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31-Jan-2025: Quarterly Report (December Qtr, FY25)
EMR up over +3% today already (at 2:30pm) and up by around +33% in January (1 month) based on a closing price on December 31st 2024 of $3.25 and an intra-day-high SP of $4.32 today (so far).
And they were as high as $4.41 briefly in October, so they've been up here before.
Here are the other two positive newsflow releases from Emerald during January:
06-Jan-2025: Record-Quarterly-Gold-Production-of-319Koz-at-Okvau.PDF
28-Jan-2025: Emerald Continues Exploration Success.PDF
Disc: I hold EMR in my SMSF as well as here. They are currently producing gold at Okvau in Cambodia, and they are developing a WA gold project as well which looks very promising, and they have been finding enough new gold in Cambodia to suggest they will be able to get a second Cambodian gold mine operating over the next few years.
The most important thing to note about Emerald is that their MD, Morgan Hart, and his executive team and their Board are experienced with succesfully getting gold projects up and running on-time and on-budget, or better, including in West Africa and Western Australia, and now also in Cambodia.
Many of them were together back in the Equigold days - Equigold was acquired by Lihir in 2008 after Morgan Hart and his team at Equigold had established the Mt Rawdon mine in Queensland and the Bonikro gold project in Ivory Coast (Côte d’Ivoire), West Africa, then Lihir itself was acquired by Newcrest Mining, which was later acquired by Newmont Goldcorp, the world's largest gold mining company. That Equigold team went on to establish Regis Resources (RRL) back in the early days when they built multiple profitable gold mines at Duketon in WA from scratch.
Most of the smarter people from early RRL (Regis) ended up at either Emerald (EMR) or Capricorn Metals (CMM) and both EMR and CMM have done very well, which has a lot to do with the relevant past experience of their senior management teams and Boards.
CMM look fully priced to me up here, so I no longer hold any in real-money portfolios, just a small position here, however EMR has been trading at a discount relative to their peers due to the perceived risk of operating in Cambodia. Perhaps not so much now after a +33% SP rise in January... But that's why I've been holding EMR in my Super portfolio and not CMM - both are great companies with excellent management teams who know gold mining very well, but EMR had more upside (IMO) due to their lower share price relative to my estimate of their intrinsic value; my opinion only of course - and I've clearly been wrong before - and will be again.
The Australian sharemarket (as measured by the XJO; the ASX200 Accumulation index - a.k.a. Total Return index) hit another new all-time high today, and the ASX will likely close at a new all-time high today, while the Australian Dollar gold price made another new all-time high today as well:
Source: https://goldprice.org/
So, there's an argument to be made that there is substantial downside from here if the gold price falls significantly, but if you're bullish on gold, as I still am, then you could do worse than holding EMR. I wouldn't be adding to a position or buying a new position in EMR up here myself; I'd rather wait for a decent pull-back, and if you look at their chart you'll see that their share price can be very volatile so we do get plenty of pullbacks. Patience will be rewarded!
Disc: Holding.
P.S. Money of Mine was back online this week by the way.
21-Sep-2021: Okvau Gold Mine Ramps Up to Full Production
HIGHLIGHTS
- Commissioning of the Okvau gold plant complete with ramp up of operations to full production
- Over 19koz gold produced to date including ~12koz gold poured
- Gold shipments to the refiner commenced in July 2021
- Gold production to end of Quarter 2021 on track for ~23koz (inclusive of gold in circuit)
- Process plant throughput 10% above DFS targeted nameplate rate of 2.0Mtpa
- Sulphide ore production for the first 15 days of September has averaged 420 ounces per day recovered, confirms plant is capable of +100koz p.a. gold production
- Grade control and mill production showing a strongly positive reconciliation to reserve for fresh rock sulphide ore and oxide ore
- Sulphide ore gold recoveries consistent with expected recoveries for the areas mined (~82%). Life of mine recoveries remain in line with the DFS of ~84%
- Mining operations are on schedule and in line with milling requirements, meeting all ore and waste feed requirements
- AISC materially on budget with guidance for remainder of FY2022 in line with DFS forecasts at 25-30koz per quarter at cash costs in a range of US$720 – US$780/oz
Emerald Resources NL (ASX: EMR) is pleased to advise that it has completed ramp up activities at its 100% owned 2.0Mtpa Okvau Gold Mine. The management team will continue to focus on optimising the performance of the Okvau Gold Mine.
Emerald’s Managing Director, Morgan Hart, said:
“It is pleasing to announce that we have achieved the successful ramp up of operations to full production at the Okvau Gold Mine which now places Emerald in the ranks of a 100,000+ ounce per annum gold producer."
"Importantly we are either meeting or exceeding the Okvau Gold Mine DFS1 which is a testament to the skill and quality of our staff and contractors in light of the significant challenges of the global pandemic and commissioning and ramp up activities during the recent wet season."
"We look forward to positive cash flows from the Okvau Gold Mine providing the opportunity to grow the Company through exploration and acquisition. Notably with environmental approvals recently granted at the Memot Project, our exploration is scheduled to commence on a maiden drilling campaign in the near term.”
--- click on the link at the top for the full announcement, with photos ---
Disclosure: I hold EMR shares in RL and in my SM portfolio. They have some impressive experience and prior track records in terms of management, key personnel and their board, and they have MACA (MLD) doing their contract mining for them - I also hold MLD shares. I don't normally go for gold producers with a single mine, especially if it's located outside of Australia. Okvau is in Cambodia. However, I'm backing the management and board in this case.
The ramp-up has been excellent - with no real issues having impeded it. Their costs should be world-class (i.e. low). This is shaping up as an excellent project, and one that I think a few larger gold producers would now be casting an eye over in terms of Okvau being a possible bolt-on acquisition for them at some stage.
I think we're in for a period of consolidation within the industry, so I'm expecting M&A, I just don't know who and when. But if you hold shares in the best producers, both established and emerging, it's a good start.
24-June-2021: Maiden Gold Pour at the Okvau Gold Mine
Emerald Resources NL (ASX: EMR) (“Emerald”) is pleased to advise that it has commissioned the gold room and poured first gold at its 100% owned 1.14Moz Okvau Gold Mine.
Two gold bars weighing a combined 8.6kg were produced during the three day commissioning of the gold room.
Emerald’s Chairman, Simon Lee AO, said: “I share absolute pride and the sense of achievement with our unwavering staff, trusted contractors and suppliers in Australia and Cambodia who have battled unprecedented challenges to remain categorically focused on meeting our target of commissioning and first gold production from the Okvau gold mine on time and on budget.”
“This could not be achieved without the leadership of our experienced executive and management team led by Managing Director Morgan Hart and Executive Director, Mick Evans and the support from the Government of Cambodia and its people. We are truly lucky to operate in a country steeped in traditions and wonderful people.”
Emerald’s Managing Director, Morgan Hart, said: “The first gold pour is a major milestone for both the Company and for Cambodia as the project becomes the first modern large scale mine to operate in the country. This marks the creation of a new industry for Cambodia bringing opportunities and benefits for the people of Cambodia.”
“Construction activities have remained on budget and the first gold pour has remained on schedule despite the logistical challenges brought on by the global pandemic. It is a testament to the skill and experience of the team we have assembled on site throughout this process."
"First gold doré production at Okvau is a significant achievement for Emerald, as whilst it continues commissioning activities ramping up to full production, it has successfully transitioned to the ranks of an international gold miner.”
Project Update
Commissioning activities at Okvau are well advanced and have initially focussed on the processing of oxide ore from crusher to the SAG mill, and through the CIL tanks, stripping circuits and detox circuit. The focus will now shift to commissioning the fine grind float circuit and adding higher grade sulphide ore to the process plant over coming weeks as the Okvau Gold Project ramps up to full production.
The Company maintains its guidance that the production at the Okvau Gold Project is forecast to be 100,000oz to 110,000oz per annum in line with the Company’s Definitive Feasibility Study releases on 1 May 2017 and subsequently updated on 26 November 2019.
[I hold EMR shares.]
8-June-2021: First Ore Feed and Commencement of Wet Commissioning of Okvau Gold Plant
- Crushing Circuit and Processing Plant in start-up wet commissioning phase in advance of maiden gold pour this month
HIGHLIGHTS
- Crushing circuit commissioned and stockpiling crushed ore
- First ore feed to the processing plant and wet commissioning commenced
- Okvau substation energised and fully operational
- Tailings Storage Facility (Stage 1) completed and ready for tailings discharge
- 245,000 tonnes of ore on the ROM
- Ramp up of gold in circuit allowing for maiden gold pour this month
Emerald Resources NL (ASX: EMR) is pleased to advise that it has commenced crushing activities, delivered the first ore feed to the Mill and has commenced wet commissioning of the Processing Plant at the Company’s 100% owned 1.14Moz Okvau Gold Project in advance of the maiden gold pour this month.
Emerald’s Managing Director, Morgan Hart, said:
“The first ore feed and commencement of wet commissioning of the Okvau Gold Project is a significant milestone for the Company and represents the exceptional efforts by our experienced construction and development team with co-operation from our quality contractors and global suppliers.”
“The Project has remained on budget and on schedule despite the logistical challenges brought on by the global pandemic and is a testament to the skill and experience of the team we have assembled on site throughout this process.”
“Construction activities are nearing practical completion and open-pit mining has delivered over 245,000t of predominantly oxide ore on the ROM pad. The oxide feed is being used to wet commission the SAG Mill and leaching circuit for the first few weeks of operation allowing a ramp up of gold in circuit in advance of the maiden gold pour this month. Hard rock, sulphide feed will be added to the circuit in the coming weeks to commission the float regrind circuit.”
[I hold EMR shares.]
30-Apr-2021: Quarterly Activities Report
Quarterly Report for the period ended 31 March 2021
Highlights
Development Activities - Okvau Gold Project
- Okvau Gold Mine Development continues to be “On Time-On Budget”;
- Overall project construction is nearing practical completion;
- Aspects of project commissioning expected to commence in May 2021;
- First gold production expected before the end of current Quarter;
- Earthmoving activities continued in line with project schedule with first ore delivered to ROM and first blasting during the Quarter. [MACA (ASX:MLD) have the earthmoving and mining contract at Okvau]
Exploration – Near Mine and Regional Licences
- Okvau Gold Project - High grade intersections continue to support structural feeder zone interpretation;
- Environmental assessment progressing on highly prospective Memot Project. Preliminary rock chip sampling undertaken including 40.4, 27.3, 23.6 and 13.7 g/t Au;
- Significant gold-in-soil Auger soil sample results from infill programme on the previously announced O’Kapai Prospect (O’Kthung Licence) including 1,000 and 434 ppb Au.
Funding
- Consolidated cash at 31 March 2021 was approximately A$47 million;
- Emerald remains fully funded to develop the Okvau Gold Project with additional contingency.
COVID-19
- The commitment and dedication of the Company’s construction and operational workforce has limited the impact of the COVID-19 pandemic to a level that to date has not delayed the project from forecast or increased costs materially;
- Travel between Australia and Cambodia continues to be restricted but is being managed through longer rosters and regional sourcing and the dedication of key employees on site at Okvau;
- Uncertainties around international freight have now been largely overcome with in excess of 95% of all equipment on site, approximately 4% in transit and less than 1% remaining to be shipped.
Commenting on the Quarter ended 31 March 2021, Emerald’s Managing Director, Morgan Hart, said:
"The global pandemic has continued to present challenges during the Quarter. However, our suppliers, logistics team and construction crew have worked safely and efficiently so that we are now in the final stages of construction of the Okvau Gold Project and expect to deliver first gold production prior to the end of the current quarter.”
“The expected first gold production will mark a significant milestone for Emerald and herald a new chapter for the Company as a +100,000 ounce per annum gold producer with an average LOM AISC of US$754/oz. First gold production at Okvau represents the first step in the Company's stated strategy to become a multi-mine gold producer."
--- click on the link at the top for the full report ---
[I hold EMR shares. I have shares in a number of gold producers, plus a small handful of project developers, and Emerald Resources is the ONLY gold project developer I hold who has a project located outside of Australia. I am backing their very experienced and well-credentialed management team, who have sensibly partnered with the Cambodian government to ensure favourable treatment in-country (or at least to hopefully ensure they do not get seriously rogered). Their grades at Okvau are outstanding.]
