Jim's Mining Letter - April 21, 2024

Newmont (NEM NGT.TO NEM.AX) published its 2023 Sustainability Report and 2023 Taxes and Royalties Contribution Report. It has expanded the Fatality Risk Management program to address risks associated with exposures to hazardous dust and fumes, completed more than 650,000 critical control verifications to ensure the safety of workforce, aligned all 11 priority facilities across Newmont with the new Global Industry Standard on Tailings Management, advanced the Respect at Work program, introducing a new Camp and Facilities Standard with inclusive site requirements and procedures and increased female representation among senior leaders to 33%, up from 31% in 2022, advancing its target of achieving gender parity in senior leadership by 2030.

Bluejay Mining (JAY.L BLLYF) announced its intention to expand the scope of its corporate strategy to include the exploration and development of helium, industrial gases, and hydrocarbons. This expansion is said to underscore the company's commitment to innovation and growth in the natural resources sector and maximising value for shareholders. Per the company, by recognising the increasing global demand for helium and industrial gases across critical sectors such as healthcare, aerospace, and energy, Bluejay is strategically positioned to capitalise on potential opportunities. Bluejay says it remains committed to its ongoing exploration and development projects focussed on copper, nickel and other battery metals, which represent a crucial component in various industries including renewable energy and electric vehicles.

Reunion Gold (RGD.V RGDFF RG7.F) announced the signing of a mineral agreement with the Cooperative Republic of Guyana and the Guyana Geology and Mines Commission. The mineral agreement provides the company and its 100%-owned Guyanese subsidiary with stable fiscal and operating conditions during the life of the Oko West gold project. The terms in the agreement are said to be consistent with current standard terms established by the country. As part of the agreement, the company has committed to prioritizing the employment of qualified and suitable Guyanese individuals and to supplement this by implementing a comprehensive training program to develop the additional skills required to facilitate the employment of Guyanese personnel at all levels of operations. The Company believes that fostering and training local talent will contribute to the sustainable development of the country.

Emerita Resources (EMO.V EMOTF LLJA.F) announced the entering into of binding subscription agreements with four investors with respect to a non-brokered private placement financing of 12.5 million units at $0.40 per unit for gross proceeds of $5 million. Emerita believes the investors are long-term investors and are supportive of the company’s strategy to continue to build value through the development of the Iberian Belt West Project and other projects in its portfolio in the Iberian Pyrite Belt. Each unit will be comprised of one common share in the capital of the company and one common share purchase warrant. Each warrant will entitle the holder to purchase one common share at an exercise price of $0.60 per share for a period of 36 months following the completion of the offering. Securities issued under the ffering are expected to carry a hold period of 4 months and one day from the date of issue as may be required under applicable securities laws. The offering is scheduled to close on or about 25 April 2024

Whitehaven Coal (WHC.AX WHITF WC2.F) announced its published production report for Q3 2024. The acquisition of BMA’s Daunia and Blackwater coal mines completed on 2 April, transforming Whitehaven into a leading metallurgical coal producer. Whitehaven achieved an average coal price of A$219/t for the quarter, managed run-of-mine production of 4.4Mt was 13% lower than the December quarter, while year to date run-of-mine production of 14.7Mt is 12% above prior year. March quarter managed sales of produced coal of 3.8Mt was 16% lower than the December quarter, and total equity sales of produced coal of 3.1Mt is 16% lower. The company says it is on track to meet overall run-of-mine production guidance of 18.2 – 20.7Mt and sales guidance for full-year 2024, before an additional contribution from the acquired Queensland business of around 4.5 – 5.0Mt of run-of-mine production and around 3.5 – 4.0Mt of sales in the June quarter.

Capricorn Metals (CMM.AX CRNLF) announced an update to the maiden April 2023 ore reserve estimate at the wholly owned Mt Gibson Gold Project in Western Australia. 89,543 metres of drilling over the last year at the Mt Gibson Gold Project has delivered a 380,000 ounce (26%) increase to the ore reserve estimate. Updates to the April 2023 pre-feasibility study continue to demonstrate the project as a compelling second mine growth opportunity for Capricorn. The updated estimate increases Capricorn's group gold reserves to 3.1 Moz. Per the company, it presents a rare growth opportunity amongst the Australian mid-tier gold industry. The project is located on a granted mining lease, less than 300km from Perth and has exceptional access to infrastructure and services.

Pilbara Minerals (PLS.AX PILBF PLR.F) published its March 2024 quarterly activities report. The company reported a solid operational performance with production volume of 179 kdmt of spodumene concentrate in the three-month period ended 31 March 2024 with the P680 primary rejection facility achieving nameplate production capacity in the second half of the quarter. Average estimated realised price was US$804/dmt3 on a SC5.3 basis in the quarter. Relative to the December quarter 2023, prices stabilised and then increased toward the end of the March quarter. The pre-auction sale of 5k dmt at US$1,106/dmt SC5.5 in March reflects the ongoing demand and positive pricing for unallocated production volume. Revenue declined 27% to $192 million compared to the prior quarter, reflecting a 28% decline in average realised price partly offset by a 3% increase in sales volume.

Gold Road Resources (GOR.AX ELKMF E6Q.F) announced its published activity report for the quarter ending 31 March 2024. Gold sales totalled 32,325oz at an average sales price of A$3,137 per ounce. Gold doré and bullion on hand on 31 March 2024 was 1,825oz. Attributable operating cash flow from Gruyere for the quarter was $57.9 million (December quarter: $69.6 million). Free cash flow was $5.5 million for the quarter (December quarter: $13.8 million). Mining and processing operations have resumed at Gruyere, with consumables transported via the Northern Territory and Warburton to the east of Gruyere, while repairs continue on the Great Central Road, Gruyere’s main supply route from the west. Gruyere produced 64,323oz of gold (100% basis) at an all in sustaining cost of A$2,194 per attributable ounce during the March 2024 quarter (December quarter: 74,659oz at an AISC of A$1,973 per attributable ounce). Production at Gruyere was impacted by sustained rainfall and extended road closures during March and into April.

Kavango Resources (KAV.L KVGOF) announced that it is tendering for the first phase of scope drilling on the Kalahari Copper Belt Karakubis Project with shortlisted drill contractors. A first phase of 5,000m diamond core drilling is planned on the Karakubis Project tenements in western Botswana. Drilling will target the shallower Kara Anticline's potential to be a copper mineralising system. The drilling aims to follow up targets previously identified by a combination of historic airborne electro magnetic and induced polarisation surveys, and geological interpretation on the recently acquired ENRG licences that were never drill tested, plus new targets being generated from interpretation of Kavango's airborne electro magnetic, magnetic and gravity survey flown in December 2023 and January 2024.

Finally, Azimut Exploration (AZM.V AZMTF) announced very encouraging visual results from its second phase of diamond drilling on the Galinée Property in the Eeyou Istchee James Bay region of Quebec, Canada. Hole GAL24-025 intersected a 166.1-metre-thick envelope containing two broad intervals of spodumenerich pegmatite of 92.1 m and 56.55 m separated by 17.45 m of amphibolite (cumulative thickness of 148.65 m).

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