The sustained merger and acquisition (M&A) activity in Australia’s gold sector has not distracted the country’s mid-tier gold miners from delivering strong production results.
The likes of St Barbara, Red 5, Ramelius Resources, Westgold Resources, Regis Resources and Capricorn Metals all announced production results to open July as a precursor to upcoming quarterly reports.
Regis and Capricorn both announced record annual production for the 2022–23 financial year (FY23), with the two companies producing 458,354 ounces (oz) and 120,014oz across the 12 months, respectively.
Regis’ Duketon gold operation in WA was a key player in the company’s FY23 performance, producing 327,300oz alone, while Capricorn produces gold from its Karlawinda gold operation in WA and is advancing its Mt Gibson project towards first gold.
St Barbara (260,368oz against 240,000–265,000oz) and Westgold Resources (257,116oz against 240,000–260,000oz) both achieved the upper-end of their FY23 production guidances, while Red 5 (102,572oz against 90,000–105,000oz) produced in upper-end of its guidance for the six months to June 30.
Ramelius Resources also achieved guidance, producing 240,996oz for FY23 on a 240,000–250,000oz target.
These performances come amid heightened M&A activity in the Australian gold sector, which has not been completely harmonious either.
Genesis Minerals had to ward off a persistent Silver Lake Resources in its bid to buy St Barbara’s Leonora gold assets. The deal was eventually closed in late June after a six-month process that initially proposed Genesis and St Barbara merging to create a new standalone entity.
After Westgold Resources announced a bid to acquire Musgrave Minerals in early-June, this would be rejected by Musgrave in favour of a separate Ramelius proposal, which was announced a month later.
The Cue gold project in the Murchison region of WA was the key attraction in the Musgrave bids, which is located 35km south of Ramelius’ Mt Magnet processing facility and provides another future ore stream for the plant.
Australia’s mid-tier gold miners will elaborate on their FY23 performances when they release their quarterly reports in the coming weeks.
Subscribe to Australian Resources & Investment and receive the latest news on commodity prices, resource developments, executive movements and more.