The third and final day of the Diggers and Dealers conference in WA saw some of Australia’s biggest gold companies present.
This included the likes of Evolution Mining, Northern Star and Saracen Mineral.
Lynas Corporation – (ASX: LYC)
Speaker: CEO and Managing Director Amanda Lacaze.
Share Price: $2.83, up 3.10 per cent.
Market Cap: $1.893 billion.
From 2014 to 2016 operations at Lynas stabilised, and in mid-2016 both plants were up and running.
Through its NEXT program, production capacity increased to 7.2ktpa of NdPr and a wider product range. This is significant because the demand for NdPr is forecast to accelerate from 2021.
Its 2025 plan is to grow a larger business to meet the demand growth, diversify its industrial footprint with processing facilities and achieve a $500 million capital plan.
Evolution Mining – (ASX: EVN)
Speaker: Executive Chairman Jake Klein
Share Price: $5.38, up 5.49 per cent.
Market Cap: $8.655 billion.
Evolution Mining has evolved from a small company into a globally relevant gold mining business. This was done through the likes of the Cowal Project in NSW, Mungari in WA and Ernest Henry in Queensland.
Over the last five years Evolution’s budget has increased from $20 million to between $80-$105 million. Its average reserve life has extended from five years, to 10 years, and reserves per share have increased by 42 per cent.
Its future includes prioritising Australia and assessing North American opportunities, and explore high-value gold deposits with a focus on epithermal and orogenic styles.
Northern Star – (ASX: NST)
Speaker: Chief Executive Officer Stuart Tonkin.
Share Price: $13.26, up 5.07 per cent.
Market Cap: $8.071 billion.
Northern Star in the ASX100 and is one of the top 25 global gold producers with mines in Western Australia and Alaska.
It has delivered leading returns at its Kalgoorlie and Jundee mines since taking ownership in 2014. It has previously announced a 31 per cent increase in resources and a 35 per cent increase in reserves.
Its FY2020 guidance is 800koz-900koz at an AISC between $1200/ounce – $1300/ounce.
Saracen Mineral Holdings – (ASX: SAR)
Speaker: Managing Director Raleigh Finlayson.
Share Price: $4.62, up 3.71 per cent.
Market Cap: $3.650 billion.
Saracen Mining’s presentation, outlined it had improved both safety and production at its projects.
Its Carosue Dam mill trommel was re-designed to improve life and throughput. This was successful and increased 80ktpa equates to an additional 6500 ounces/per annum produced.
The Carouse Mill is also planned to be expanded to 3.2Mtpa during FY20-21, currently sitting at 2.4Mtpa, for a capital cost of $34 million. Open-pit mining will resume in FY21 and the under-explored mine corridor presents an opportunity for further repeat deposits.
Its primary focus is to deliver on the next chapter of growth regarding its projects, reserves and funds.
Mount Gibson Iron – (ASX: MGX)
Speaker: CEO Peter Kerr.
Share Price: 77¢, down 2.53 per cent.
Market Cap: $892.7 million.
Mount Gibson’s Koolan Island is Australia’s highest-grade hematite mine with an ore reserve of 21.0Mt at 65.5 per cent iron for a six-year mine life. High-grade shipments began in April 2019 with an average price of USD$106/dry metric tonne.
In 2018 Mount Gibson’s highest iron discovery was sitting a little over 60 per cent but the discovery at Koolan Island increased that.
Over the next six months, 1 million tonnes will be targeted.
Pilbara Minerals – (ASX: PLS)
Speaker: CEO and Managing Director Ken Brinsden.
Share Price: 42.8¢, up 0.59 per cent.
Market Cap: $786.8 million.
Pilbara Minerals’ Pilgangoora Lithium-Tantalum Project is one of the largest spodumene-tantalite resources in the world and has a 23-year mine life.
Stage 1 of the program produced 330,000tpa spodumene and 321,000lbs per annum of tantalite concentrate. Revised implementation strategies for Stage 2 are under consideration.
Pilbara Minerals is considering Joint Venture partners for Stage 3 to support project expansion and potential links to enhance chemical capacity.