So far the JV has only paid out two interim dividends of $2 million each to the partners during the year, leaving a hefty pile of surplus cash still sitting in the bank pending a final reconciliation.
With the final milling campaigns wrapping up, that pile is about to grow even more. Auric is therefore looking forward to a solid payday in December and another nice cheque early next year when all the costs are tallied and squared away.
Auric Mining managing director Mark English said: “We’ve saved the best for last. All the ore going through the mill is high grade ore. We expect this campaign to produce the highest number of ounces for the year. With gold to be sold shortly it won’t be long before the first cash will be paid to Auric. Cash disbursements will continue for us into the New Year. With a very solid gold price we couldn’t possibly be selling gold at a better time.”
Even though the Jeffrey’s Find toll treating campaign has been a multi-million-dollar success for Auric, the real prize will start to present itself when the company turns its full attention to its 100 per cent-owned Munda gold mine near Widgiemooltha in WA’s Goldfields region.
The mine was highlighted by the company in a scoping study last year that showed plans to produce between 112,000 and 129,000 ounces of gold from toll treating during a mine life of three to five years in conjunction with third-party toll treating at a local mill.
Sitting on a total resource of more than 200,000 ounces grading above 2 grams per tonne as confirmed by a recent grade-control drilling campaign, Munda could produce a wall of cash, forecasting a free surplus of $76.9 million using a gold price of US$2600 per ounce.
As gold prices remain close to all-time highs, currently trading at US$2637 (A$4052) per ounce, times have rarely been so buoyant for miners of the yellow metal.
With Auric due to collect a big payout from completing Jeffreys Find in the next two months and Munda ready to fire up immediately thereafter, the company is looking dangerous as it heads into the new year with some cash in the bank and plenty of gold still to mine at Munda.
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