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Sarama Resources: Gold Exploration in World-Class Burkina Faso
Sarama Resources (TSXV:SWA) focuses on developing a portfolio of highly prospective gold projects in West Africa. The company's lead project is located in the Southern Houndé belt, one of the most prolific gold belts in Africa which features a growing gold endowment of more than 19 million ounces. The Company's second fully owned project is situated in the neighboring Banfora belt which is widely considered underexplored and highly promising.
Sarama's 100 percent owned flagship Sanutura Project is a 1,450 square kilometre late-stage exploration project located in the Houndé belt in Burkina Faso and contains ~3 million ounces of gold in resource, including over 2 million ounces of high-grade material grading +2 g/t gold and 1 million ounces of oxides within a pit shell. The project's large oxide and a free milling gold resource will allow a new mine to be financed and established using a simple CIL process flow sheet, lowering technical risk and upfront capital needs.
Sarama Resources' Company Highlights
- Sarama Resources' projects span over 2,000 square kilometres in Burkina Faso's Houndé belt, one of the most prolific gold belts in West Africa.
- The company's fully-owned flagship Sanutura Project is a 1,450 square kilometre near-term development project and contains over 2 million ounces of material grading +2 g/t.
- The Sanutura project benefits from significant oxide and a free milling gold resource which creates a low technical risk environment to pay back development and generate significant free cash flow. The relatively modest up-front capital expenditures will allow for a rapid payback and higher margins in the early years which will be followed by a second stage of development adding significantly to the mine life.
- The Karankasso Project is an exploration-stage joint venture project that has 700,000 ounces of gold in resources.
- Sarama Resources' fully-owned Koumandara Project is an exciting early stage exploration project featuring very large gold anomalies and multiple hits of high-grade gold during scout drilling.
- The company is led by an experienced management team and board with more than 30 years of individual experience and proven track records of discovery and development of large-scale gold deposits in Africa, including the multi-million-ounce world-class Kibali Gold Mine.
Sarama Resources
Overview
Sarama Resources (TSXV:SWA, ASX:SRR) is a mineral exploration and development company focused on developing a new mining district in southwest Burkina Faso. The company's lead project is located in the southern Houndé belt, one of the most prolific gold belts in Africa, which features a growing gold endowment of more than 19 million ounces. The company's second fully owned project is situated in the neighboring Banfora belt which is widely considered underexplored and highly promising.
Burkina Faso is one of the most prospective countries and largest gold producers in Africa. The country is a well-established mining jurisdiction with the most recent developments being West African Resources' (ASX:WAF) 200,000-ounce-per-annum Sanbrado Gold Mine, and Orezone Gold’s (TSXV:ORE) 140,000-ounce-per-annum Bomboré Gold Mine. The country hosts nine operational and developmental gold mines with annual gold production of approximately two million ounces. Mining companies operating out of Burkina Faso present a compelling opportunity for investors, particularly given the proliferation of low-cost discoveries, low operating costs and the potential for high-margin gold mines and significant returns.
Sarama Resources’ land package spans more than 1,900-square-kilometers across two 100-percent-owned projects, plus interest in a third project, a joint venture with Endeavour Mining Corp. The company's total attributable resource base exceeds three million ounces of contained gold.
Sarama's 100-percent-owned flagship Sanutura Project is a 1,450-square-kilometer late-stage exploration project located in the southern Houndé belt in Burkina Faso and contains approximately three million ounces of gold in resource, including over two million ounces of high-grade material grading more than 2 g/t gold and one million ounces of oxides within a pit shell. The project's large oxide and a free milling gold resource will allow a new mine to be financed and established using a simple CIL process flow sheet, lowering technical risk and upfront capital needs. Recent exploration drilling intersected new, shallow, high-grade mineralization outside the modelled resource within the central and southern areas of the Tankoro Deposit, with new downhole intersections including 21 meters @ 7.5g/t gold, 23 meters @ 4.26 g/t gold, 18 meters @ 3.63 g/t gold and 11 meters @ 4.33 g/t gold.
The company has recently completed 21,000 meters out of a planned 50,000-meter drilling program across multiple prospective targets on the Sanutura Project, with the aim of growing the pit-shell constrained oxide resource well through one million ounces of contained gold. The company is optimistic that mine development on the Sanutura Project will require relatively modest up-front capital expenditure and yield rapid payback with high margins through the formative years and ultimately culminating in a multi-faceted, long-life mining operation.
Sarama Resources' other projects in Burkina Faso include the Koumandara and Karankasso Projects. The 100-percent-owned Koumandara Project is an early exploration-stage project in the northern Banfora greenstone belt. Exploration has delineated +80 kilometers of gold anomaly with the largest gold anomaly spanning more than 35 kilometers in length and three to five kilometers in width. Scout drilling has encountered multiple high-grade gold occurrences including 4 meters @ 10.6 g/t gold and 7 meters @ 6.9 g/t gold in RC drilling, 10 g/t gold in auger drilling and 4 g/t gold in gold-in-soil sampling.
The Karankasso Project is a joint venture with Endeavour Mining and is an exploration-stage project which hosts 700,000 ounces of gold in resource and is adjacent to Sarama’s 100-percent-owned Sanutura Project.
Sarama Resources believes significant brownfields and greenfields exploration potential remains and with the project already of a size to support development, any new discovery will add incremental ounces that will ultimately drive high-margin resource growth and add to the project scale and life.
In addition to the exploration and development potential, there is also a significant consolidation opportunity to create a world-class asset by combining the Sanutura Project with the Karankasso Project JV and Endeavour Mining’s Bantou Project, which are all contiguous and together host more than five million ounces of gold.
The company also has a compelling valuation on all comparable metrics relative to its peers. Sarama Resources has strong resource grades when compared to companies such as Montage Gold (TSXV:MAU), Orezone Gold (TSXV:ORE) and Newcore Gold (TSXV:NCAU). It believes that its resource has the potential to materially increase, which will make the current enterprise value of US$4 per gold resource ounce even more compelling.
The company is led by an experienced management team and board, most of whom have more than 30 years of experience in the mining industry and a proven track record of discovery and development of large-scale gold deposits in Africa. Sarama Resources' CEO Andrew Dinning was the president of Moto Goldmines and, along with a number of the company's key management executives, was responsible for the discovery of more than 22 million ounces of gold from Moto’s Gold Project (Kibali Gold), taking it from exploration to pre-development prior to the $600 million takeover by Randgold Resources and AngloGold Ashanti in October 2009. The mine is currently operated by Barrick Gold (NYSE:GOLD,TSX:ABX) and produces 800,000 ounces of gold per year.
Company Highlights
- Sarama Resources' projects span over 2,000 square kilometers in Burkina Faso's southern Houndé belt, one of the most prolific gold belts in West Africa.
- The company's fully owned flagship Sanutura Project is a 1,450-square-kilometer near-term development project and contains close to one million ounces of oxide material and over two million ounces of material grading +2 grams per ton (g/t).
- The Sanutura project benefits from a significant oxide and free milling gold resource which presents an opportunity to undertake a staged development and establish a mine with relatively modest up-front capital expenditure allowing for a rapid payback and higher margins in the formative years which will be followed by the second stage of development adding significantly to the mine life.
- The Karankasso Project is an exploration-stage joint venture with 700,000 ounces of gold in resources.
- Sarama Resources' fully-owned Koumandara Project is an exciting early-stage exploration project featuring large gold anomalies and multiple hits of high-grade gold during scout drilling.
- The company is led by an experienced management team and board with more than 30 years of individual experience and proven track record of discovery and development of large-scale gold deposits in Africa, including the multi-million-ounce world-class Kibali Gold Mine.
Key Projects
Sanutura Project
The Sanutura Project is a 100-percent-owned, 1,450-square-kilometer near-term development project located approximately 350 kilometers southwest of Ouagadougou in the southern Houndé belt in Burkina Faso. The Houndé belt features many gold discoveries, including Endeavour Mining's 1.2-million-ounce Bantou Deposit, which is six kilometers from Sarama's Sanutura Project. The Sanutura Project hosts close to a three–million-ounce gold resource within the Tankoro and Bondi Deposits.
The Tankoro Deposit forms the major part of a regional-scale gold camp and is situated in a large mineralized corridor over 15 kilometers in length and up to 1.5 kilometers wide and has 0.6 million ounces of measured and indicated and 1.9 million ounces of inferred gold resources. The Bondi Deposit has an inferred gold resource of 0.5 million. The broader Sanutura Project area also contains numerous exploration targets including high-grade prospects at Zanawa and Bamako.
Sarama Resources commenced a +50,000-meter drill program at the Sanutura project in May 2022 and has so far intersected seven new areas of mineralization outside but proximal to the current mineral resource. The program also identified a significant new geological model targeting flat, high-grade oxide material. Sarama intends to follow up on the outstanding results from its current program that has been designed to materially increase the pit-shell constrained oxide resource, which currently sits around one million ounces of contained gold.
Koumandara Exploration
The fully owned Koumandara project is a 467-square-kilometer, early exploration-stage project located approximately 30 kilometers from Bobo-Dioulasso in the northern Banfora Greenstone belt in Burkina Faso. Banfora is relatively underexplored and is considered to be geologically similar to the Houndé belt. The Koumandara project benefits from excellent access to infrastructure and proximity to the regional power grid.
The property features a gold mineralized corridor that overlies a 45-kilometer-long section of a district-scale litho-structural break. To date, the company has identified +80 kilometers of strike length of gold-soil anomalies. Reconnaissance exploration on the Koumandara project intersected 10 g/t of gold in RC and auger drilling and 4 g/t of gold values in gold-in-soil geochemistry. Historical scout drilling on the property returned 4 meters at 10.6 g/t gold, 7 meters at 6.9 g/t gold, 15 meters at 1.8 g/t gold, 13 meters at 2.9 g/t gold, 17 meters at 1.2 g/t gold and 3 meters at 8.9 g/t gold.
Karankasso
The Karankasso project is a 750-square-kilometer exploration-stage project, located approximately 130 kilometers southwest of Endeavour Mining's Mana mine and Fortuna Silver's Yaramoko Mine. The Karankasso project is also located approximately 60 kilometers south of Endeavour Mining's Houndé mine and is adjacent to Sarama Resources' Sanutura project. The project is a joint venture with Endeavour Mining where Sarama Resources owns approximately 18 percent interest.
The property features mostly narrow quartz vein mineralization. In 2020, the mineral resource estimate on the property was 12.74 million tonnes at 1.73 g/t for 709,000 ounces of gold, of which Sarama's equity share is 130,000 ounces. The Karankasso project has also returned high-grade hits including 21 meters at 14.6 g/t in the Tiébe zone.
The Karankasso project is operated by Endeavour Mining which is currently reviewing and upgrading historical exploration as well as conducting follow-up work. The operator is focused on exploring the full 50-kilometer-long corridor that has been identified through drilling, soil anomalies and artisanal workings.
Management Team
Andrew Dinning - Managing Director and CEO
Andrew Dinning is a founder, managing director and CEO of Sarama Resources Ltd. Dinning is committed to development in Africa and recently retired as a board member of The Australia-Africa Minerals and Energy Group (AAMEG) after eight years of service. AAMEG is a peak body representing Australian companies engaged in the development of Africa's resource industry.
Dinning has over 35 years of experience in the international mining arena and has worked in the Democratic Republic of Congo, West Africa, the UK, Russia and Australia. He has extensive mine management, operations and capital markets experience and has spent most of his career in the gold sector. Dinning was a director and president of the Democratic Republic of Congo-based Moto Goldmines Ltd from 2005 to 2009. He oversaw the development of the company's Moto Gold Project (Kibali Gold) from two million to more than 22 million ounces of gold. Dinning took the project from exploration to pre-development. The Moto Gold project was later taken over by Randgold Resources and AngloGold Ashanti for $600 million in October 2009. Dinning has an MBA, a first-class mine managers certificate in Western Australia and South Australia and a Bachelor of Engineering in Mining degree.
John (Jack) Hamilton - Vice-president of Exploration
Jack Hamilton is a founder and the vice president of exploration at Sarama Resources. Hamilton has 35 years of experience as a professional geologist. Hamilton has worked around the world for international resource companies. Before Sarama, he was the exploration manager for Moto Goldmines Ltd. in the Democratic Republic of Congo. At Moto Goldmines, he led the team that discovered the main deposits and resource at the world-class Moto Gold Project (now Kibali Gold) which has a resource of more than 22 million ounces.
Hamilton specializes in precious metal exploration in Birimian, Archean and Proterozoic greenstone belts. He has worked and consulted in West, Central and East Africa for the past 20 years with various companies, including Barrick Gold Corporation, Echo Bay Mines, Etruscan Resources Inc, Anglo American, Geo Services International and Moto Goldmines Ltd. Whilst at Moto Goldmines, he led the exploration team that took the Moto gold deposit from discovery to bankable feasibility. The Moto gold deposit was later sold to Randgold Resources and AngloGold Ashanti in October 2009.
Paul Schmiede - Vice-president of Corporate Development
Paul Schmiede is a major shareholder and the vice president of corporate development at Sarama Resources Ltd. He is a mining engineer with over 25 years of experience in mining and exploration. Before joining Sarama Resources in 2010, Schmiede was vice president of operations and project development at Moto Goldmines Ltd. At Moto Goldmine, he managed the pre-feasibility, bankable and definitive feasibility study for the more than 22 million-ounce Democratic Republic of Congo-based Moto Gold Project (now Kibali Gold). Whilst at Moto Goldmines, he also managed the in-country environment, community studies and pre-construction activities. Before joining Moto Goldmines, he held senior operational and management positions with Gold Fields Ltd. and WMC Resources Ltd. At these companies, Schmiede was responsible for underground and open-pit operations as well as project development and planning.
Schmiede holds a first-class mine managers certificate in Western Australia and a Bachelor of Engineering in Mining degree. He is also a fellow of the Australasian Institute of Mining and Metallurgy.
Lui Evangelista - Chief Financial Officer
Lui Evangelista is Sarama's Chief Financial Officer with 35 years of experience in accounting, finance and corporate governance with public companies. He has more than 20 years of experience in the mining industry –– 10 years of which have been at the operational and corporate level with companies operating in Francophone Africa.
Evangelista held the positions of group financial controller and acting CFO at Anvil Mining Ltd. which operated 3 mines in the DRC. He was an integral part of the senior management team that saw Anvil's market capitalization grow from C$100 million in 2005 to C$1.3 billion upon takeover by Minmetals in 2012.
Evangelista holds a Bachelor of Business in Accounting degree, a graduate diploma in business administration and a graduate diploma in applied corporate governance.
Guy Scherrer - Exploration Manager
Guy Scherrer is the exploration manager for Sarama Resources Ltd. in Mali and Burkina Faso. Scherrer has over 15 years of experience working as an exploration geologist in Canada, DRC, the Republic of Congo, Guinea, Burkina Faso and Mali. Scherrer has worked on several advanced exploration projects including the more than 22 million ounce Moto gold project (Moto Goldmines) and the Kalana gold project (Avnel). He has also worked on the start-up of several mineral exploration projects in Africa including Lindian Resources in Guinea and Elemental Minerals in the Republic of Congo.
Scherrer has a bachelor's degree in geology from Laval University in Quebec and a master's degree in earth sciences from the National Institute for Scientific Research in Quebec.
Simon Jackson - Non-executive Chairman
Simon Jackson is a founder, shareholder and non-executive chairman of Sarama Resources Ltd. Simon is a Chartered Accountant with over 25 years of experience in the mining sector. He is the Chairman of Predictive Discovery and non-executive director of African gold producer Resolute Mining. He has previously held senior management positions at Red Back Mining Inc., Orca Gold Inc. and Beadell Resources Ltd.
Jackson specializes in M&A, public equity markets management and corporate finance. His career has included corporate transactions in Canada, Australia, Africa and Indonesia. He holds a Bachelor of Commerce degree from the University of Western Australia and is a fellow of the Institute of Chartered Accountants in Australia.
Adrian Byass - Non-executive Director
Adrian Byass has more than 25 years of experience in the mining industry. He has focused his career on the economic development of mineral resources. He is skilled in economic and resource geology. Byass has experience ranging from production in gold and nickel mines to the evaluation and development of mining projects with listed and unlisted entities in several countries. He has also held several executive and non-executive board roles on both ASX and AIM-listed companies.
Byass presently operates in a corporate and market-focused capacity on a national and international basis. He has board-level experience in mine development, capital raising and M&A in Australia and on overseas stock exchanges. Byass has played key roles in a range of exploration and mining projects in Australia, Africa, North America and Europe. These projects were based on a suite of commodities including gold, base and specialty metals.
Byass holds a Bachelor of Science in Geology and a Bachelor of Economics. Byass is a member of the Australian Institute of Geoscientists, a fellow of the Society of Economic Geology and a competent person for the reporting of mineral resources (JORC 2012).
Byass is currently on the board of multiple ASX-listed companies, including Galena Mining Ltd., Kaiser Reef Ltd., Kingwest Resources Ltd. and Infinity Lithium Ltd.
Steve Zaninovich - Non-executive Director
Steve Zaninovich has spent over 25 years in project development, maintenance and operational readiness in the mining industry. Zaninovich has held several executive and non-executive board roles with public and private companies.
Zaninovich has extensive experience in the development of multiple mining operations across various commodities and jurisdictions in West Africa, including Burkina Faso, Mali and Ghana. He served as COO at Gryphon Minerals before their takeover by Teranga Gold Corporation. Zaninovich was the vice president of major projects at Teranga Gold Corporation. While at Teranga Gold Corporation, he completed the bankable feasibility study on the Wahgnion Gold Project which is now a mine in Burkina Faso.
Zaninovich is currently a non-executive director of Maximus Resources Ltd. and Mako Gold. He was previously an executive director at Lycopodium Minerals and held non-executive director roles at Centaurus Metals, Gryphon Minerals and Orway Minerals Consultants.
Many Peaks Minerals Ltd (ASX: MPK) – Trading Halt
Description
The securities of Many Peaks Minerals Ltd (‘MPK’) will be placed in trading halt at the request of MPK, pending it releasing an announcement. Unless ASX decides otherwise, the securities will remain in trading halt until the earlier of the commencement of normal trading on Wednesday, 3 April 2024 or when the announcement is released to the market.
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This article includes content from Many Peaks Minerals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Investor Education: Gold vs. US Dollar Outlook with Expert Don Hansen
Private investor Don Hansen has honed his resource sector investment approach for more than 20 years, and he shared his latest research in a conversation with the Investing News Network.
He discussed the US dollar's rise and fall as the world's reserve currency, as well as how China is shifting away from the dollar and toward gold. Hansen also went over data on the inverse relationship between the gold price and the S&P 500 (INDEXSP:.INX), explaining how decades-long patterns show where both are heading.
"The exciting part to me is when we look at the previous data you can see that the stock market phase is about to end. It's at a very high level and it's at the end of its period," he explained during the interview.
Hansen also mentioned the Buffett Indicator, a measurement of the size of the US stock market against the size of the economy. It's produced by dividing the aggregate market cap of all US stocks by the latest quarterly GDP number.
"In the long-run average of 70 years, that number is about 75 percent," he said. "In 2000, before the dot-com crash, that number was 145 percent ... Guess what it is now? It's 180 percent. So we are due."
Hansen encouraged investors to add gold to their portfolios, and has spoken previously about how to build a portfolio of gold and silver stocks. To watch those interviews, click the links below:
- Gold and Silver Stock Analysis with Expert Don Hansen
- Gold and Silver Stock Leverage with Expert Don Hansen
- Gold and Silver Portfolio Building with Expert Don Hansen
- Gold and Silver Stock Evaluation with Expert Don Hansen
- US Debt and Currency Collapse with Expert Don Hansen
You can also click the the timestamps below to view specific parts of the interview above:
- 0:00 — Intro
- 0:44 — How US dollar became reserve currency
- 3:37 — Decline of US dollar as reserve currency
- 8:56 — China's de-dollarization and shift to gold
- 14:12 — Gold price vs. S&P 500
- 20:17 — Gold supply vs. demand
- 25:18 — Final thoughts from Don
- 31:18 — Outro
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Goldman Sachs Bullish on Commodities, Shares 2024 Price Calls for Gold and Copper
Goldman Sachs (NYSE:GS) is maintaining its bullish stance on commodities as they continue to enjoy strong cyclical and structural support, and as the US and Europe move closer to cutting interest rates.
The American investment bank said it sees raw materials potentially returning 15 percent in 2024.
“We find that US rate cuts in non-recessionary environments lead to higher commodity prices, with the biggest boost to metals (copper and gold in particular), followed by crude oil,” Bloomberg quotes analysts Samantha Dart and Daan Struyven as saying in a note this past Sunday (March 24). “Importantly, the positive impact on prices tends to increase with time, as the growth impulse from looser financial conditions filters through.”
Copper and gold have already rallied during the first quarter of the year, with the former moving past US$9,000 per metric ton and the latter breaching the US$2,200 per ounce mark to reach an all-time high.
Goldman is calling for copper to break US$10,000 by the year's end and for gold to hit US$2,300.
Other commodities, such as aluminum and oil products, are also set to make continuous climbs.
Aluminum is expected to reach US$2,600 per metric ton by 2024's end, while Brent crude is likely to stay "well supported" between US$70 and US$90 per barrel. The bank also underscored the role of commodities as a geopolitical hedge.
While Goldman is positive on the sectors mentioned, the same cannot be said for battery metals, where its outlook is more bearish. "Within the industrial metals, the segment with the most bearish fundamentals remains battery materials ... we believe it is too early to call a decisive end to these respective bear markets,” the bank said.
Battery metals — which include lithium, nickel, and cobalt — have seen increases in demand alongside production growth for wind turbines, solar panels and electric vehicles (EVs). However, prices for these metals have taken a tumble in the last 18 months due to factors including oversupply and lower sales volumes from EV manufacturers.
Goldman anticipates 2024 price declines of 9 percent, 13 percent and 27 percent decline for cobalt, nickel and lithium carbonate, respectively. With that in mind, it encourages taking a selective approach in the commodities sector.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
Top 5 ASX Gold Stocks That Pay Dividends (Updated 2024)
If you're interested in gold stocks, it's worth taking a look at the top ASX gold stocks that pay dividends.
A dividend is a sum of money that is paid regularly by a company to a class of its shareholders out of its earnings. Dividends are often issued as cash payments, but can also be issued as stock or other property.
Read on for a deeper look at gold dividend stocks and a breakdown of the top five dividend-paying ASX gold stocks.
What is a gold dividend stock?
A dividend is essentially a reward that is paid to shareholders for their investment in a company’s equity. Dividends generally comes from a company’s net profits — while the majority of a company’s net profits stay within the company as retained earnings, an outstanding portion can be divided up and distributed to shareholders.
Dividends are generally a sign that a company is flourishing, but there are times when a firm may still make dividend payments even when it's not achieving suitable profits. This tends to happen when a company wants to maintain confidence by keeping up with its established track record of regular dividend payments.
In the past, investors didn’t always look to gold stocks as a way to obtain a dividend. However, a rising number of gold miners now pay — and often raise — dividends. If investors select the right ones, they can set themselves up to profit handsomely from both a steady stream of dividend income and the strong capital gains available in resource investing.
A dividend is especially attractive in the sometimes volatile gold sector because it gives investors a degree of security — put simply, if a company pays a dividend, it generally feels that it has the cash to do so, and will have the ongoing profits it needs to keep those payments coming. On the whole, dividend-paying companies tend to outperform the market when it’s rising, and perhaps more importantly, decline less than average in a falling market.
When it comes to ASX-listed gold stocks, dividends also have tax advantages — thanks to Australia's dividend tax credit, dividends from eligible Australian corporations have an advantage over interest income.
How to pick a dividend-paying gold stock?
So how can investors pick the right dividend-paying gold stocks? A key indicator to consider is dividend yield, which you can figure out when you take the miner’s total yearly dividend payments and divide them by its share price. This allows investors to glean how much they will get back in dividends based on each dollar they have invested.
That said, it's important to keep in mind that simply picking stocks with high dividend yields may not be entirely beneficial. This is due to the fact that a company’s dividend yield can be high because its share price has dropped, which is an obvious indicator of serious risk — not only to the dividend, but to the investment as a whole.
To get a true measure of the stability of a company’s dividend, you have to look deeper. Here are three other factors to consider before putting money into a gold dividend stock:
- A history of paying a dividend (and ideally raising it) — The more established the company’s dividend is, the less likely it is to cut or eliminate it in the near future.
- A healthy balance sheet — Look for a company with a significant cash balance and low debt.
- A reasonable payout ratio — The payout ratio is an indicator of whether a company can maintain its dividend; it is calculated by dividing the per-share dividend payment by net earnings per share. A payout ratio of 80 percent or less indicates that a mining stock has the flexibility to both maintain its dividend and make the investments it needs to boost its production or take on further exploration.
Which ASX gold stocks have the highest dividends?
Below are five of the top ASX-listed gold dividend stocks based on dividend yield. Data for this article was gathered using TradingView’s stock screener on March 20, 2024, and companies had market caps of over AU$50 million at the time.
1. Rand Mining (ASX:RND)
Dividend yield: 7.3 percent; current share price: AU$1.37; market cap: AU$77.92 million
Rand Mining explores for and produces gold at properties in Western Australia. Its primary focus is the East Kundana joint venture, which is comprised of two producing underground mines, Raleigh and Rubicon/Hornet/Pegasus.
The company holds a 12.25 percent interest in the asset, along with Northern Star Resources (ASX:NST,OTC Pink:NESRF) subsidiary Gilt Edge Mining (51 percent) and Tribune Resources (ASX:TBR) (36.75 percent).
Rand Mining pays an annual dividend of AU$0.10, with the most recent dividend payment made on November 30, 2023.
2. Beacon Minerals (ASX:BCN)
Dividend yield: 4 percent; current share price: AU$0.024; market cap: AU$93.92 million
Beacon Minerals is a gold mining and exploration company operating in the Eastern Goldfields of Western Australia. Its Jaurdi gold project hosts the Lost Dog open pit and the Jaurdi processing plant. Meanwhile, its MacPhersons project holds two resources, MacPhersons Reward and Tycho, along with several small historic underground mines and exploration prospects. As part of its goal to expand Jaurdi's mine life, the company recently inked a binding deal to acquire a 100 percent interest in the Mount Dimer tenements from Aurumin (ASX:AUN) for AU$3 million.
Beacon’s gold production for its 2023 fiscal year came in at 29,110 ounces. The company's production guidance for its 2024 fiscal year is in the range of 24,000 to 27,000 ounces of the yellow metal.
Beacon's last dividend payment of AU$0.001 per share was paid on December 8, 2023.
3. Northern Star Resources (ASX:NST)
Dividend yield: 2.2 percent; current share price: AU$13.40; market cap: AU$15.9 billion
Northern Star Resources has world-class projects in both Australia and North America.
Since the acquisition of the high-grade, low-cost Paulsens gold mine in 2010, the miner has continued to build a portfolio of high-quality, high-margin mining operations with the aim of delivering maximum returns to its shareholders.
The company also owns the Jundee gold mine, which it purchased from Newmont (TSX:NGT,NYSE:NEM) in 2014 for AU$82.5 million. The project is well known due to the fact that it solely uses underground mining and not the often utilised open-pit mining. As part of its growth strategy, Northern Star is targeting 2 million ounces of production per year by 2026.
Northern Star’s dividend has grown at a yearly rate of around 15 percent over the past five years. The company's next biannual dividend payout of AU$0.15 will be paid out on March 28, 2024.
4. Perseus Mining (ASX:PRU)
Dividend yield: 1.79 percent; current share price: AU$2; market cap: AU$2.86 billion
Perseus Mining has three operating gold mines in West Africa: Edikan in Ghana, and Sissingué and Yaouré in Côte d’Ivoire. Its acquisition of Orca Gold in 2022 gave it control of 70 percent of the Meyas Sand gold project in Sudan.
Perseus' annual gold production for 2023 came to 528,486 ounces at an all-in site cost of US$984 per ounce, and the company reported a revenue increase of 22 percent compared to the previous year. Its robust financial performance prompted a bonus dividend payout for investors in 2023.
Perseus' next dividend payment for 2024 will come to AU$0.0125 per share on April 5.
5. Gold Road Resources (ASX:GOR)
Dividend yield: 1.42 percent; current share price: AU$1.505; market cap: AU$1.68 billion
Gold Road Resources is a mid-tier Australian gold producer and explorer with projects across Western Australia, South Australia and Queensland. The company holds a 50 percent interest in the Gruyere joint venture project in Western Australia with one of the world’s top gold-producing companies, Gold Fields (NYSE:GFI). One of Australia’s top gold mines, Gruyere is a high-grade, low-cost, open-pit gold mine with a life of more than 10 years.
The company’s next dividend payment will come to AU$0.01 per share on April 2, 2024.
This is an updated version of an article first published by the Investing News Network in 2019.
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Securities Disclosure: I, Melissa Pistilli, currently hold no direct investment interest in any company mentioned in this article.
Falco Reaches Another Major Milestone and Confirms Admissibility of Its Horne 5 Project’s Environmental Impact Assessment
Falco Resources Ltd. (TSX.V: FPC) (“Falco” or the “Corporation”) is pleased to announce the receipt of confirmation of the admissibility of its Environmental Impact Assessment (“EIA”) for the Horne 5 Project located in Rouyn-Noranda (the “Admissibility”) from the Ministry of the Environment, the Fight Against Climate Change, Wildlife and Parks (“MEFCCWP”).
Since the initial EIA filing in 2018, Falco has completed extensive field work and studies, in addition to providing the documentation in order to respond to questions and requests for information raised by the MEFCCWP. Driven by ESG principles, the EIA was conducted by a multidisciplinary team comprised of Falco’s employees, experts and partners, and highlights the Horne 5 Project’s benefits and impacts on its physical, biological and human environments. The EIA includes various measures to avoid, mitigate or compensate for these impacts, and to enhance the project’s overall benefits, in a strong corporate governance environment. The EIA and all related documentation are publicly available on the Environmental Assessment Register of the MEFCCWP.
Luc Lessard, President and Chief Executive Officer of Falco noted: “In addition to the recent conclusion of the Operating License and Indemnity Agreement with Glencore Canada Corporation on January 23, 2024, the Horne 5 Project’s EIA Admissibility from the MEFCCWP constitutes another significant milestone in advancing closer to the development and realization of the Horne 5 Project. Falco’s team has been working extremely hard on the environmental permitting process, and the EIA Admissibility provides the path forward for the advancement of the Project. Although important steps remain, we strongly believe in the Horne 5 Project as a green and world-class polymetallic project that will benefit the surrounding communities. We would like to thank everyone involved at the MEFCCWP for their work and continued assistance throughout this process. Falco would also like to thank the communities of Rouyn-Noranda for their engaged and active participation and continuous support.”
Public Hearing Process
The EIA Admissibility allows Falco to progress towards the public hearing process to be hosted by the Bureau d’audiences publiques sur l’environnement (“BAPE”) following the issuance by the MEFCCWP of a BAPE mandate to conduct such public hearing process, which notably involves a 45-day public information period, beginning April 24, 2024, in addition to a 4-month public hearing process. Falco’s stakeholders will be invited to this public information period which will allow them to meet Falco’s team, ask questions and obtain information on the Horne 5 Project. For more information, please refer to the following MEFCCWP link: https://www.ree.environnement.gouv.qc.ca/index.asp
Since 2019, Falco has been interacting and working with its host milieu and stakeholders, including its Consultation Committee. The comments, questions and ideas collected during these discussions have helped Falco gain a better understanding of the challenges and concerns of our stakeholders in order to develop a proposal for the Horne 5 Project that fosters the harmonious cohabitation of all stakeholders in the region with this mining project of a new generation.
Hélène Cartier, Vice President, Environment, Sustainable Development and Community Relations added: “We are extremely grateful to our stakeholders and host communities, who participate in our consultation activities and initiatives, allowing us to develop a great project for the Rouyn-Noranda region. We remain committed to continuing to develop a collaborative project and making it a source of pride for our communities. Our team is ready and proud to initiate the BAPE process.”
About Falco
Falco Resources Ltd. is one of the largest mineral claim holders in the Province of Québec, with extensive land holdings in the Abitibi Greenstone Belt. Falco owns approximately 67,000 hectares of land in the Noranda Mining Camp, which represents 67% of the entire camp and includes 13 former gold and base metal mine sites. Falco’s principal asset is the Horne 5 Project located under the former Horne mine that was operated by Noranda from 1927 to 1976 and produced 11.6 million ounces of gold and 2.5 billion pounds of copper. Osisko Development Corp. is Falco’s largest shareholder owning a 17.3% interest in the Corporation.
For further information, please contact:
Luc Lessard
President and Chief Executive Officer
514 261-3336
info@falcores.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information (together, “forward-looking statements”) within the meaning of applicable securities laws, in particular Falco’s ability to complete the BAPE, to obtain receipt of permits and approvals required to develop the Horne 5 Project and the ability of Falco to efficiently develop and operate the Horne 5 Project based on the terms of the Operating License and Indemnity Agreement concluded with Glencore Canada Corporation (“OLIA”). These statements are based on information currently available to the Corporation and the Corporation provides no assurance that actual results will meet management’s expectations. The occurrence of such events or the realization of such statements is subject to a number of risk factors, including, without limitation, the ability of Falco to provide the financial assurance guarantees required by the OLIA and the exercise by Glencore Canada of rights under the OLIA which could affect the development and operation of the Horne 5 Project, together with the other risk factors identified in Falco’s Annual Information Form and other continuous disclosure documents available at www.sedarplus.com. Although Falco believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by applicable law, Falco disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
$1.5 Million in Firm Commitments Received for Capital Raisings
$0.5 million partial underwrite of the Rights Issue & $1.0 million in further debt or equity to be raised by end April 2024
R3D Resources Limited (ASX: R3D) (the Company) (renamed Tartana Minerals Limited) is pleased to provide an update on the 1 for 5 pro rata entitlement offer of New Shares in the Company at an issue price of $0.05 per New Share, as well as 1 attaching Option exercisable at $0.10 expiring 31 December 2025 for each 2 New Shares subscribed for (the Rights Issue) which opened in November 2023.
Key Points:
- Firm commitment received from Breakaway Investment Group (controlled by director Dr Stephen Bartrop) to underwrite the Rights Issue of up to $500,000
- Additional firm commitment received from Breakaway Research (also controlled by director Dr Stephen Bartrop) to raise $1 million for the Company from third party investors through debt, equity or hybrid instruments by 30 April 2024
- Rights Issue to be extended until 10 April 2024 to enable eligible shareholders to participate on the same terms following the underwriting
- Underwriting Agreements, firm commitment agreements, and further disclosures are to be made upon formal documents being executed over the coming days
- Copper Sulphate production at Tartana has restarted and the Company is targeting to achieve a minimum production rate of fifteen bags of Copper Sulphate a week during the month of April 2024
- Production since restart during March has totalled twenty bags
Breakaway Investment Group Pty Ltd (Breakaway Investment), an entity controlled by R3D’s Managing Director, Dr Stephen Bartrop, has provided the Company with a firm commitment to underwrite the Rights Issue to a minimum raise of $500,000 (the Underwriting), subject to formal agreement.
Additionally, Breakaway Research Pty Ltd (Breakaway Research) an entity also controlled by Dr Stephen Bartrop has provided a further firm commitment to raise $1 million for the Company through debt, equity, or hybrid instruments by 30 April 2024 (the $1m Commitment), again subject to formal agreement. To the extent that Shares and Attaching Options are placed, the Company may use shortfall from the Rights Issue for this purpose. The terms of this raising will be settled between the Company and Breakaway Research in the ordinary course. Breakaway Research is an AFSL holder and accordingly the funds are not expected to be raised from Dr Bartrop but rather parties introduced through Breakaway Research. Accordingly, the Company does not expect shareholder approval to be required for the placement of those securities (except if necessary for placement capacity reasons or if the underlying clients are also Chapter 10 parties).
The Company Is in discussions with each of Breakaway Investment and Breakaway Research towards execution of full-form documents to give effect to this commitment. On those discussions resulting in a binding agreement the Company will issue a further Supplementary Prospectus and will provide the requisite disclosure under ASX Listing Rules as to the full terms of this Underwriting and the $1m Commitment.
The Company will ensure that such terms are arms’ length.
Additionally, it is not expected that the Underwriting or $1m Commitment will result in Dr Bartrop materially increasing his holding in R3D with sub-underwriting and sub-commitment arrangements to be put in place by Breakaway Investment and Breakaway Research at their discretion. Neither Breakaway Investment nor Breakaway Research are being paid fees for their commitments to the Company.
The Company expects that the final terms of the $1m Commitment will include a condition precedent that the Company completes production of at least fifteen 1.2 tonne bags of Copper Sulphate a week from 1 April to 28 April 2024 (calculated on average over the period, totalling 60 bags). The directors (excluding Dr Bartrop) have considered this condition, and have formed the view that it is reasonable to the Company and Breakaway Research. Further, the Company is confident that this will be achievable noting that production in March to date has been twenty bags whilst still being impacted by weather conditions.
Commenting on the status of production at Tartana, Dr Bartrop said:
“We are pleased to report that we have recommenced production at Tartana following a prolonged run of unexpected poor weather that limited site access for staff and input materials. Although the weather continues to affect site operations and access, we are confident in achieving a minimum production at Tartana of at least fifteen bags per week, but hopefully well in excess of that as conditions improve.”
Further Extension of Rights Issue
Eligible Shareholders can review the Rights Issue Prospectus and apply from the Company’s website: www.r3dresources.com.au or at www.computersharecas.com.au/r3dnrri.
Having regard to the impending underwriting, the Company intends to further extend the Rights Issue offer open period until 10 April 2024 which will allow time for eligible shareholders to consider participating on the same terms as the Underwriters.
A Supplementary Prospectus in relation to the extension of the Rights Issue offer open period is annexed, and a copy is being lodged with ASIC.
Click here for the full ASX Release
This article includes content from R3D Resources, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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