Saracen Releases Quarterly.
Hot of the press is Saracen Minerals (SAR) quarterly report. In brief the main points from the report are;
– Quarterly gold production – 154,388oz at AISC A$1,169/oz.
– At 30 September – Cash / liquids A$467m, debt A$321m.
– Quarterly cash build – A$98m.
– Record quarterly unaudited NPAT – A$70m to A$80m.
Growth projects: Carosue Dam mill expansion, Thunderbox Underground development accelerated, Thunderbox D Zone, KCGM Morrison and OBH open pits. A$14m invested in exploration, Group Reserves and Resources updated to 8.6Moz and 17.0Moz respectively. SAR FY21 guidance of 600 – 640koz at an AISC of A$1300 – A$1400/oz unchanged. Saracen will pay a special, fully franked A3.8cps dividend, conditional on the Scheme becoming effective and banking consents.
OZ Minerals Quarterly report.
It would seem that OZ Minerals (OZL) have kicked some goals in the quarter if the enthusiasm in their quarterly report is to be believed. They reported that production was up in the quarter and as a result of that production guidance will be increased.
The quarter saw underground ore movement records at both Prominent Hill and Carrapateena, with further AISC and C1 cost guidance reductions assisted by an increase in the assumed 2020 full year gold price to US$1,758/oz and favourable exchange rates.
Projects have been completed including the 270 km Prominent Hill power transmission line, consolidation of our ownership of West Musgrave and safe resumption of exploration drilling. We’ve also advanced a number of our growth options with updates to come in this final quarter on Prominent Hill expansion and the West Musgrave project.
Managing Director and CEO, Andrew Cole said, “Our financial position remains robust with $18 million net cash at the end of the quarter after further investment in growth capital, as well as payment of US$50 million in deferred consideration following achievement of contractual milestones at Carrapateena.
“Further progress was made on accelerating our strategic aspirations through Project Beyond including advancing our organic growth pipeline with work starting on developing the accelerated decline at Prominent Hill and with resumption of exploration and resource drilling in Australia and Brazil.”
Metalicity Report Significant Drilling Results.
Metalicity (MCT) has announced the return of further assays from the Drilling Programme at the Kookynie Gold Project in the Eastern Goldfields, Western Australia, approximately 60 kilometres south southwest of Leonora.
They received assays for a further 14 drill holes from the McTavish Prospect of the expanded drilling programme currently underway at the Kookynie Gold Project. The drilling has confirmed significant high-grade gold mineralisation at the Leipold Prospect and that mineralisation at the McTavish Prospect continues at depth. McTavish is circa 2 kms to the north and is along strike from Leipold. Metalicity has defined a significant anomaly between the two mineralised prospects where there is essentially no drilling and which the Company plans to test shortly.
Metalicity Managing Director, Jason Livingstone said: “The intercepts returned from McTavish are incredibly encouraging. The results from just north of the Leipold Pit were in line with observations from the drill chips, however the drilling to date continues to illustrate the well-endowed area that is the Kookynie Gold Project.”
“The end of the year is fast approaching, and we at Metalicity are working hard to ensure we finish the year off well and set ourselves up for further success in 2021.”
Warrawoona Gold Project Gains Momentum.
Calidus Resources (CAI) reported what they say is good progress in the development of its Warrawoona Gold Project in WA’s Pilbara, with some key early works already completed.
Orders have been placed for long lead items, including the SAG mill, in preparation for the commencement of the main Project construction in the March Quarter of next year.
The early works include the site access road, installation of the 240-room accommodation village, establishment of the communications network and installation of water bores that will be utilised for construction, dewatering and production.
The early works programme is designed to provide the backbone of infrastructure ahead of the Final Investment Decision and the completion of permitting to facilitate main project construction.
Calidus Managing Director Dave Reeves said: “Ordering the mill is a significant milestone for Calidus because it sets our construction schedule and with final project permitting and debt finance anticipated to be completed by early next year, we remain on track for commencement of main construction activities in the March Quarter of 2020.
“Our operations team is in place and supervising the current early works scope on site. A Marble Bar-based contractor, Hawkezone Contracting, has completed the 7km Access Road and the site village installation is underway. All water bores have now been completed which will provide water for both construction and production activities.”
Confidence by Investors and lenders Sees Money Pouring into Mining.
It would seem by the amount of money being raised at the moment that confidence is high amongst investors and lenders. Could this be because of high gold prices and other commodities that are doing well, like iron ore and nickel and also speculation that minerals in the battery markets are set to go with more governments talking about a “green” future?
Late last year Saracen Minerals and Norther Star Resources each raised circa AU$1 Billion to buy 50% each of the Superpit in Kalgoorlie. That is a lot of money in anyone’s eyes. Admittedly it was for a first-class asset with lots of upside, but nevertheless it got done and showed others there was a bit of confidence around.
Mining companies have never been shy when it comes to putting their hands out to funds and shareholders, but at the moment there appears to be a bit of eagerness in those funds and shareholders willing to cough up. As usual funds for exploration are high on the list as companies can’t make money until they found whatever they are looking for.
Funding for plant builds or upgrades seems to be on the up and a lot of explorers are starting to talk big about their projects with a view to going to the market to raise cash for the next stage.
