Gold Miners SPECIAL REPORT - businessnews.com.au - Business News
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Gold
Miners
SPECIAL REPORT
businessnews.com.au
FEATURE
GOLD MINERS
“ We’ve got
quite a bit of real
estate to explore
- Glenn Jardine
De Grey is bullish about its
Hemi discovery in the Pilbara.
Photo: De Grey Mining
New gold mines to bolster sector
Favourable market conditions have led to a suite of
new gold producers and projects.
WESTERN Australia’s goldminers have That’s evidenced by recent in the prior financial year, according
continued to thrive in 2021, with the fluctuations in the gold price, which to the latest data from the Department
sector raising billions of dollars in the this year has ranged from $US1,683/ of Mines.
past 12 months. ounce to $US1,908/oz. That figure could grow further, given
Although retreating from an all-time Much like WA’s iron ore producers, the ease with which goldminers and
high in August last year, the price of goldminers have continued to benefit explorers are able to raise funds.
gold has remained well above where it from strong prices and other favourable Perth-based HopgoodGanim
Jessica Mascione was in 2018 and 2019, largely because market conditions, providing incentives Lawyers has estimated that, of the
jessica.mascione@businessnews.com.au of continued economic uncertainty for companies to begin new projects. $7.6 billion raised by WA resources
caused by COVID-19. That has also provided an incentive companies in the past 12 months,
It’s influenced by several other for junior miners to seek investment $3.3 billion can be attributed to gold
macroeconomic factors including for exploration. companies, with $2.25 billion raised by
vaccination progress, inflation, and The number of gold projects in the explorers and more than $1 billion by
the strength of the US dollar. state reached 52 in 2019-20, up from 47 producers.
Managing wide range of projects:
Proven track record
Extensive capability
Quality earthmoving
Delivering
practical solutions
Contact us
and high quality civil and earthworks (08) 6184 2847
services to mining clients across enquiries@australianie.com.au
Western Australia. www.australianie.com.au
24 | Business News July 26, 2021
FEATURE SPONSORED CONTENT
GOLD MINERS
Gold price
2,200 – Price ($US) “The Connected Worker”
- Mining’s new normal
1,800 –
1,400 –
1,000 –
Jan 19 Jul 19 Jan 20 Jul 20 Jan 20 Jul 21
Data & Insights Powered by Morningstar
®
businessnews.com.au/bniq/market-index/gold_price/1095
Resources and energy partner Bellevue Gold is also on track to
Paul Harley told Business News gold developing a project in the Goldfields:
companies were taking advantage of a proposed $255 million mine expected
an investment window, with examples to produce 160,000 ounces per annum
including Red 5 and Bellevue Gold. for the first five years of an initial
Red 5 is planning to bolster its seven-year operating life, followed by
Darlot operations in the eastern 151,000 ounces per annum.
Goldfields by expanding its nearby The company raised more than
King of the Hills open-pit and $160 million last year to develop its
underground mine, south of Leonora, namesake project.
into a standalone mining and “We are seeing a perfect storm of
processing operation. conditions for investment in gold
In times of economic uncertainty, operators as BYO streaming services
Led by managing director Mark companies at the moment,” Mr Harley
Williams and chairman Kevin Dundo, the market always places a high val- can be used instead of expensive
told Business News.
Red 5 expects King of the Hills to “Almost half of capital raised by ue on precious metals. It’s no surprise commercial contracts for paid TV
average 176,000 ounces per annum resources companies in the past 12 then that gold has been on people’s services such as Foxtel.
for the first six years of its 16-year months has been by gold explorers minds. There is a raft of small cap Operationally, the digital trans-
operational life, followed by an and emerging gold producers bringing and exploration listed and private formation in mine sites has seen the
average of 146,000 ounces a year. projects online. companies that are attracting signifi- increase in IoT sensors to monitor crit-
First gold pour is scheduled for June “This isn’t unexpected, when you cant investment and media coverage ical equipment for more effective con-
next year. consider the typical 10- to 15-year throughout the pandemic… dition monitoring, the advancement
Red 5 acquired the project from lifecycle of a project from exploration Calidus, De Grey, and Barton Gold of remote operating centres requir-
Saracen Mineral Holdings in 2017, in through to development and first gold are just a few companies that prove ing increased cloud storage to sup-
the same year it purchased the Darlot pour.” you don’t have to look far to see gold port asset management performance
mine from South Africa’s Gold Fields Mr Harley said a notable trend in miners and explorers thriving, and platforms, predictive operations and
and became a producer. the sector was the number of resources investors looking for places to get a digital twins, and wearable technolo-
King of the Hills has reserves of 2.4 companies spinning-out their gold good return on small cap shares. The gy to increase worker safety on site.
million ounces and a net present value assets into new businesses and listing challenge facing many of these or- All this digital technology has required
of $1.1 billion, as per a final feasibility them on the ASX. ganisations, given the recent boom increased connectivity innovation.
study completed in September last Among them is new iron ore in mining and border closures, is at- Whether the connective solutions
year. miner GWR Group, which recently tracting and retaining the right peo- are building a tower for private carrier
It will cost $226 million to develop, demerged a project into Western Gold ple while maximising the productivity grade microwave into a remote site,
making it one of the more costly gold Resources, now listed on the ASX, and of their team.
nbn, Telstra satellite or rebroadcast
projects under construction in WA, Blackstone Minerals, having spun-out Highspeed internet is a must in
of the Telstra 4G network for mobility,
according to Business News (see table its non-core gold assets into Codrus today’s world and remote locations
there are a range of options available
on page 26). Metals. like the outback are no exception. In
to suit your project and budget.
However, Red 5 has had no trouble Codrus began trading in April (read fact, it’s likely more crucial for these
For more information on a sim-
securing financing for the project, more about gold listings on page 31). locations given their extreme weath-
ilar project see the work we did for
with $185 million raised from In the Pilbara, Victoria’s Newcrest er conditions and isolation from larg-
Galena (ABRA) Mining at our website
investors since early 2020 and a $175 Mining is developing the Havieron er towns and cities. Mental health of
tbtcperthsouth.com.au
million loan facility secured with gold and copper project with joint workers and their ability to remain in
Unlock your business’ poten-
three banks. venture partner, UK-based Greatland contact with families, loved ones and
tial with Telstra Business Tech-
It has awarded the plant Gold. their community is critical. Providing
nology Centre Perth South. Reach
construction and mining works Newcrest, which operates the nearby stable high-speed connectivity is a
out to us on 1300 4BUSINESS or
to Perth businesses MACA and Telfer mine and is one of the state’s huge driver for this. We have recently
info@tbtcperthsouth.com.au
Macmahon Holdings, respectively, biggest gold producers, can earn up to helped several businesses across the
through $650 million and $129 million a 60 per cent stake in Havieron, having Pilbara either design, implement or
contracts. met expenditure requirements for the upgrade networks for both produc-
About 450 jobs will be created project. tion and camps.
during construction, Red 5 says, and High speed networks have been
300 during operations. Continued on page 26 shown to have strong ROI for camp
July 26, 2021 Business News | 25
FEATURE
GOLD MINERS
From page 25
Major new gold projects in WA *Entered production
In January, its board approved a
COMPANY PROJECT REGION COST TOTAL MINERAL RESOURCE
$146 million early construction cost,
ahead of results from a pre-feasibility
De Grey Mining Mallina Pilbara TBA 230mt at 1.2g/t Au for 9Moz
study expected to be released later in
the year. Ausgold Katanning South West TBA 38.2mt at 1.25g/t Au for 1.54Moz
Newcrest’s other assets include
the Cadia goldmine in NSW, which Vango Mining Marymia Mid West TBA 10.4mt at 3g/t Au for 1Moz
produced more than 820,000 ounces
Bellevue Gold Bellevue Goldfields-Esperance $255m 9.4mt at 9.9/g/t Au for 3Moz
in 2020, making it Australia’s biggest
gold operation. Red 5 King of the Hills Goldfields-Esperance $226m 64.6mt at 1.2g/t Au for 2.4Moz
Meanwhile, Ramelius Resources’
$120 million Tampia project in the Bardoc Gold Bardoc Goldfields-Esperance $177m 54.6mt at 1.8g/t Au for 3.1Moz
Wheatbelt was recently added to the
WA gold sector’s growing list of mines, Capricorn Metals Karlawinda* Pilbara $155m 86.7mt at 0.8g/t for 2.15Moz
with first ore mined in June.
Newcrest Mining Havieron Pilbara $146m 52mt at 2g/t Au for 3.4Moz
The ore’s scheduled to be trucked
to Ramelius’s Edna May processing Calidus Resources Warrawoona Pilbara $120m 43.7mt at 1g/t Au for 1.5Moz
facility this month.
The Tampia mine is expected to ACH Global Ravensthorpe Goldfields-Esperance $85m (Not disclosed)
deliver an additional 186,000 ounces
Focus Minerals Coolgardie Goldfields-Esperance $48m 6.6mt at 1.97g/t Au for 422,000oz
to the company’s annual production,
which stood at a record 272,000 ounces Ora Banda Mining Davyhurst* Goldfields-Esperance $45m 24.3mt at 2.8g/t for 2.2Moz
in FY21.
In the Pilbara, Capricorn Metals Ramelius Resources Tampia* Wheatbelt $26.4m 8.2mt at 1.7g/t Au for 460,000oz
has begun mining its $155 million
Source: businessnews.com.au/bniq/projects
Karlawinda project, which is expected
to deliver between 110,000 and 125,000
ounces each year. than 300,000 ounces per annum for at increase,” Mr Jardine told Business current quarter. It had $87 million in
Probably the most notable least a decade. News. cash at the end of the March.
exploration company to come out The Hemi deposit has maiden “We’ve also got drill rigs looking Other developers of note include
of the Pilbara in recent years is De reserves of 6.8 million ounces and is for new discoveries around Hemi, Bardoc Gold, Focus Minerals and
Grey Mining, which is focused on located less than an hour’s drive from in what we call the Greater Hemi privately owned ACH Global, which have
developing its Mallina project. export site Port Hedland. region. projects in the Goldfields (see table).
That includes the large-scale Hemi When accounting for regional “We’ve got quite a bit of real estate The region is also home to Ora
deposit: a discovery unique in its deposits, the Mallina project has to explore.” Banda Mining’s Davyhurst asset,
geological structure for the region, De overall reserves of 9 million ounces. Since the Hemi discovery, De where operations resumed earlier this
Grey says. “The regional deposits are all Grey says it has identified at least year, after the mine was placed on care
Led by managing director Glenn open, so we are continuing to drill for four similar intrusion targets within and maintenance in 2018.
Jardine, De Grey has raised more extensions to the Hemi deposit and, in its 1,200-square-kilometre Mallina The restart cost $45 million and is
than $150 million in the past three the near future, we’ll start drilling for tenements. expected to generate 418,000 ounces
years to develop the project, with an extensions to the regional deposits, The business is due to release over an initial five-year operational
aspirational production target of more so we can expect that resource to the results of a scoping study in the life.
Your global
productivity partner
for the mining industry
Epiroc develops and
produces innovative, safe
and sustainable drill rigs, rock
excavation and construction
equipment and tools as well
as world-class service and
solutions for automation
and interoperability.
epiroc.com/en-au
26 | Business News July 26, 2021
FEATURE
GOLD MINERS
447,300
SUPER PIT PRODUCTION,
oz
12 MONTHS TO MARCH 31
The Kalgoorlie Super Pit will operate through until 2035. Photo: Northern Star Resources
Mega merger brings gold medal home
A multi-billion-dollar merger has brought a change at the top of
Business News’ list of goldminers.
EMERGING goldminers aren’t the That was helped by the it the first local business to be ranked
only big news coming out of Western commissioning of the Gruyere joint the state’s most significant goldminer
Australia’s gold sector this year. venture with West Perth-based Gold in at least two decades.
Home to some of the world’s largest Road Resources in December 2019, That meant jumping two spots from
mines, and accounting for more than bumping up Gold Fields’ combined 2020, according to Business News’ list
a third of Australia’s total output, it output from four mines within the of WA goldminers (see page 30).
seems something of an anomaly that namesake region to 973,000 ounces. The list ranks producers based on
Jessica Mascione the operations delivering WA’s most It’s a different story in 2021, their annual output, followed by the
jessica.mascione@businessnews.com.au significant gold output have, for some however, with Subiaco-based Northern number of staff in WA.
years, been run by offshore interests. Star Resources now heading WA’s long Northern Star’s rise to the top was
Until this year, that is. list of goldminers. helped by a mega merger with Saracen
Between 2013 and 2019, US-owned The company, which recently Mineral Holdings earlier this year,
Newmont Corporation dominated the farewelled five-year chairman Bill through which it gained the Raleigh
state’s output before being dethroned Beament, produced almost 1.4 million
by South Africa’s Gold Fields in 2020. ounces in the year to March 31, making Continued on page 28
Creating
Exceptional Aeris Resources Limited
Acquisition of the Cracow Red 5 Limited
Australian Gold and
Copper Limited
$10m capital raise, demerger
Cardinal Resources
Limited
Acquisition by Shandong Peregrine Gold Limited
Outcomes
Gold Mine from Evolution $125m placement from Magmatic Resources Gold Mining (Hong Kong) Acquisition of Pilbara Gold
Mining Limited for $60m $60m entitlement offer and listing on the ASX Co., Ltd Project for $1.7m
Practical and experienced corporate lawyers and mining
sector legal specialists, working together to offer private and
publicly listed gold miners and explorers an unparalleled
understanding of the mining sector in Western Australia.
Bulletin Resources Silver Lake Resources
Limited Limited
Sale of part of the Lake Breaker Resources NL Sale of interest in the Horse Saturn Metals Limited
Resources and Energy | Corporate Advisory | Mining Tenement Management Rebecca Gold project for $20m placement Well Joint Venture for $13.7m placement and $1.9m
$5.6m $2.7m share purchase plan $1.75m private placement
July 26, 2021 Business News | 27
FEATURE
GOLD MINERS
From page 27
Finlayson-led company’s 50 per cent
share of the Kalgoorlie Super Pit,
Pit from its former North American
owners.
The asset is operated by Northern
Star’s (now) wholly owned subsidiary,
Kalgoorlie Consolidated Gold Mines.
10.4m
REGIS RESOURCES MINERAL
oz
enabling it to take full control of the It produced 447,300 oz in the 12
asset, along with the Thunderbox and months to March 31, in line with RESOURCE AT TROPICANA
Carosue Dam mines in WA. KCGM’s full-year forecast.
Last week, Stuart Tonkin was Output is expected to reach
appointed managing director of 500,000oz in FY24, followed by a That included the sale of the Darlot, The operation has a mine life of 16
the merged group, as the company steady climb to 675,000 oz from FY28. Granny Smith, and Lawlers (Agnew) years and should add around 150,000
announced Mr Finlayson would That’s supported by a resource mines to Johannesburg-based Gold oz to Red 5’s combined annual
transition to a non-executive role. update, announced in August last Fields in 2013. output.
Wesfarmers chair Michael Chaney year, which outlined an additional Today, the Darlot mine, located Meanwhile, Gold Fields produced
was appointed as non-executive chair 15-year mine life. 58 kilometres east of Leinster, is slightly more than 1 million ounces
following Mr Beament’s exit from Former joint owner Newmont owned by West Perth-based Red 5 from its four mines in the year to
Northern Star at the start of July to Corporation has dropped one spot on and accounts for all of the company’s March 31, including the St Ives
join local copper company Venturex the Business News ranking, to third annual production. operation and a 50 per cent share
Resources. place, after producing 680,000 oz from That totalled 81,600 oz in the year in Gruyere, ranking the company as
Venturex is trading at six times more its Boddington mine in the year to to March 31, placing Red 5 at 19th on WA’s second biggest goldminer.
than what it was in February, when March 31. Business News’ list. Gold Fields, although overtaken by
Mr Beament announced his decision Boddington, which officially In May, the company lowered its Northern Star, has sat comfortably
to join the company as an executive reopened in 2010, is the biggest forecast for the full 2021 year after among the state’s top three producers
director. goldmine in WA. revealing smaller-than-expected since it acquired Barrick’s assets.
That’s not a surprise, given he Newmont’s other Australian asset is output at Darlot during the March Its JV partner, Gold Road, has
brought Northern Star to its multi- the Tanami operation, located in the quarter, primarily due to labour jumped four spots on Business
billion-dollar merger with Saracen that Northern Territory. shortages. News’ list to rank WA’s 12th biggest
month. Canada’s Barrick Gold has shed its In more positive news for the goldminer, solely because of its
The deal was announced in October entire portfolio of WA assets in the company, Red 5 says it is fully funded to Gruyere stake.
2020, less than a year after Northern space of seven years, with the sale bring its nearby King of the Hills project The mine produced 264,800 oz
Star and Saracen each purchased an of its share in the Super Pit its last to production, with first gold pour in the year to March 31, split evenly
equal stake in the Kalgoorlie Super deal. expected in the June quarter of 2022. between the two operators.
Compelling Exploration Portfolio - Prospective for Gold and Ni-PGEs SPONSORED CONTENT
Tambourah Metals Ltd has
a portfolio of exploration
projects in Julimar Nth/
Jimperding region and the
Pilbara in WA.
TMB will list in August on
the ASX.
Executive Chairperson
Rita Brooks said “A highlight
of the Portfolio is the large
land holding in the Julimar
Nth Region, where Chalice
has identified a Tier 1 Ni-PGE
deposit.”
“With an experienced Board Tambourah and Cheela Gold Projects
the company has a strong
Details of the company offer are on the website and
management team to deliver
to keep up to date with the latest news on TMB subscribe
the Gold & Ni-PGE exploration
to the newsletter.
programs in WA.”
Register on the website for updates and announcements.
In the Pilbara the historic
drill results at Tambourah
Goldfield will be the focus of
www.tambourahmetals.com.au
the first drilling campaign for
Please call 08 9481 8669
TMB. Rita Brooks | Executive Chairperson
TMB Tenements with regional geophysics admin@tambourahmetals.com.au | Tambourah Metals Ltd
28 | Business News July 26, 2021
FEATURE
GOLD MINERS
flagship operation being the Nova Its position is expected to improve
nickel-copper-cobalt mine in the even further when production at
Fraser Range. Tropicana is included.
The company is ranked the state’s Regis recently revealed an
14th biggest goldminer, with its former increase in the mine’s mineral
share in Tropicana having produced resources and ore reserves, to 10.4
113,200 oz in the year to March 31. million ounces and 4.8 million
But with no other gold interests – or ounces, respectively, with further
apparent plans to purchase any – IGO investment in regional exploration
will likely drop off Business News’ list to continue, managing director Jim
in the current financial year. Beyer has said.
AngloGold Ashanti, which owns the East Perth-based Ramelius
remaining 70 per cent of Tropicana, Resources is ranked seventh on
produced 282,000 oz from its share in Business News’ list, rising from 10th
the asset in the year to March 31, along spot last year.
with 245,000 oz from its Sunrise Dam The company, led by Mark
operation near Laverton, for a total of Zeptner, produced 300,200 oz
527,000 oz. from its Mt Magnet and Edna May
Much like its South African operations in the year to March 31.
counterpart (Gold Fields), AngloGold Meanwhile, Silver Lake
has consistently ranked among WA’s Resources, Westgold Resources,
biggest goldminers, and remains and Norton Gold Fields claimed
fourth on the Business News list. eighth, ninth, and 10th biggest
To the north, Newcrest Mining’s goldminer in WA.
Northern Star has appointed Stuart Tonkin as managing director. Telfer operation produced 404,300 oz Evolution Mining sits in 13th
in the year to March 31, bumping the place, with output from its Mungari
Victorian company to fifth place. mine totaling 130,000 oz.
One joint venture to have made Subiaco-based Regis Resources for Regis Resources followed, with a Its position is expected to
recent headlines is the Tropicana $889 million in cash. combined 346,000 oz from its Duketon improve next year, with the
operation, north-east of Kalgoorlie. IGO said the sale would allow the projects – Moolart Well, Garden Well, company having recently purchased
In May, nickel miner IGO sold its company to focus on commodities and Rosemont mines – climbing one some of Northern Star’s Kalgoorlie
30 per cent interest in the mine to critical to clean energy, with its spot. operations for $400 million.
July 26, 2021 Business News | 29
FEATURE BROUGHT TO YOU BY
Data & Insights WA’S LARGEST GOLD MINERS
Ranked by WA annual production to March 31, 2021
WA annual WA annual WA annual WA annual WA annual
Change
production to production to production to production to production to
Rank
March 31, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017
Name Senior WA executive and title Mine ('000 ounces) ('000 ounces) ('000 ounces) ('000 ounces) ('000 ounces)
Jundee 283 300
Kalgoorlie (includes East Kundana 51%) 265 319
Mr Stuart Tonkin Super pit 447 112
1 Northern Star Resources 630 575 533
Managing director Carosue 221
Thunderbox 154
= 1370 = 731
St Ives 386 371
Mr Stuart Mathews Agnew 237 212
2 Gold Fields Executive vice president, Granny Smith (Yilgarn South) 261 275 879 894 945
Australasia Gruyere (50%) 132 115
= 1015 = 973
Mr Alex Bates Boddington 680 673
3 Newmont Corporation Super pit (50%)* 116 940 1,104 1,201
Senior vice president, Australia = 680 = 789
Mr Michael Erickson Sunrise 245 234
4 — AngloGold Ashanti Tropicana (70%) 282 324 635 611 524
Senior vice president, Australia = 527 = 558
Mr Sandeep Biswas
5 Newcrest Mining Telfer 404 393 452 426 386
Managing director
Mr Jim Beyer
6 Regis Resources Duketon 346 352 363 361 324
Managing director
Mr Mark Zeptner Mt Magnet 190 167
7 Ramelius Resources Edna May 110 63 197 208 125
Managing director = 300 = 230
Mr Luke Tonkin Mount Monger 147 160
8 — Silver Lake Resources Deflector 105 104 164 158 136
Managing director = 251 = 265
Meekatharra 105 104
Mrs Debbie Fullarton Cue 81 70
9 — Westgold Resources 255 253 267
Chief executive Fortnum 62 61
= 248 = 235
Mr Guozhu Qiu
10 Norton Gold Fields Paddington 186** 210 148 159 219
Executive chair
Mr Bob Vassie
11 St Barbara Gwalia 159 171 220 268 265
Managing director
Mr Duncan Gibbs
12 Gold Road Resources Gruyere (50%) 132 115 1
Managing director
Mr Jake Klein
13 Evolution Mining Mungari 130 133 121 141 214
Executive chair
14
GET THE FULL LIST ONLINE businessnews.com.au/bniq/gold-mines * Asset since sold
** Calendar year 2020
34
All information compiled using surveys, publicly available data and contact with industry sources. Other companies may be eligible for inclusion. If you believe your company is eligible,
please email: claire.byl@businessnews.com.au WND: Would Not Disclose, NFP: Not For Publication, N/A: Not Applicable or Not Available.
More Grunt!!
Rapid Crushing & Screening Contractors: The
team with the most powerful track crushing and
screening circuits in Australia
The Jonsson L160 the most powerful
track crushing machine in Australia
Tel: Perth (08) 9452 5888 / Mackay (07) 4952 3888 reception@rapidcrushing.com.au www.rapidcrushing.com.au
30 | Business News July 26, 2021
FEATURE
GOLD MINERS
Perth dealmakers are making a mint from gold IPOs. Photo: Attila Csaszar
Golden period for IPOs
More than $230 million has been raised for gold projects through
ASX listings in the past 12 months.
ST Georges Terrace has been paved with cent respectively from [December Golden days
gold for Perth’s corporate dealmakers quarter 2020],” S&P said. HLB Mann Judd partner Marcus Ohm
as the market continues to emerge from “Overall, the sector has started said there had been 61 IPOs on the ASX
COVID-19. 2021 with very encouraging signs in in the company’s tracking database in
Business News’s Data & Insights shows exploration.” the six months to the end of June 2021,
32 initial public offerings related to gold Some of the WA listings were new raising $2.8 billion.
and connected to Western Australia in companies, while others were spinouts Resources businesses were a big part
Matt Mckenzie the past 12 months, worth $233 million. of existing businesses, like Western of that, with gold dominating.
matthew.mckenzie@businessnews.com.au That’s been supported by a strong Gold Resources from GWR. Growth in IPO volumes had been
gold price during the uncertainty of Many were focused on gold in partly driven by gold floats, Mr Ohm
the pandemic, and investors’ growing combination with other commodities, said, with macro factors contributing.
willingness to put cash towards including copper. “The gold price benefited from the
exploration. Among the biggest deals linked pandemic and being a safe-haven
The gold price has been consistently
to WA were Iceni Gold, raising $20 asset,” he said.
close to $US1,800 an ounce in recent
million, Lunnon Metals ($15 million), However, new supply had since come
months, after peaking at more than
and Barton Gold ($15 million). online, while the economic rebound
$US2,000/oz last year.
Those first two deals alone were and reduction in COVID-19 uncertainty
To put that in context, gold had been
“
set to earn underwriters Morgans would mean demand could soften a
as low as $US1,100/oz in late 2015, and
and EurozHartley nearly $1.9 million
There have below $US500/oz at the turn of the
combined.
little.
century. “They [economists] are forecasting
been a lot of small The three quarters to March 2021
Assuming a similar fee structure for
other lead managers, the IPO gold rush
the gold price to come down five per
were the highest-spending quarters cent per annum over the next few
gold explorers for gold exploration in WA of all time,
would be expected to reap about $11 years,” Mr Ohm said.
unadjusted for inflation, according to million for Perth’s corporate financiers. “A lot of the [exchange traded] funds
popping up with Australian Bureau of Statistics data. Iceni shares lifted almost 50 per cent in the past three to six months have
The total spent was $776 million up from their 20-cent issue price when been getting out of gold as the market
their hand out across those nine months. they started trading in April, although settles.
In June, analysts S&P said there had they had fallen to 15 cents at the time “If you take a broader time horizon on
- Mat Collings been more copper and gold projects of writing. the gold price …. it’s levelled off a bit.
drilled internationally in the first The company’s main target is the 14 “But if you go back a few years, it
quarter of 2021 than for any comparable Mile Well project near Laverton. was around the $US1,000 to $US1,100
period since they began tracking Lunnon has lifted from 30 cents an ounce mark.
drilling data in 2012. when it hit the bourse in June to be “We’re still up around $US1,800 an
“Gold and copper projects drilled 48 cents at the time of writing; it has ounce now.”
increased by 34 per cent and 91 per interests near Kambalda. Continued on page 33
July 26, 2021 Business News | 31
SPONSORED CONTENT
Decarbonisation – let’s get serious
*Adam Gangemi is a geophysicist and holds an MBA. He
is one of a new breed of young professionals committed CASE STUDIES
to sustainable energy and carbon reduction solutions. Energy Substitution | Hybrid Power System
He has worked extensively in the development and Challenge - Client engaged Super Smart Energy to review current diesel consumption and identify areas
management of energy reduction solutions and projects. to reduce costs
He started Super Smart Energy in 2018 to support WA
mining and industrial companies. Visit supersmart.energy
Cost Savings C02 Emissions Return on Investment
$2.5M Reduced 7,074 tpa 4 Years
A ustralian mining and industrial sector
companies are increasingly committing to
and promoting efforts to reduce carbon emissions
Energy Efficiencies | Ventilation on Demand
Challenge - Client engaged Super Smart Energy to review energy consumption on site and to identify
areas to reduce costs
– and it’s not only major players signing up to
decarbonisation.
Driving a surge in decarbonisation planning, Cost Savings C02 Emissions Return on Investment
$978,688 p.a. Reduced 2,447 tpa 4 Months
particularly in the mining and industrial sectors, are
environmental, regulatory, compliance, and cost
Greenhouse Gas Emissions | Electric Vehicle Strategy
efficiency factors, with further pressures on the
Challenge - Client requested a strategic assessment of the timeline and budget impact involved in upgrading
investor, social license and corporate brand and all fleet vehicles
integrity fronts.
Many small to medium sized miners and mining
service companies are now proactively pursuing Cost Savings C02 Emissions Return on Investment
$3.4M Reduced 3,300 tpa 6 Years
overarching strategies tackling air quality, emissions
and reporting, offsets, energy reduction strategies
and technological solutions.
At a practical level, a decent decarbonisation decarbonisation objectives undoubtedly reap storage facilities into its energy supply mix; or Rio
strategy can help companies to: environmental, compliance, brand and reputation and FMG’s separate announcements spanning solar
• Manage risk rewards, they also benefit from massive cost farms and large-scale battery storage at some of
• Innovate for growth savings. their mining operations in Western Australia,” he said.
• Achieve significant cost savings “As a general rule of thumb, energy is one of the “We increasingly work with small to medium
• Attract talent and new business top spends for all mining companies,” he said. sized companies including gold miners, on feasibility
• Build brand and reputation. “Decarbonisation roadmaps that focus on studies, audits and assessments, and tactics
Super Smart Energy is a mining and industrial improved energy efficiency and implement low- to achieve practical cost and energy savings,
advisory specialising in decarbonisation, energy, and carbon and renewable energy options where which also ultimately helps to meet broader
asset optimisation solutions for companies of all sizes. possible, can save millions and provide quick turn- decarbonisation objectives.”
With specific gold mining experience, Super around return on investment. Mr Gangemi said that in today’s world,
Smart Energy offers decarbonisation plans and “Australian companies actively reducing decarbonisation efforts also paid off in terms
strategies, energy audits and project planning to greenhouse gas emissions are incentivised with of attracting and protecting human capital and
unearth and implement innovations for both cost carbon credits under the Federal Government’s reinforcing supply chain appeal.
savings and emission reductions. Emissions Reduction Fund, and under another “Various surveys and industry experience
“More companies are now pursuing net zero Federal program Super Smart Energy can assist confirm that in-demand employees prefer to work
emission agendas using science-based reduction clients to apply to have decarbonisation strategies for, and supply companies prefer to work with,
targets or integrating renewable energy strategies developed and rolled-out with funding via an agency companies that take demonstrable steps to work
into their energy mix,” says Adam Gangemi, Super study.” sustainably and responsibly – and that positively
Smart Energy Managing Director. Mr Gangemi stresses the importance of boost reputation by association,” he said.
“That is partly driven by compliance and decarbonisation strategies that are both ‘fit for
regulatory frameworks and reporting, and also in purpose’ and fit for individual companies, their
response to anticipated government policy across size, speciality mining areas, brand integrity and
net zero and renewables targets, and on the back of reputation.
international focus.” “Not everyone’s efforts can or need to be on a
But that’s not the whole story, according to Mr scale of BHP and its recent signing of a 15-year deal
Gangemi, who says while companies that implement with Southern Cross Energy adding solar, wind and supersmart.energy
32 | Business News July 26, 2021FEATURE
GOLD MINERS
From page 31 WA-linked IPOs with gold interest Consequently, gold IPOs might
start to slow down, with the peak of
Capital Capital
Company to be Company to be listings potentially having passed.
It’s been an easy time for gold raised raised Exploration and spending could be
hopefuls to raise capital. Iceni Gold $20m Errawarra Resources $6m yet to peak, however.
However, the cash injection to “There’s been some companies with
Lunnon Metals $15m Kingfisher Mining $6m
drilling will lead to challenges with good ground, good prospects, they need
equipment, labs, and workers. Barton Gold $15m Techgen metals $6m to get their skates on.” Mr Collings said.
Medallion Metals Attention will turn to how the dozens
Getting digging $12.5m Askari Metals $5.8m
of hopefuls that have secured funding
Morgans research analyst Mat Australian Gold and Copper $10m Western Mines Group $5.5m will get their projects off the ground in
Collings said explorers had been Torrens Mining $10m Australasian Gold $5.5m an extremely competitive market.
successful in raising money. “There have undeniably been a lot
Siren Gold $10m Metal Hawk $5.5m
“There have been a lot of small gold of IPOs, the challenge now seems to be
explorers popping up with their hand Miramar Resources $8m Torque Metals $5.5m delivering results,” Mr Collings said.
out,” Mr Collings told Business News. Codrus Minerals $8m Prospech $5m “The challenge for all of them is to
“The gold price [is very helpful] … keep the market interested, there are
Caspin Resources $8m Albion Resources $5m
the enthusiasm for gold as a hedge so many of them.”
against inflation, with the uncertainty Auric Mining $7.3m Ozz Resources $5m Some were struggling to get drill
since the start of 2020. Mamba Exploration $7m Monger Gold $5m results processed through labs rapidly,
“And the Australian dollar has because of high demand.
Western Gold Resources $7m BPM Minerals $4.5m
strengthened, but not as much as we Experienced drillers are also in high
saw during the GFC. Megado Gold $6m Peregrine Gold $2.5m demand, with Mr Collings saying there
“There’s general interest in the Pathfinder Resources $6m Benz Mining $2m was an emerging shortage of skilled
sector. operators for the most difficult drilling
Rincon Resources $6m
“Gold outperformed … in my view.” projects.
The exchange rate is an important Data from the federal government
factor, because it determines how While the exchange rate has lifted a of the competitive benefit for exporters shows 309 job vacancies for drillers
much local producers earn from little, the impact has not been substantial from high prices. and shotfirers in WA in June, down
selling into international markets. enough to counteract the benefit of the Mr Collings said investors were trying from more than 330 in March and up
A lower Australian dollar will help higher US dollar gold price. to assess where the gold price would about 20 per cent from mid-2020.
exporters earn more revenue in local During the previous resources boom, eventually settle, but that expectations Similarly, there were 168 vacancies
terms and enable them to be more the Australian dollar rose above parity of further rises had cooled somewhat. for geologists and geophysicists in
competitive. with the US dollar, which reduced some “It feels like it’s stabilised,” he said. June, up from 64 a year earlier.
SPONSORED CONTENT
at the forefront of innovation “We recognise that a FIFO
in the FIFO sector and evolved worker’s journey starts with
its offering in line with indus- their flight, so a positive ex-
try requirements,” said Dean perience can directly improve
Brennan, Cobham’s Managing morale and lessen fatigue. Ini-
Director of Regional Services. tiatives we have taken on this
“For instance, in the 2000s, front include the introduction
in an Australian-first, Cobham of a mobile check-in applica-
commenced jet FIFO services tion and real-time integration
to unpaved airstrips following with customer travel and ac-
in-house modification of sev- commodation management
eral BAe 146 jets with “gravel systems. We are always look-
kits” that protected the under- ing at ways to improve the
carriage and airframe during passenger experience,” said Mr
take-off and landing.” Brennan
As times change and a focus By prioritising the comfort
on sustainability comes to the and convenience of FIFO pas-
fore, Cobham is progressively sengers and clients, Cobham
modernising its fleet. Regional Services has po-
“Cobham has introduced the sitioned itself as a leading
Embraer 190 jet and Q400 tur- transportation service in the
boprop for flexibility of rosters, industry.
Catch the Cobham team at Diggers & Dealers in Kalgoorlie during the first week of August.
suitability for different aero- Operating from its own pri-
dromes, increased reliability, vate terminal, Cobham has
and the lowest carbon emis- the flexibility to support short
Cobham goes for gold sions,” said Mr Brennan.
Current gold mining clients
notice shutdown flying and re-
spond swiftly to the impacts of
include Northern Star, Dacian the COVID-19 pandemic.
Gold, Red 5, Westgold and Wi- “At Cobham Regional Ser-
By Gabi Mills gold-flecked rocks around Kal- ments. Often delivering employ-
luna Gold and as their roster vices, as we increase our fleet
For a quarter of a century, goorlie, Leonora and surrounds. ees to remote and inaccessible
of gold miners grows, so does and capacity, we’re focusing on
Cobham has provided char- As market demand fluctuates mine sites, Cobham is able to their commitment to increas- increasing our footprint in the
ter services to diverse mining for aviation services, Cobham do so thanks to an innovative ing reliability when it comes Goldfields,” said Mr Brennan.
companies, from the iron ore- has always remained a nimble approach to adapting their fleet to transporting workforces
rich veins of the Pilbara, the gas supplier, able to adapt accord- according to local conditions. around the Goldfields and be-
fields of Barrow Island, to the ing to their clients’ require- “Cobham has always been yond.
July 26, 2021 Business News | 33Data & Insights
Showing 6 of 1,329
Afterpay, Zip crash but ASX
closes higher
down 0.54 per cent to $7.35. Gold miner
Bellevue Gold has been offered …
Askari Metals appoints contractor
Gold
for maiden gold drill program in WA
the south of ASX mid-tier gold miner Ramelius
Resources’ Edna …
Miners
Twenty Seven Co delivers new
WA gold targets
where the mid-tier Australian gold miner is
mining 1.8-to-2 g/t dirt …
Askari Metals stalks WA copper
SPECIAL REPORT
and gold on ASX listing
the south of ASX mid-tier gold miner Ramelius
Resources’ Edna …
Economic boom casts rates cloud
over ASX
four banks traded lower. Gold miners were one
of the better parts …
Drilling provides broader leads for
Estrella at WA nickel find
nickel boom by Kalgoorlie gold miner Great
Boulder but after a …
businessnews.com.auYou can also read
