Emerald Resources (ASX:EMR) is pressing ahead with its corporate growth strategy to become a 300,000-plus ounce per annum gold producer operating multi-assets across two continents, according to the company’s latest annual report.
Chairman Jay Hughes says in the report this reporting year has been the strongest yet for Emerald Resources across all aspects of its operations.
At the end of FY24, the $2.89 billion market capitalisation company had $162.3 million in cash and bullion at hand – an 80% increase on its FY23 balances.
The company’s share price reflects the Chairman’s sentiments rising from $2.87 on 3 January to close trade yesterday at $4.36 a share with a low of $2.75 during Q1 2024.
While the Okvau Gold Mine and near-mine resources will continue to underpin activities, operationally and financially, in the year ahead Emerald expects to be progressing development of its 100% owned Memot and Dingo Range Gold projects with a “clear focus on our corporate growth strategy to become a multi-asset, +300koz per annum gold producer, across two continents”, says Hughes.
Emerald is also progressing two gold projects in Western Australia comprising in excess of 1,300km² of tenure including the Dingo Range Gold Project, which covers more than 900km² of the entire Dingo Range greenstone belt.
In H2 2024 a resource is expected to be announced at Dingo Range incorporating the results from an “aggressive” exploration campaign, which Hughes says delivered “outstanding results from the +70,000m drilled during the financial year”.
Additionally, the Freeman’s Find, Banjawarn, and Great Northern prospects demonstrate that Dingo Range has the potential to host multiple standalone or satellite deposits to supply additional ore to a central milling location, he adds.
Meanwhile, the company also anticipates updating resources at the Memot Gold Project in H2 2024, with development aimed for 2025.
“We have met our gold production guidance and delivered an after-tax profit of $80.7 million (2023:$53.8 million) generated from revenues of $371.1 million (2023: $299.5 million), primarily from our 100% owned Okvau Gold Mine in Cambodia, with $33.4 million reinvested into growth and development during the year,” Hughes says in Emerald’s annual report.
“Working with our contractors, we have been able to do so without compromising our support for the communities in which we operate, protecting and revitalising our environments and ensuring that we operate safely and sustainably.
“Our clearly stated objective is to grow shareholder value by identifying gold mining opportunities with long-term exploration upside. We are proud of our inclusion in the S&P ASX 300 Index for the first time in September 2023 and subsequently the S&P ASX 200 Index in November 2023.”
During the year the company produced 114,076 ounces of gold doré from its Okvau Gold Mine. Hughes notes that gold production since Emerald’s first gold pour in June 2021 now totals 323,894oz representing more than 10 tonnes of gold.
“Importantly, this was delivered at an AISC for FY24 of $US818/oz,” the Chairman adds.
Okvau gold production guidance for FY25 remains in line with the Definitive Feasibility Study (DFS) of 100,000 to 110,000oz on an annualised basis with production improvements and cost containment remaining a focus for Emerald’s operational team in Cambodia.
According to the annual report, quarterly production guidance remains in line with DFS forecasts at 25,000 to 30,000oz per quarter and cash costs will sit largely within the US$810 to US$880/oz range.
On 30 September the company reported access to all parts of the pit at Okvau had been fully restored well ahead of schedule following a minor wall slip announced two weeks prior.
Earlier that month, Emerald signed a binding term sheet with Golden Horse Minerals (TSX-V:GHML) to sell the company’s tenements located in Southern Cross, Western Australia (Southern Cross Gold Project). Golden Horse’s flagship project is complementary to Emerald’s existing tenements.
As part of the transaction, Golden Horse will seek a dual listing on ASX, and once completed
Emerald will hold a cornerstone investment in Golden Horse.
Write to Adam Orlando at Mining.com.au
Images: ASX & Emerald
