AWJ
Auric Mining Limited
ASX
2023 Annual Report to Shareholders
Sentiment:
Annual Report
18 April 2024 11:14 PM
Auric Mining's 2023 Annual Report highlights the company's transition to a gold producer, generating $10 million in surplus cash from Stage One mining at Jeffreys Find and advancing the Munda Gold Project towards production.
Better than expected
The company reported a profit after income tax expense for the year attributable to the owners of Auric Mining Limited of $1,313,644 compared to a loss of $1,106,692 in the prior year.
Summary
- Auric Mining's 2023 Annual Report showcases the company's emergence as a micro-cap Rising Resource Star, having sold almost 10,000 ounces of gold.
- The company generated $10 million of surplus cash from Stage One of mining Jeffreys Find, with Auric receiving $4.77 million.
- Auric is advancing its flagship asset, the Munda Gold Project, with 361 holes drilled in a grade control drilling program.
- The company intends to mine a starter pit at Munda in late 2024 or early 2025 before expanded mining takes place.
- Auric believes it can double gold production in 2024 and generate substantial cash surpluses with a surging gold price.
- The company is focused on becoming a substantial gold producer through mining, exploration, and strategic acquisitions.
- Auric withdrew from an option agreement in September 2023, managing 34 tenements covering 283 km2 at year's end.
- A scoping study for open pit mining at Munda highlighted a positive outcome, with mining contemplated over approximately 3 years.
- Working capital requirements of approximately $3.9M to $8.1M were estimated based on a Stage 1 starter pit design.
- The company maintained insurance policies indemnifying directors and officers.
- The company issued 4,000,000 options as part of the corporate advisory services.
Sentiment
Score: 8
Explanation: The report is generally positive, highlighting the company's transition to a gold producer, successful mining operations, and future growth plans. The financial results show a significant improvement compared to the previous year.
Positives
- Auric Mining has transitioned to a gold producer, generating revenue from mining operations.
- The company generated $10 million of surplus cash from Stage One of mining Jeffreys Find, with Auric receiving $4.77 million.
- 99% conversion of March 2024 options generated $2.6 million in additional capital.
- The company is self-funding for the immediate future.
- The Munda Gold Project is advancing towards production with a grade control drilling program.
- Auric has access to mining infrastructure, support services, contractors, and an experienced workforce near its projects.
- The company believes it can double gold production in 2024.
- The company reported a profit after income tax expense for the year attributable to the owners of Auric Mining Limited of $1,313,644 compared to a loss of $1,106,692 in the prior year.
Negatives
- Auric withdrew from an option agreement in September 2023, reducing the number of tenements managed.
- An impairment charge of $1,531,994 was recognised in the Statement of Profit or Loss and Other Comprehensive Income relation to exploration and evaluation during the year.
Risks
- Mineral exploration is a high-risk undertaking, and there is no assurance that exploration will result in the discovery of an economic mineral deposit.
- Future exploration activities may be affected by geological conditions, seasonal weather patterns, and operational difficulties.
- The company's tenements may include restrictions, and there is no assurance that the company will be able to satisfy such conditions.
- The development of one or more of its projects may require the Consolidated Entity to raise capital.
- Regulatory risks exist regarding the grant or renewal of tenements.
- The company is exposed to exploration risk, regulatory risk and future funding risk.
Future Outlook
Auric Mining aims to become a substantial gold producer through mining, continued exploration, and strategic acquisitions, with a focus on getting the Munda project into production and doubling gold production in 2024.
Management Comments
- The Company is now self-funding for the immediate future.
- Our mindset is that we are no longer explorers we are gold producers.
- We believe we can double gold production in 2024 and with a surging gold price generate substantial cash surpluses in 2024.
Industry Context
Auric Mining operates in the Goldfields of Western Australia, a region known for its mineral projects and mining infrastructure. The company's focus on gold production aligns with the increasing demand for gold as a hard asset.
Comparison to Industry Standards
- The report mentions that Auric received $4.77 million from the Jeffreys Find project, and the chair states 'I cannot recall another junior company achieving this in such a short amount of time. Indeed the order of 5% or less.'
- The report does not provide enough information to make a detailed comparison to industry standards.
- A more detailed analysis would require comparing Auric's production costs, resource estimates, and exploration results to those of its peers in the region, such as Northern Star Resources, Gold Fields, and Saracen Mineral Holdings.
Stakeholder Impact
- Shareholders can expect potential returns from the company's gold production and future growth.
- Employees benefit from the company's success and expansion.
- Customers and suppliers are involved in the mining operations and related activities.
- Creditors are impacted by the company's financial performance and ability to meet its obligations.
Next Steps
- Further refine the resource model and re-optimise the model using recently obtained costings from reputable mining contractors.
- Generate a revised starter pit design for mining in late 2024 or early 2025.
- Continue to progress the development of our main asset, with the focus on getting Munda into production.
- Advance our ambition to become a substantial gold producer via mining, with continued exploration activity, or by strategic acquisitions.
- Participate at our Annual General Meeting on 24 May 2024.
Key Dates
- June 2021: Auric holds the rights to gold on tenements in the Widgiemooltha and Spargoville areas that were acquired from Neometals Limited.
- 28 January 2022: Increase in Estimated Resources at Munda and Reclassification from Inferred to Indicated.
- February 2023: An RC grade control program was completed at Jeffreys Find.
- February 2023: Three holes from a planned eight-hole RC program were completed at the Miitel South Prospect.
- 13 April 2023: Miitel South Gold Prospect RC Drilling Results
- 17 May 2023: BML Ventures Pty Ltd commenced open-pit gold mining at Jeffreys Find Gold Mine.
- June 2023: A scoping study for open pit mining and third-party toll treatment was reported for the Munda gold deposit.
- 25 August 2023: The Company announce that toll milling of the first batch of approximately 30,000 tonnes of ore from its Jeffreys Find Gold.
- September 2023: Auric withdrew from the option agreement in September 2023 such that at years end, the company managed 34 tenements, covering 283 km2, comprising 27 granted tenements, including six mining leases and seven tenements in application.
- 11 September 2023: A second gold milling campaign commenced at the Greenfields Mill.
- 1 December 2023: Jeffreys Find Gold Mine Stage One Reconciliation
- 18 December 2023: The Company entered into a subscription agreement with Golden Horse Minerals Ltd.
- November 2023 to early 2024: A total of 361 holes were drilled in a grade control drilling program at the Munda Gold Project.
- 1 February 2024: Tamara Barr appointed Joint Company Secretary.
- 1 February 2024: Catherine Yeo appointed Joint Company Secretary.
- March 2024: 99% conversion of March 2024 options which generated $2.6 million in additional capital for the Company.
- 21 March 2024: Date of Directors Declaration.
- 18 April 2024: Date of letters from the Chair and Managing Director.
- 15 April 2024: Date of shareholder information.
- 1 May 2024: Term deposit matures.
- 24 May 2024: Annual General Meeting.
- Late 2024 or early 2025: Intention to mine a starter pit at Munda.
- 2026 to 2028: Expected payment of rehabilitation costs.
Keywords
AWJ
Auric Mining Limited
ASX
Sector: Materials
Filings with Classifications
Better than expected
15 July 2025 9:38 PM
Investor Presentation
- The Jeffreys Find Gold Mine has significantly exceeded expectations by generating over $120 million in gold sales with a low acquisition and development cost of approximately $1.5 million.
- The estimated final cash distribution to Auric from Jeffreys Find of $11.5 million to $12.5 million is a strong financial outcome.
- The company's proforma financial estimates for FY2025 show substantial growth in total revenue to $24 million and net profit before tax to $13 million, indicating a very positive outlook.
Better than expected
8 July 2025 6:28 PM
Operational Update
- The project is expected to yield a 'bumper final payday' with Auric anticipating around $4.0 million from this campaign.
- Auric expects to bank more than $17 million in total from its profit share, described as a 'game changer' for the company.
- The target of 2,750 ounces from the final campaign is considered an 'impressive result'.
Better than expected
6 July 2025 6:20 PM
Commercial Agreement Announcement
- The execution of the toll milling and ore purchase agreement is a significant positive step, enabling the company to monetize gold from the Starter Pit and generate substantial cash flow.
Delay expected
4 July 2025 2:33 AM
Acquisition Update
- The Wardens Court hearing, originally due on 4 July 2025, has been further adjourned to 1 August 2025, delaying the resolution of a key condition precedent for the acquisition.
Worse than expected
4 July 2025 2:33 AM
Acquisition Update
- The Wardens Court hearing, which is a condition precedent for the acquisition, was further adjourned from 4 July 2025 to 1 August 2025, indicating a delay in the acquisition process.
Better than expected
28 May 2025 11:00 PM
Annual General Meeting Presentation
- Net Profit Before Tax increased by a significant 212% from FY 2023 to FY 2024.
- Total Revenue grew by a substantial 76% in FY 2024.
- The Jeffreys Find Mine is projected to yield over $15 million in cash returns from a $1.5 million investment, indicating exceptional profitability.
- Total Assets and Net Current Assets also showed strong growth of 62% and 135% respectively.
Capital raise
22 May 2025 8:26 PM
Capital Raise Presentation
- The document is a capital raise presentation.
- The total allocation of the capital raising is $6,660,000.
- The funds are intended for the Burbanks Gold Facility and Lindsays Project.
Capital raise
20 May 2025 6:58 PM
Trading Halt Request
- Auric Mining is planning a capital raising.
- The details of the capital raising will be announced after the trading halt is lifted.
Worse than expected
1 May 2025 4:57 AM
Legal Update
- The company is facing legal action, which introduces uncertainty and potential financial strain.
Better than expected
30 April 2025 1:45 AM
Annual Report
- The company's net profit before tax increased by over 300% compared to the previous year, indicating a significant improvement in financial performance.
Capital raise
27 April 2025 11:40 PM
Notice of Annual General Meeting
- The company is seeking approval for a 7.1A mandate, allowing it to issue up to 10% of its issued capital without further shareholder approval.
- Funds raised from the 7.1A Mandate will be used for acquisitions, exploration, development, and working capital.
Delay expected
31 March 2025 11:10 PM
Project Update
- The due diligence period for the Lindsays Gold Project has been extended.
Better than expected
30 March 2025 5:17 PM
Annual Report
- The company's net profit before tax increased by 212% compared to the previous year, indicating a significant improvement in profitability.
- Total revenue increased by 76%, demonstrating strong growth in sales.
- Adjusted net profit before tax increased by 101%, reflecting improved operational efficiency.
Better than expected
6 March 2025 2:00 AM
Corporate Presentation
- Stage Two gold production at Jeffreys Find has surpassed $100 million in revenue, exceeding initial expectations.
Delay expected
28 February 2025 1:12 AM
Announcement
- The settlement date will be changed to a date yet to be agreed, indicating a delay in the original timeline.
Better than expected
23 February 2025 5:50 PM
Operational Update
- The gold sales exceeded $100 million, surpassing initial expectations.
- The average gold price achieved was significantly higher than the initial estimate of A$2,600 per ounce.
Delay expected
9 February 2025 5:50 PM
Announcement
- The due diligence timeframe for the exclusive right to purchase the Burbanks Plant has been extended.
Better than expected
30 January 2025 4:13 PM
Quarterly Activities Report
- The company exceeded expectations with gold sales of $58.7 million at an average price of $3,952 per ounce.
- The Munda project has progressed faster than expected with the definition of an Ore Reserve and a clear path to mining.
- The acquisition of the Burbanks Mill at a discounted price is a positive development.
Better than expected
30 January 2025 4:12 PM
Quarterly Report
- The company reported a positive operating cash flow, which is better than many exploration companies that often report negative cash flow.
Better than expected
13 January 2025 4:22 PM
Production Update
- The company has exceeded expectations in terms of gold sales and ore processing compared to Stage One.
- The average gold price achieved is higher than previous sales, leading to increased revenue.
- The company has received significant interim cash distributions, indicating strong financial performance.
Better than expected
22 December 2024 4:24 PM
Operational Update
- The company's gold sales for 2024 have exceeded the previous year's total, indicating better than expected performance.
Better than expected
16 December 2024 4:13 PM
Acquisition Announcement
- The acquisition price is a substantial discount to current and replacement values.
- The acquisition will enable Auric to process its own ore, reducing reliance on third-party toll milling.
- The potential to upgrade the plant's capacity offers significant growth opportunities.
Capital raise
11 December 2024 11:53 PM
Clarification Announcement and Pre-Feasibility Study
- The upfront project capital cost for the starter pit is $6.5M.
- Any delay to the treatment of ore via toll milling leads to a requirement for working capital of $8.3M, including a 35% contingency.
Worse than expected
11 December 2024 11:45 PM
Resource Update
- The updated resource estimate shows a slight reduction in grade compared to the previous estimate.
Capital raise
11 December 2024 1:10 AM
Capital Raise Announcement
- Auric Mining Limited is raising AUD 45,000 through the issue of 300,000 ordinary shares at AUD 0.15 per share.
Worse than expected
9 December 2024 4:46 PM
Exploration Update
- The results are worse than expected due to the high AISC of $2,635 per ounce compared to industry averages, a lower than average gold recovery rate, and a very short mine life for the Starter Pit.
Delay expected
9 December 2024 4:46 PM
Exploration Update
- Any delay to the treatment of ore via toll milling leads to a requirement for working capital, including a 35% contingency, $8.3M.
Worse than expected
9 December 2024 4:44 PM
Exploration Update
- The updated resource estimate shows a slight reduction in estimated gold grade compared to the previous estimate from January 2022.
Delay expected
20 November 2024 4:18 PM
Operational Update
- Heavy rain has slowed down the haulage of ore to the Three Mile Hill Plant, potentially impacting the overall processing timeline.
Better than expected
14 November 2024 4:22 PM
Exploration Update
- The drilling results exceeded expectations, revealing high-grade gold intercepts at the Fugitive Prospect and opening a new exploration target at Anomaly 37.
Delay expected
30 October 2024 10:20 PM
Quarterly Report
- The Munda Gold Project's timeline has been delayed due to DEMIRS requiring a Mining Proposal for a larger area than initially planned.
Better than expected
30 October 2024 10:20 PM
Quarterly Report
- The Jeffreys Find gold mine's second processing campaign exceeded expectations, generating significantly higher revenue than anticipated.
Better than expected
27 October 2024 5:20 PM
Operational Update
- The securing of a toll milling agreement with Focus Minerals for a significant amount of ore surpasses previous expectations and ensures expedited cash flow for Auric.
Better than expected
9 September 2024 12:17 AM
Half Year Financial Report
- Auric Mining reported a net profit for the half-year, a significant improvement from the previous year's loss, exceeding expectations given the previous year's performance.
Better than expected
5 September 2024 6:20 PM
Exploration Update
- The aircore drilling results exceeded expectations by confirming high-grade gold intersections at the Fugitive Prospect and identifying additional promising targets at the Anomaly 37 Prospect.
Capital raise
25 July 2024 6:21 PM
Quarterly Cash Flow Report
- The document includes questions about the entity's plans to raise further cash to fund its operations if it has less than 2 quarters of funding available.
- This suggests a potential need for a capital raise in the future.
Worse than expected
25 July 2024 6:21 PM
Quarterly Cash Flow Report
- The company's net cash from operating activities was negative, indicating it spent more than it earned from operations.
- The company has negative cash available for future operating activities, suggesting potential funding challenges.
Better than expected
24 July 2024 6:23 PM
Production Update
- The company expects cash surpluses well in excess of what they had budgeted and anticipated due to the increasing gold price.
Better than expected
4 July 2024 6:18 PM
Missing type for ID: 5160
- ASX:AWJ announces better than expected results.
Better than expected
28 May 2024 7:11 PM
Production Update
- The average selling price of gold was $543 per ounce better than last year.
Better than expected
29 April 2024 6:32 PM
Quarterly Activities Report
- The company is targeting to mine 300,000 tonnes of ore in 2024, significantly more than the 176,000 tonnes processed in 2023.
Capital raise
22 April 2024 12:33 AM
Notice of Annual General Meeting
- The company is seeking approval for a 7.1A mandate, which would allow it to issue up to an additional 10% of its issued capital without further shareholder approval.
- The funds raised from these equity securities would be used for various purposes, including acquisitions, exploration, development, and working capital.
Better than expected
18 April 2024 11:14 PM
Annual Report
- The company reported a profit after income tax expense for the year attributable to the owners of Auric Mining Limited of $1,313,644 compared to a loss of $1,106,692 in the prior year.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.