Gold Digger: Aussie gold miners produce one of their best ever quarters

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• Producers are making bank from all-time gold price highs
• Regis, Ora Banda, Rox, Regis and Catalyst post record production/sales
• Poor $A supports gold this week in the markets

Our Gold Digger column wraps all the news driving ASX stocks with exposure to precious metals.

Quarterlies have started pouring out of Australian goldies and it’s not surprising record sales have been posted as the bullion spot price pushed to all-time highs of US$2483.63 across Q2 this year.

A weak AUD keeps prices up and we take a look at a few gold producers that are laughing all the way to the bank after releasing record Q2 production and sales results.

To the markets

Analyst Market Matters is bullish on the shiny, fingering over the week’s ructions and it’s “another poor session for the $A and a firm gold market left the precious metal within striking distance of fresh all-time highs in terms of the local currency”, says MM.

“Several subscribers have questioned the solid performance of the ASX gold names this week, even when gold tumbled over $US50/oz last Friday.”

Market Matters puts the strength down to a few factors:

“A weakening $A has supported the gold price in local currency terms and are embracing lower interest rates into 2025, a tailwind for precious metals.”

Rox Resources (ASX:RXL)

Stockhead Barry Fitzgerald’s interest has piqued towards Rox Resources this week, with its work on the historical Youanmi gold project in WA’s Murchison region.

“Rox this week released a pre-feasibility study into bringing Youanmi back to life as a 103,000oz producer over an initial life of 7.7 years, with all-in sustaining costs using Glencore’s Albion process to deal with refractory ore estimated at $1677/oz,” Says Fitzgerald.

“Using a conservative gold price assumption of $3100/oz, or more than $500/oz below the spot price, the NPV (pre-tax) was estimated at $486m and the IRR at 42% on a pre-production capital cost of $245m.

He notes that Canaccord has a 51c price target on the stock.

“Given the lack of WA gold development assets outside established producers, it is pleasing to see Rox deliver a low-cost, high-margin study,” says the analyst in a review of the company’s PFS for Youanmi.

“With average life of mine production of 103,000oz pa, the project has sufficient scale, in our view.”

Ora Banda (ASX:OBM)

WA gold digger Ora Banda Mining dropped earnings this week, upping Q4 production by 11% (a total of 19,271oz) on the previous quarter, at an AISC of $2878/oz.

The goldie’s FY24 total ounce production of 69,932oz at an AISC of $2767/oz was in line with guidance (between 67-73koz) a handy 46% improvement on FY23.

The Company has several projects in the Central Davyhurst region, which are hosted by two principal mineralisation trends: the eastern trend, which includes the Golden Eagle deposit, and the western trend, which hosts the Waihi deposit

This contribution of high grade ore from the co’s first underground project at Riverina was a key driver for a record month in June, delivering more than 7koz at an AISC of A$2157/oz, despite poor weather constraining output.

The period was also marked by progressing preparations for development of the Sand King Underground mine. The mine, expected to cost ~$39m to develop (from operating cash flows and existing cash), will have a steady state production of ~60koz p.a. commencing in the June 2025 quarter, the co said in its release.

Regis Resources (ASX:RRL)

Regis delivered record cash and bullion build of $109 million in the last quarter and $141 million since the hedge book was closed out in December 2023.

“We continue work on delivering ongoing cash build into the future. As well as delivering a strong cash build during the quarter.”

At Duketon, Regis continues to build on its underground-centric strategy, targeting four to five sustainable operating underground mines.

Work is now underway on the development of a third mine, Garden Well Main and significant life extension at Rosemont with Stage 3.

“In-line with our underground growth strategy, for a third consecutive year, we delivered underground Ore Reserve growth at Duketon and Tropicana, with growth outpacing depletion.

“We believe that this underground Reserves growth trend will continue, and while we continue to drill for high-value, open pit ounces, we are confident we can add further value by identifying additional underground mines.”

After the end of the quarter, Regis delivered the McPhillamys DFS, with Beyer confirming the project as “a value accretive, long-life, expandable, low operating cost open pit that delivers robust financial metrics.

“McPhillamys is one of Australia’s largest undeveloped open pit gold projects and we are very pleased to have such significant growth optionality in our portfolio. McPhillamys, along with our underground projects at Duketon and Tropicana, gives us a strong growth pipeline,” Beyer added.

Catalyst Metals (ASX:CYL)

Catalyst Metals dropped quarterlies this week too, and produces circa 110koz of gold annually across three highly prospective gold belts as part of its multi-asset strategy.

It owns the 40km long Plutonic Gold Belt in WA, hosting the Plutonic gold mine and neighbouring underexplored, high-grade resources, with a substantial mineral endowment of 10Moz.

It also owns and operates the high-grade Henty Gold Mine in Tasmania which lies within the 25km Henty gold belt. Production to date is 1.4Moz @ 8.9g/t.

Catalyst also controls +75km of strike length immediately north of the +22Moz Bendigo goldfield and home to high-grade, greenfield resources of 26g/t Au at Four Eagles, with further discoveries expected.

Quarterly production totalled 31,502oz at an average AISC of A$2338 made up of 24,576oz gold produced at Plutonic – at an AISC of A$2291/oz as well as 6926oz gold produced at Henty that shoulders an AISC of A$2469/oz – its highest on record.

MD James Champion de​ Crespigny​ ​was particularly pleased with ​t​he quarterly ​turnaround at the flagship Plutonic ​project ​.

“This turnaround was shown not only in the 40% increase in gold production, but in the considerable reduction in the company’s debt. After 12 months, this is a pleasing accomplishment,” he says.

“With 12 months of operating success behind us, we have begun turning our attention to organic growth over the next 12 months to provide additional ore feed for the under-utilised Plutonic mill in 2025.

“We are pleased with the faster-than-expected dewatering at Plutonic East. It’s existing permits and infrastructure allow for a rapid and low-cost restart. Similarly, the shallow high-grade results from drilling at Trident have allowed a revised open pit development approach for the deposit, which will have a more manageable upfront capital profile than previously expected.”

Cash​ flows from operations allowed the miner to end Q2 with $37m in cash and bullion, $45m liquidity and only $8m debt in the form of a 2220oz gold loan repayable in six monthly instalments​.

Winners & Losers

Here’s how ASX-listed precious metals stocks are performing:

Scroll or swipe to reveal table. Click headings to sort. Best viewed on a laptop.

Stocks missing from this list? Email [email protected]

At Stockhead we tell it like it is. While Ora Banda Mining is a Stockhead advertiser, they did not sponsor this article.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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