Matsa Resources Limited (ASX: MAT) is a gold exploration company. The Company was formed to acquire actively, explore, trade and develop mineral projects with an emphasis on the Western Australian and South East Asian regions.
The company has briefed in its latest release that they have successfully completed the mining operations at the Red Dog Gold Project site in Western Australia’s Eastern Goldfields. The few critical highlights for the same are mentioned below:
- Completion of mining at the subject site has been done in late November with last ore hauled to AngloGold Ashanti’s SDGM operation on 24 December 2018.
- An unaudited operating profit of $5.5M was achieved which exceeded forecast.
- Delivery of 185,730 tonnes mined was higher than budget – at 2.3 g/t gold.
- Red Dog mining operation was an outstanding success and further demonstrates Matsa’s ability to mine small deposits profitably.
- Various opportunities are emerging & further mines have been identified within the Lake Carey gold project with planning commenced enabling the continuation of its strategy.
- As a result of the successful Red Dog mining operation, Matsa has determined to pay a 1 cent of dividend for every five shares held (0.2 cents per share) and will announce details shortly.
The mining operations at the project were completed in late November 2018, and haulage of ore to the Sunrise Dam Gold Mine (SDGM) under Matsa’s ore purchase agreement with AngloGold Ashanti Australia Limited (AGAA) was completed in late December.
The mining at Red Dog has delivered an outstanding result, generating production of 12,704 ounces and an operating profit of $5.5 million. This exceeds the target set down in the Company’s Red Dog Mine Study of July 2018. Sale proceeds from the ore delivered in December are to be remitted by AGAA to Matsa by the week ending 11th January 2019.
These project results are a further demonstration of the successful execution of Matsa’s small-scale gold mining and revenue generating strategy at its wider Lake Carey gold project area in WA’s Eastern Goldfields
Executive Chairman Paul Poli has said that the mining at the Red Dog gold project has produced a result that has met expectations, producing an operating profit of $5.5 Mn despite highly unusual and unexpected weather delays. By working closely with engaged contractors and continuing the firm’s good relationship with AngloGold Ashanti Australia, the company’s team at Matsa has achieved this excellent outcome.
Mr. Poli also stated that, as a result of the successful mining at Red Dog, the Board has decided to provide some direct benefit to Matsa shareholders which will enable them to share in the Company’s success. Accordingly, the Matsa board has determined to pay a 1 cent dividend for every five shares held by the shareholders, to all shareholders reflecting Matsa’s confidence in the Company and as a reward to loyal shareholders.
In the meantime, the stock price of the company has risen by 6.25 percent in the past six months as on 10 January 2019. MAT’s shares traded at $0.175, up by 2.941% (intraday) & it has a market capitalization of circa $30.08 Mn as on 11 January 2019.
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