Beacon Minerals Shines Bright with Gold Production from Jaurdi in Surging Market

Beacon Minerals Ltd (ASX:BCN) produced 5,273 gold ounces during the March quarter from the wholly-owned Jaurdi Gold Project in Western Australia.

In total 186,789 dry tonnes were milled for the period with a recovery of over 91%.

Sales for the quarter included 6,247 ounces at an average price of A$3,129 per gold ounce delivering sale receipts of $19.54 million.

The opportunity for Beacon is the current gold price is over A$3,500, enhancing forward metrics.

Sustaining costs for the December quarter 2023 came in at A$2,307 an ounce and for the financial year 2023 were A$1,837 an ounce.

The company is assessing strategic acquisition opportunities to deliver a step change in ounce profile.

Balance sheet

Beacon held $14 million in cash at the end of the March, which excludes 880 gold ounces in transit.

The company also has a $11.2 million financing facility, with $7.51 million draw down.

Dividend payments totalling $3.7 million have been made in financial year 2024.

Total dividends since March 2021 are $41.59 million, with $16.55 million fully-franked.

Beacon is capped at around $109 million based on the last traded price of $0.029 per share.

Production pipeline

Gold production guidance for financial year 2024 remains at 24,000 to 27,000 ounces, with forward gold contracts covering 8,000 ounces at A$3,110 an ounce.

The tails capacity at Jaurdi is three years, with Lost Dog another 2.5 years, providing a current 5.5 years of total capacity remaining.

Beacon has recently added to its portfolio with the purchase of the Geko and Mt Dimer tenements.

The grade of the Geko low grade stockpiles processed to date are indicating better grades than the company’s original estimates.

Mill metrics

The Jaurdi mill is a carbon-in-pulp (CIP) gold treatment facility, constructed and commissioned in 2019.

Highlighting the expertise in the company, the plant was built inhouse on time and on budget.

Throughput for financial year 2023 delivered 854,000 tonnes, with this to stabilise at 800,000 tonnes annually once harder and higher grade ore is processed.

 

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