No callers knocking ‘yet’ as Dacian predicts growth
Summary: Dacian Gold executive chairman Rohan Williams says it is inevitable the newly minted gold miner will come on to the radar screens of bigger rivals but so far he has had “zero” interest.....
“If we deliver our ramp-up and if we are producing 200,000 ounces of gold at $1000/oz operating costs, I can’t imagine that no-one will have interest,” he said.
“There are very few (such) operations around in the middle of tier-one jurisdictions.
“I have had zero interest in the company so far, unbelievably.
“I suspect people are watching us closely; we get the ramp-up right and there might be a few phone calls after that.”
Dacian produced first gold at its Mt Morgans project near Laverton in early April and last month announced it had achieved maiden June quarter production of 34,155oz, comfortably within its 30,000oz to 40,000oz guidance range.
It represented another milestone for the company after completing the $200 million project this year on time and budget.
The company has issued full-year guidance of 180,000-210,000oz and is targeting similar annual output at $1000/t for the next 10 years and beyond.
This week Dacian announced a maiden resource for its Cameron Well deposit of 245,000oz (6Mt at 1.2g/t), boosting the overall Mt Morgans measured and indicated resource by 11 per cent to 2.5 million ounces.
Cameron Well, which lies between the Westralia and Jupiter mines at Mt Morgans, is rapidly developing as a potential third mining centre for Dacian.
Last month Dacian announced a $45 million raising to ramp up exploration beneath its existing Westralia mine and aggressively drill out its neighbouring Cameron Well prospect. Mr Williams has identified Cedar Island on Lake Carey to the south of Mt Morgans as the company’s next syenite-hosted gold target.
He said Dacian was attracting more interest from North American investors, with the percentage on its share register up from 15 per cent to 19 per cent in the past three months.
“The North American investors ... they’ve become very wary,” Mr Williams said.“They like what we say we think we can do.
“I think if we demonstrate 50,000oz quarters, new exploration success, cost structures in place, I think you’ll see them progressively acquire the stock.”