De Grey Mining (ASX: DEG) focuses on commencing construction at Hemi

Highlights

• De Grey Mining is an ASX listed gold exploration and project development company
• In 1HFY24, revenue of DEG increased by 421.13% to AUD 6.62 million
• Gold Road Resources has the maximum stake in the company with a shareholding of nearly 15.23%

De Grey Mining Limited (ASX:DEG) is a gold exploration and project development firm with a primary focus on Western Australia. The company has been vigorously progressing its Hemi Gold Project, which it wholly owns and is situated in the Pilbara region. Hemi stands out as a Tier 1 gold discovery, benefitting from nearby infrastructure such as sealed highways, electricity transmission lines, and a gas pipeline.

In the first half of the financial year 2024 (1HFY24), the company witnessed a 421.13% YoY rise in its total revenue to AUD 6.62 million and its loss dropped by 5.68% YoY to AUD 7.02 million. The period saw the release of Hemi Definitive Feasibility Study.

During the reported period, the company concluded a placement of AUD 300 million, initiated project implementation activities and secured grant of the mining lease for Hemi. Meanwhile, exploration activities advanced at Greater hemi, hemi and regional prospects.

Top 10 shareholders of DEG

The top 10 shareholders of DEG have around 40.19% shareholding in the firm. Gold Road Resources Limited has the maximum stake in the company with a shareholding of nearly 15.23%, followed by Jupiter Asset Management Ltd., which has 4.17% shareholding.

Recent business update

On 26 March 2024, the company notified about the appointment of Ivan Mullany as chair of the Hemi Gold Project Committee. Mullany is an experienced gold mining executive. He carries 35years of experience in the mining sector covering governance, business strategy, innovation, operational excellence and project development. The committee has the responsibility to oversee the project execution plan for Hemi.

Outlook

The company's activities are focused on expanding the resource base, exploring regional resources, and enhancing production potential. Additionally, the company is conducting studies to evaluate the potential development of a regional contractor at Withell to facilitate further production at Hemi. Through extensive and ongoing exploration efforts, the company is actively pursuing new discoveries.

By the end of 2024, the company targets to enable the final investment decision.

Share performance of DEG

DEG shares closed 0.746% lower at AUD 1.330 apiece on 9 April 2024 with a market capitalization of AUD 2.48 billion. In the past one year, DEG’s share price has dropped by 15.02%, while in the last six months, it has risen by over 9%.

The 52-week high of DEG is AUD 1.715, recorded on 14 April 2023, while 52-week low is AUD 1.053, recorded on 3 October 2023.

DEG Daily Technical Chart, Source: REFINITIV

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 09 April 2024. The reference data in this report has been partly sourced from REFINITIV.

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