Diggers & Dealers: Your BIG Final Day Wrap
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That’s it folks. It’s been the usual wild ride.
“Speaking on Wednesday can be a bit of a tough shift,” says Mincor Resources (ASX:MCR) boss David Southam.
Not that Mincor is doing it tough; the nickel developer has just penned a big offtake deal with the resurgent BHP Nickel West. This follows the acquisition of the historic Long operation in Kambalda from nickel major Independence Group (ASX:IGO).
“There’s been a lot of presentations this week on the nickel market, and what happening around EV demand,” Southam says.
“Carmakers are definitely chasing nickel – I think we got our timing right.”
Tom Sanders from multi-million ounce gold explorer Breaker Resources (ASX:BRB) also had a great story to tell.
Its Bombora discovery at its Lake Roe project, 100km east of Kalgoorlie, comfortably sits amongst the biggest virgin gold discoveries of the last 15 years.
“Two years ago, I was here talking about a greenfields discovery,” he says. “This year I’m here talking about a development story.”
“How good would it be to be back in iron ore and gold right now,” says Ken Brinsden from lithium producer Pilbara Minerals (ASX:PLS).
The lithium industry might be doing it tough right now, but the future is bright, he says.
“There are huge moves happening downstream to position for growth and quality,” he says. “The point is that no one is slowing down.”
Jake Klein of $9.1 billion market cap Evolution Mining (ASX:EVN) attempted to answer a question that he says the industry “hasn’t answered very well in the past.”
Using a classic Jerry Maguire reference.
“So, you want to see the money? Let me show you where it is,” says Klein.
In the last five years one of the lowest cost gold miners in the world has created $1.55bn in free cash flow, paid down a big $910m debt pile, returned $345m in dividends to shareholders and built a hefty cash balance.
All at gold prices $550 to $650 lower than today, Klein says.
And Mount Gibson Iron (ASX:MGX) is now – once again — mining one of the highest-grade orebodies in Australia at Koolan, chief exec Peter Kerr says.
“[It is] strongly cash generative at almost any iron ore price we see before us.”
This is gold explorer Saturn Metals’ (ASX:STN) second year at Diggers & Dealers.
“Last year, we were a new company and there was a lot of interest,” managing director Ian Bamborough told Stockhead.
Since then, the explorer has made a massive new discovery at it Apollo Hill project in WA.
“This year, a lot of people are coming by [the booth] who have been following the story as it has developed.
“There’s some genuine interest in the stock and what we are doing next.”
A Tuesday site visit to Lefroy Exploration’s (ASX:LEX) greenfields Lucky Strike prospect was an eye opener.
This is picture of samples from recent hole LEFR132; each of those piles of dirt represents one metre of drilling:
See those light brown piles on the right?
17 of those piles – starting a 129m — contain a consistent 3.58g/t gold. Next time we’re bringing a gold pan with us.
St George Mining (ASX:SGQ) is an exciting nickel explorer.
Back when an ailing BHP Nickel West was divesting non-core assets St George managed picked up the Mt Alexander nickel project for an absolute song.
Now, backed by a health(ier) nickel price and the ongoing exploration success St George is having, we reckon a revitalised Nickel West would take Mt Alexander back in a heartbeat.
St George chairman John Prineas told Stockhead that’s “obviously not going to happen”.
“We’ve already had battery manufacturers come to us direct, asking to make an investment in St George to secure long-term supply,” he says.