Executives Flock to Diggers and Dealers 2020, Gold Exploration, M&As, and Discoveries To Add Glitter

Summary

• The diggers and dealers 2020 is set to take place between 12 October 2020 to 14 October 2020 in Kalgoorlie, WA.
• While many mining executives are flocking for Diggers and Dealers 2020 in Kalgoorlie, the global investing community is also keeping a close watch at the event as many miners would take the platform to showcase plans and past performance.
• At present, there is a lot of noise around the recent $16 billion marriage between the Golden Mile pair of Northern Star Resources Limited (ASX:NST) and Saracen Mineral Holdings Limited (ASX:SAR), and both the miners are expected to take booths at the platform, making the event more glittery than usual.
• Apart from the merger of equals, other themes such as discoveries, market conditions, future expectations, also make this D&D an eye-catcher for the global investing community.

The diggers and dealers 2020 – Australia’s premier mining forum that combines presentations by listed mining and exploration companies is set to take place between 12 October 2020 to 14 October 2020 in Kalgoorlie, WA – the current gold mining hub of the continent.

The market anticipates the recent gold exploration rush across WA, mergers of equals, and latest discoveries to gain the spotlight at the event.

WA Taking Centre Stage of the Gold Mining Rush

Western Australia has emerged as a gold mining rush epicentre with over $209 million of investment for exploration till the June 2020 quarter, representing an all-time record high (as per the data from the Australian Bureau of Statistics).

A boost in production on the domestic counter has increased the overall gold export position of the continent on a global scale with gold exports surging 29 per cent in 2019-2020 to reach a record high of $24 billion, well supported by an impeccable increase in prices as well.

• Moreover, as per the data from the Department of Industry, Innovation and Science (or DIIS) the domestic mine production surged by 1.8 per cent in 2019-2020 to stand at 328 tonnes, primarily driven by improved production from large domestic mines.
• The surge in the domestic gold production was well supported by a large capital influx in exploration across WA with the gold exploration increasing 20 per cent against the previous corresponding period (or pcp), reaching a record high of ~ $1.2 billion in 2019-2020.
• The rush in the gold production across WA was mainly driven by a surge in Australian dollar-denominated and U.S dollar-denominated gold spot prices.

Gold exploration accounted for 42 per cent of the $2.8 billion total mineral exploration in 2019-2020 with WA bagging the centre of gold exploration.

WA observed $786 million of gold exploration expenditure in 2019-2020, representing 68 per cent of the total gold exploration during the period, followed by New South Wales and Victoria.

The annual event is a roadshow for many miners, and this time the venue and the current rush around gold seems to be perfectly blending.

While many mining executives are flocking for Diggers and Dealers 2020 in Kalgoorlie, the global investing community is also keeping a close watch at the event as many gold miners would take the platform to showcase plans and talk on past performance.

Merger of Equals

At present, there is a lot of noise around the recent $16 billion marriage between the Golden Mile pair- Northern Star Resources Limited (ASX:NST) and Saracen Mineral Holdings Limited (ASX:SAR), and both the miners are expected to take booths at the platform, making the event more glittery than usual.

To Know More, Do Read: Are acquisitions setting the new trend for ASX 300 Gold Shares - Saracen and Northern Star under Spotlight

Apart from the merger of equals, other themes such as discoveries, market conditions, future expectations, also make this D&D an eye-catcher for the global investing community.

Some Presentations For Diggers and Dealers

NST and It’s Near Term production Growth Outlook

• Over the last four years, the gold production of the Company has increased 76 per cent among its tier-1 assets at tier-1 mining jurisdictions.
• At present, the flagship assets of the Company have low capital intensity growth with long mine lives, year-on-year Reserve & Resource increase and conversion.
• The Company mentioned in its presentation for D&D that the organic growth production would increase 40 per cent in three years while the cost would decline by 10 per cent.
• Furthermore, NST has highlighted its flagship project – Pogo in the D&D presentation. The project of the miner is set for impeccable production growth with the overall production expected to reach 300,000 ounces by FY2023.

Ramelius Resources Limited (ASX:RMS) Production Guidance and Outlook

• RMS exceeded its September 2020 production guidance with a total production of 71,344 ounces, and now the miner anticipates the FY2021 production to meet the guidance of 260,000 ounces – 280,000 ounces with an all-in sustaining cost of $1,230 per ounce to $1,330 per ounce.
• The Company recently reduced its capital expenditure by ~ $20 million in FY2021 against pcp while increased the exploration expenditure by $5 million at $25 million for FY2021.
• RMS anticipates Eridanus Stage 2 open-pit mining, Eridanus underground scoping, and Penny Gold pre-feasibility studies to be the game-changer in the long-term growth.
• Moreover, the gold miners also estimate the extension of Vivien underground and early production at Penny Project to bring early opportunities in FY2022.

Discoveries

The recent farm-in by NST with London-listed Greatland Gold concerning the Havieron gold-copper discovery is one of the most highly anticipated events for D&D 2020. Furthermore, Callum Baxter (CTO Greatland Gold) is also expected to provide a presentation regarding the recent discovery at Havieron, that might provide other Paterson players to get a grasp on how to identify such discovery potential.

• Apart from the space of gold, one major discovery which might become of talk of the town at D&D is the recent high-grade nickel-copper sulphide discovery by Estrella Resources Limited (ASX:ESR).
• The miner recently identified a considerable nickel sulphide mineralisation at its flagship Carr Boyd Project.

To Know More, Do Read: Estrella Resources (ASX:ESR) Ballooning on ASX As The Miner Hits Jackpot at Carr Boyd, Stock Up 4.57x

In a nutshell, while top executives across the globe gather for Diggers and Dealers 2020, the stage is expected to be a roadshow for many miners, especially gold mining companies, with the golden hub- WA, mergers & acquisition, and recent discoveries to be the themes catching close attention of the global investing community.