A few Australian Gold companies are competing for the mid-tier gold producer space. This space is prime possition for growth, they are not at all concerned with replacing ounces but the race is on to be the next Newcrest for Australia. As far as I can see (there may be more) these are the players Regis Resources Evolution Mining SilverLake Resources Kingsgate Consolidated All have aquired new projects, all have exploration potential at existing mines Add to the list if you know more - ___________________________________________________________ Here is the criteria Producing Gold from relatively stable mines (eg not Beadell) Stated aim to achieve 400,000 within the next 3 years (eg, Not Troy) More than one mine 100% owned opperating mine (eg not Kingsrose) Average cash cost well within secure profitability PM Specific (eg not Independence Group) Peak is before them not behind them (eg not OceanaGold Corp, St Barbara) ___________________________________________________________ However long this list is - I bet within it you will have a portfolio of producers that stand to make you the best mid-long term returns (IMHO) They will also be the most sort after takeover targets by Newcrest, Newmont and the other top-tier miners Newcrest owns 33% of Evolution Newmont owns 20% of Regis Why this space is better than investing in top-tier Because in the search to hunt for sufficient resources to replace ounces and maintain production - They cant be oppertunistic and pick up bargans (they are on a countdown) Investors are theirs to lose (not gain) Market may consider them... dull and peaked Think about these things, next 5 years will be very interesting to watch this space, there will be a large sum of proffessional investor money to compete for. My strategy since May was to accumulate these guys - we'll see how I go
Kalgoorlie Consolidated Gold Mines (a joint venture owned by Newmont [Australia] and Barrick) the operation produces around 850 000 ounces of gold annually and is the largest open pit mine in Australia. The Boddington gold mine is one of Australia's newest gold mines, beginning production in 2009. At the end of 2010 it had reserves of 20 million ounces of gold and 2.4 billion pounds of copper. http://www.miningaustralia.com.au/news/the-world-s-ten-largest-gold-mines
Either way ASX investors cant invest in it, Newmont delisted from the asx. And dont forget Anglo Gold and Idependence Group's JV
By the way, im not saying this list couldnt grow if other companies like St Barbara etc make extremely good decisions in the M&A arena. In the list I think everyone would agree Kingsgate is currently coming last I ronically because they may have moved too early. But as David Morgan says - its better to be 6months too early than 6mins too late (he was talking about investing in silver)
Still relevant, I think Kingsgate is going to take a while to grow production... But silverlake and evolution are doing pretty well.
I have been looking and I'm about half way through (I've looked at some many company presentations at one point I thought I was going to vom!) Anyway, so far I have found one company that (almost) fits the bill outlined by SilverSanchez above, Citigold Corp being the company in question. They are currently producing and produced 7,759oz of gold in 2012 turning a gross profit of $7.8m. They are 100% owners of Charters Towers goldfield Have recently raised $100m to expand Central mine "aggressively" which will produce 200,000oz pa. overall the company should produce 330,000oz per year Last traded on the ASX at 0.55c FIN
I love wading through tripe from mining companies - I actually enjoy it But it does make you feel like your going to die after a while.
omg no, not Citigold, possibly the fugliest in the fugly parade How many shares now? Looks like 1,352,907,765 ordinary shares plus a $100m convertible bond issued this April 2013. This is a company where even our ASX finally had to intervene, as I remember they were stopped going on about 30m 0z 'potential'. The following is a grab sample of the chairman's annual report comments to just give a flavour of this company. The same management are still in place. Must be pretty well off by now, they've got some of my money. If you go back over their 'newsletters' and reports you'll find it littered with references to the future; they are futurologists. Company, oated on the ASX in December 1993. Ten years of fund raising later we begin at 2003 ... 2003 Annual Report Chairman's letter ".. have one million ounces of gold in resources with a gold potential of 15 million ounces and are poised to commence gold production" 2004 Annual Report Chairman's letter "Dear Shareholder This was a particularly successful year, with your Company achieving a number of milestones in the advancement of our business plan. We commenced the underground development of the first of our four new mines, the Warrior gold mine. Annual production of 40,000 ounces per year from the Warrior mine is scheduled to commence in early 2005" 2005 Annual Report Chairman's letter "Annual production from the Warrior mine is scheduled to be 40,000 ounces per year over a minimum ten-year mine life" 2006 Annual Report Chairman's letter "This coming year we are targeting full production at Warrior gold mine at the rate of 40,000 ounces per year and the commencement of development work on the second phase of the charters towers gold project, which will take the production rate to 120,000 ounces per year. later phases will build production to 250,000 ounces per year" 2007 Annual Report Chairman's letter "This coming year we are working to build up the gold production rate towards our initial goal of 100,000 ounces a year" 2008 Annual Report Chairman's letter "...and I look forward to a rapid increase in gold production" 2009 Annual Report Chairman's letter First time he doesn't mention future gold production Actual total gold sold during the year was 10,906 ounces 2010 Annual Report Chairman's letter " and your Board feel that we have built a solid foundation to now start to grow production and look forward to a strong 2011." Actual gold production for the year was almost 16,000 ounces 2011 Annual Report Chairman's letter "...a temporary drop in production. However production is now back on the growth path... .. should then see gold production progressively grow to exceed 320,000 ounces per year in 5 years." Actual gold production was 8,451 ounces 2012 Annual Report Chairman's letter "The Central mine expansion plan, once complete, will produce over 200,000 ounces of gold annually as a part of the overall Charters Towers planned output of 330,000 ounces per year" Actual gold production was 7,559 ounces and on to the $100m capital raising
Yes yes, I should amend the criteria If a company has 1billion ounces - they can have 1 billion shares If a company has only 5mil ounces they have no business having 1 billion shares at the mid cap level. High issued shares are good evidence the company has not been well managed financially, and if a company is managed poorly in that area - they have no respect for shareholder money, and therefore it becomes increasingly irrelevant how many ounces of productionthey have - they dont use money well FULL STOP. Barrick Gold is a good example of a company that has turned winning mines into holes in the ground, and better companies have taken Barrick's mistakes and turned them into successes (eg Evolution Minings aquisition of Panjingo from Queensland mining (I think) when they were taken over by Conquest (the company that was precursur to evolution)
Endeavour's annual gold production is forecast to reach 450,000 ounces per year during 2014 asx:evr (ex adamus via takeover/merger)
Regis Resources (RRL) Evolution Mining (EVN) SilverLake Resources (SLR) Kingsgate Consolidated (KCN) Endevour (EVR) Medusa Minging (MML) Primero (PPM)
