This week has been eventful so far. Cooling inflation data prompting an early interest rate cut, rise and retracement of tech stocks and crude retreating on a bearish monthly report from International Energy Agency, IEA have been hogging the news.
The one lost in the melee is the regained interest in gold investing. With a potential rate cut on heels and growing Asian demands, Gold Mining Stocks are likely to surge further.
The Two Gold Companies to look at :-
Black Cat Syndicate Limited (ASX: BC8)
Black Cat boasts a promising and diversified project portfolio, with all projects at significantly advanced stages of exploration, providing substantial commercial opportunities in the coming years.
Notably, the Paulsens project, with historical production of approximately 1 million ounces, now holds an extensive mineral resource and ore base. The project has 177 thousand ounces of gold ore reserves and a 450 ktpa processing plant, which supports operational viability, reduces capital expenditures, and enables a swifter development timeline.
The company’s other projects show equal or greater commercial promise. The Kal East Project holds gold ore reserves of 381 thousand ounces, while the Coyote Project has 200 thousand ounces of gold ore. Ongoing exploration efforts are expected to yield consistent mineral resource discoveries, complementing the company’s ore reserves across each project and ensuring significant long-term scalability. The accessible ore reserves and established infrastructure at Paulsens will enable the company to make significant commercial advancements under its high-grade stockpile strategy, driving sales activity and contributing to overall commercial advancement.
Black Cat Syndicate Limited recently announced financial updates regarding the restart of its wholly-owned Paulsens Gold Operation. The company has secured firm commitments for $36 million through a two-tranche placement to institutional and sophisticated investors at $0.27 per share. The Placement received strong support from existing shareholders, as well as several new institutional shareholders from North America and Australia.
Previously, Black Cat entered into an Ore Sale Agreement with Paddington Gold Pty Ltd (PGPL), the owner of Paddington. This agreement outlines the terms under which ore from the Myhree and Boundary open pits is delivered and sold to PGPL.
The three primary projects in Black Cat’s pipeline demonstrate highly promising commercial potential, supported by a robust current mineral resource base that outlines future commercial prospects and enables early commercialization opportunities. The long-term growth potential also remains strong. The Coyote Project, notable for its exceptionally high grades, and the Kal East Gold Project, with its extensive landholding and fully approved, ready-to-develop mine, offer attractive long-term growth and capital appreciation prospects.
Alkane Resources Limited (ASX: ALK)
Alkane Resources Limited, on 4 July 2024, released the FY24 production updates for its Tomingley Gold Operations. This displayed a robust production performance in the final quarter of the financial year and achieved the revised production target of 55,000oz to 58,000oz Au. Tomingley yielded 57,217oz of gold for the 12 months ending on 30 June 2024. Initial all in sustaining costs (AISC) are projected to align with the updated guidance ($2,150/oz to $2,350/oz) for the same period.
As of 30 June 2024, the company's unaudited cash, bullion, and listed investments amounted to $54.5m, comprising $45.5m cash, $8.7m bullion on hand, and $0.3m listed investments. During the quarter, $42.8m was drawn from the $60m debt facility provided by Macquarie Bank.
Furthermore, the company released additional findings from its drilling initiative at the Northern Molong Porphyry Project (NMPP) in Central New South Wales. The program was aimed at the most critical areas within the tenement package.
The company continues to drive significant financial growth, with its revenues increasing from $92 million in 2019 to $190 million in 2023. During the same period, its earnings have grown from $23 million to $42 million, and cash generation has nearly tripled from $36 million to $95 million. This validates a substantial enhancement in the company’s financial position, leading to significant growth in its book value over the years.
Source: Company's Report
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