Discover Aussie gold’s new class

As prices rebound, a new breed of Aussie gold producer emerges. Here are six small to mid-tier companies to watch

REUBEN ADAMS

Gold prices continue to rally in 2023, edging towards US$1930 per ounce by late January. That’s close to a record high in Aussie dollar terms.

Here are six small to mid-tier miners in or near production who could benefit from an emerging gold boom.

CALIDUS RESOURCES (ASX:CAI)

Production: 105,000oz pa

CAI announced commercial production at its Warrawoona gold project in the Pilbara earlier this month.

In December, the company delivered 5053oz of gold at unaudited cash costs of $2050/oz. For the final third of the month the gold room delivered 235oz a day, equivalent to a rate just over 85,000 ounces per annum.

CAI poured its first gold in May 2022, but faced two major COVID outbreaks in September, restricting material movement and ore production.

TEN SIXTY FOUR (ASX:X64)

Production: 84-89,000oz pa (FY23)

In FY23, this unhedged gold producer expects to produce up to 89,000oz at all-in sustaining costs (AISC) of US$1320-US$1370/ oz from its Co-O operation in the Philippines.

Co-O has been continuously producing gold for more than a decade, hitting the 1 million ounce milestone in 2020.

X64 says the narrow, highgrade orebody continues below current reserve limits and remains open at depth. A US$54 million infrastructure project called the Tigerway Decline will set-up the Co-O operation for the next decade, the company says.

ORA BANDA MINING (ASX:OBM)

Production: 56-61,000oz pa (FY23)

OBM has historically struggled to make a go of its troubled Davyhurst gold operation near Kalgoorlie, but the tide could well have turned. Davyhurst produced 61,000oz in FY22, though operational issues affected overall performance. These issues prompted the company to initiate a strategic review and ‘reset’ of its operations early in 2022.

In July, OBM secured the services of a new chief executive, Luke Creagh, a veteran mining engineer who most recently served as chief operating officer at Northern Star Resources (ASX:NST).

OBM is aiming to produce up to 61,000oz at AISC of $2175/oz$2275/oz in FY23.

BEACON MINERALS (ASX:BCN)

Production: 24-28,000oz (FY23)

BCN is one producer taking advantage of the higher gold price, with the company locking in 6000oz of forward sales with Swiss firm MKS, hedged at an average net gold price of $2729/oz.

That represents 70% of its budgeted production from February to April.

Renowned for its links to WA’s historic gold capital KalgoorlieBoulder where it is based on the site of an 80s era gold refinery, BCN’s Jaurdi project near Kalgoorlie produced its first tonne of gold in December 2020.

A strong performance allowed the company to pay off its debts in October 2021.

In the December 2022 quarter, 6317oz was sold at an average price of $2633/oz for sale receipts of $16.63 million.

PANTORO (ASX:PNR)

Production: 108,000oz pa (FY23)

PNR and JV partner Tulla Resources (ASX:TUL) have completed their mission to revive the Norseman gold mine, one of the historic operations of the WA Goldfields.

Norseman was the longest continuously operating gold mines in Australia when it shut in 2014 after 79 years.

Located in a 5.5Moz gold field, the project contains a mineral resource of 4.7Moz and an ore reserve of 900,000oz, with plans to produce 108,000oz pa over an initial sevenyear mine life.

Weekly gold shipments have continued since the first gold pour on 13 October 2022, with ~7300oz produced during the ramp up through January 4.

Full production rates are expected to be achieved during the forthcoming quarter, and a takeover whereby PNR will move to 100% ownership of the operation is in discussion.

■ Surging gold prices into the new year have reinvigorated a sector which experienced a fluctuating 2022.

■ Gold is historically regarded a safe-haven asset – a store of value considered relatively low risk that has appealed in times of turmoil and volatility throughout the ages.

NAVARRE MINERALS (ASX:NML)

Production: 45,800oz pa (FY22)

NML acquired the 1Moz equivalent Mt Carlton gold mine from major producer Evolution Mining (ASX:EVN) in mid-December 2021 for an upfront cost of $40 million. It sold 5592oz of gold, 41,713oz of silver and 177t of copper in the September quarter at a high AISC of $3539/oz.

NML says these numbers will improve in the second half of FY23 as the operation introduces new, higher grade open pit ore from the satellite Mt Carlton United deposit.

■ Recent interest rate rises around the world combined with geopolitical uncertainty and much-publicised issues with cryptocurrency exchanges as an alternate store of wealth, are said to have contributed to gold’s recent price rise.

■ With the local currency helping its case, a number of experts predict big things for the yellow metal in Australia in 2023 and beyond.