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Writer's pictureJames Pearson

Auric Mining spits out another $6.3m from WA gold sales


Auric Mining managing director Mark English, company secretary and finance manager Catherine Yeo and technical director John Utley with a gold doré bar at the Greenfields Mill on August 6.

Auric Mining (ASX: AWJ) has again rung the till with another $6.3 million worth of sales for August in its money-making mission at the Jeffreys Find gold mine near Norseman in Western Australia … with more still to come by year’s end.


The company, which collected $4.7 million in free cash from the first year of the two-year operation, is now predicting a more-then-expected total of $25 million in gross gold sales from its second 150,000-tonne milling campaign for this year. The latest sales add to the $4.5 million Auric generated from a 30,000-tonne milling campaign in April at the Greenfields Mill as part of the profit-making joint venture (JV) operation it shares with Kalgoorlie-based BML Ventures.


The three parcels of gold were sold at an average price of $3697 per ounce, just 2 per cent off the all-time highs for gold, bringing the total gross revenue from the 2024 milling program to $10.8 million.


The current second milling program is set to conclude early next month, with an additional 120,000-tonne campaign scheduled for November. As of yesterday, nearly 129,000 tonnes of ore had been delivered to the mill.


Over the coming month, Jeffreys Find Gold Mine is expected to generate around $25 Million in gross gold sales as 150,000 tonnes gets processed at the mill. It will perform much better than originally anticipated. On current projections, we will extract in excess of 20,000 ounces of gold this year. This would be a phenomenal result for Auric.
Auric Mining Managing Director Mark English

The company has confirmed that it intends to mine a further 100,000 tonnes of ore to bring the total mining campaign up to 400,000 tonnes by early next year. As the contract with the Greenfields Mill is for 300,000 tonnes, the JV is on the hunt to secure further capacity elsewhere.


If it achieves its expected numbers, management believes it could produce 20,000 ounces of gold – which at $3700 an ounce, would equate to a huge $74 million in gross sales. Today’s Australian gold price is hovering above that lofty mark.


As part of the arrangements for Jefferys Find, BML manages the mining operations, haulage and milling. The partnership then splits surplus cash proceeds equally after covering all direct costs, ensuring a fair distribution of the financial benefits from the gold sales.


To that end, Auric is now poised to receive $3 million in cash within the month, comprising $2 million as an initial surplus cash distribution and $1 million as a repayment for working capital.


Given the propensity for Auric to spit out regular cash from its Jeffreys Find operations, the reaction today from the share market has been unsurprisingly favourable. The company’s share price jumped 10.4 per cent this morning to a high of 26.5c, with nearly 1.4 million shares traded.


One can almost hear the gnashing of teeth from those who turned their noses up a few years ago at the prospect of mining what was seen as only a modest Norseman deposit and a project considered too hard and too much trouble. But Auric and BML have shown that every dog can have its day and Jeffreys Find is starting to look as if it could win a comparative best-in-show prize at Crufts.


Is your ASX-listed company doing something interesting? Contact: office@bullsnbears.com.au



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