Up 123% in a year, ASX All Ords gold stock lifting off again today on ‘landmark’ agreement

ASX All Ords gold stock Ausgold Ltd (ASX: AUC) is charging higher today.

Ausgold shares closed yesterday trading for $1.015. In early morning trade on Thursday, shares are changing hands for $1.050 apiece, up 3.5%.

For some context, the All Ordinaries Index (ASX: XAO) is up 0.9% at this same time.

This sees the Ausgold share price up 123.4% in 12 months, smashing the 7.1% one-year gains delivered by the benchmark index.

Here’s what’s catching investor interest today.

ASX All Ords gold stock jumps on cooperative agreement

The Ausgold share price is lifting after the company announced that it has entered into a binding Consultation and Cooperation Agreement with the Wagyl Kaip Southern Noongar Aboriginal Corporation (WKSNAC).

The agreement involves the ASX All Ords gold stock’s 100%-owned Katanning Gold Project, located in Western Australia.

WKSNAC is the Indigenous Land Use Agreement holder for the region.

Ausgold said that the “landmark” agreement creates a framework for ongoing consultation and cooperation with WKSNAC to support the development, construction, and operation of its Katanning Gold Project.

The agreement aims to deliver long-term benefits for both the miner and the traditional owners, enabling cultural heritage management and stakeholder engagement.

What did management say?

Commenting on the agreement helping to boost the ASX All Ords gold stock today, Ausgold executive chairman John Dorward said, “This agreement represents an important and very positive milestone for the Katanning Gold Project and reflects our commitment to working collaboratively with the Wagyl Kaip Southern Noongar Aboriginal People.”

Dorward added:

Establishing a clear and respectful framework for managing important matters such as cultural heritage and community engagement is critical as we progress the Katanning Gold Project towards development.

It is through collaborative partnerships like this that we seek to ensure that the Katanning Gold Project will deliver tangible long-term benefits for all stakeholders.

What’s been happening with the ASX All Ords gold stock?

Ausgold reported its December quarterly results on 16 January.

Among the highlights for the three months, the ASX All Ords gold stock delivered an updated Definitive Feasibility Study (DFS) for its Katanning Gold Project.

The updated DFS increased the project’s life-of-mine forecast gold production by 82,000 ounces to 1.22 million ounces. Average annual gold production is forecast to be 143,000 ounces in the first four years, with “a significantly enhanced production profile” in years five to 10.

The updated DFS also pointed to lower costs, with an all-in sustaining cost (AISC) over the first four years of $2,157 per ounce and $2,252 per ounce over the life-of-mine.

“The December Quarter was another exceptionally active period for Ausgold, with strong progress achieved across multiple fronts towards the development of our flagship 2.44-million-ounce Katanning Gold Project,” Dorward said on the day.

The post Up 123% in a year, ASX All Ords gold stock lifting off again today on ‘landmark’ agreement appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.