The Aurelia Metals Ltd (ASX: AMI) share price has surged 14.95% higher today on the back of its Q4 FY20 update.
The group is an Australian gold and base metals mining exploration company. Aurelia has a landholding in New South Wales’s polymetallic Cobar Basin and operates the Peak and Hera Mine projects.
The 2 major processing plants possess a combined capacity of approximately 1.3 million tonnes per annum (Mtpa).
Q4 FY20 production update
The company has reported preliminary production increases in gold, copper, lead and zinc. However, the standout performer was in its gold production figures with gold increasing from 14.3 thousand ounces (koz) in Q3 FY20 to 32.8 koz in Q4 FY20. For FY20, preliminary gold production totalled 91.7 koz.
In addition, Aurelia’s cash balance at 30 June 2020 is $78.6 million which is an increase from $51.4 million at 31 March 2020. The group had no debt other than usual creditors.
Maiden Federation Resource Estimate announcement
On 9 June, Aurelia Metals released a Maiden Resource Estimate (MRE). The Federation deposit contains 197,000 tonnes of lead, 348,000 tonnes of zinc, 67,000 ounces of gold and 755,000 ounces of silver.
Drilling is ongoing to test the prospects of the mine with mineralisation ranges from 80–550 metres in depth and remains open in multiple directions.
A scoping study has commenced to evaluate project development options and the company is anticipating processing at the existing Hera Mine plant.
About Aurelia Metals
As stated in the introduction, the group operates the Hera Mine and Peak Mine.
Aurelia purchased Hera Mine as an undeveloped gold, lead, zinc and silver deposit in September 2009. The NSW government approved the development in July 2012 after extensive exploration and a feasibility study in September 2011. In FY19, the mine produced 58,025 ounces of gold at an all-in sustaining cost (AISC) of $809 per ounce.
In April 2019, the company purchased the Peak Mine for $59 million. The group was able to achieve investment payback on this purchase price within 4 months. In FY19, the mine produced 59,496 ounces at an all-in sustaining cost (AISC) of $1,143 per ounce.
After Aurelia Metals share price gain today, the company’s market capitalisation is worth $515 million.
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Motley Fool contributor Matthew Donald has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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