Emerald Resources’ Okvau Gold Mine produces 29,000 ounces of gold in December quarter

About Emerald Resources

Emerald Resources NL (Emerald, the Company, ASX:EMR) has its headquarters in Perth and has been listed on the ASX since July 1994. The Company is a developer and explorer of gold projects with the Company’s key project being the Okvau Gold Mine in Cambodia which has been in full production since September 2021. The Company’s other Cambodian project is the high-grade Memot Gold project. Emerald’s interest in Cambodia extends over a combined area of about 1239 square kilometres.

Emerald also has a 76 percent controlling interest in Bullseye Mining Limited, an unlisted Australian public company with two Western Australian gold projects totalling more than 1200 square kilometres of highly prospective gold tenure including the North Laverton Gold Project in the Dingo Range Greenstone Belt.

Directors and management own 20 percent and institutional investors own 47 percent of Emerald Resources.

Okvau Gold Mine produces 29,000 ounces of gold in December quarter

Emerald Resources remains firmly on track to meet its 2024 financial year production guidance after its 100 percent owned Okvau Gold Mine delivered production for the December 2023 quarter of 29,184 ounces. This compares to 2024 production guidance of 25,000 to 30,000 ounces of gold per quarter.

Okvau is one of the world’s highest margin gold mines with production costs at an All In Sustaining Cost (AISC) of US$788 per ounce to September 2023. Gold sales are currently averaging about US$1,983 per ounce, which is above the US$1,918 per ounce achieved in the September 2023 quarter.

Okvau is currently generating operating cash flow above US$80 million annually and over its mine life since pouring its first gold bar in June 2021 to date has earned A$126 million operating profit after tax and generated cash of A$148 million. Significantly, the existing eight-year estimated mine life may be extended with ongoing drilling having the potential to increase Mineral Resource and Reserves beyond the current estimate.

Current FY24 production guidance is for 100,000 ounces at an AISC of US$780 – US$850 per ounce.

Bullseye Mining Limited

Emerald currently owns 76 percent of Bullseye Mining Limited (Bullseye) and the offer to buy the remaining 24 percent is unconditional. Emerald and Bullseye have in place a Bid Implementation Agreement in which Bullseye directors have unanimously recommended that Bullseye shareholders accept the Offer.

Bullseye owns 3 Western Australian gold assets of which the most advanced project is the North Laverton Gold project which is in one of the world’s richest and most established gold regions.

The Future

Emerald Resources has A$137 million in cash and bullion at 31 December 2023, an increase of A$28   million since September 2023. Current gold production is unhedged.

Earnings growth in addition to Okvau, is likely to be sourced from the 100 percent owned Memot Gold Project in Cambodia and the North Laverton Gold Project (Laverton) in Western Australia held through its 76 percent stake in Bullseye Mining. The North Laverton Gold Project is one of the few remaining under-explored greenstone belts in Western Australia and its next Resource calculation is expected to be released in the weeks ahead. This will be the first since Emerald gained control of Bullseye Mining. Emerald aims to commence development activities at Laverton in 2024. The Memot Gold Project is a potential high-grade operation in Cambodia and Emerald aims to commence development activities at this site in 2025.

These additional projects represent an organic pathway for Emerald to become a multiple mine, 300,000 ounces per annum gold producer without any further dilution to shareholders. This clear pathway should support positive shareholder returns over the medium to long-term.