Emerald sparkles; analyst set to strike

Analyst and gold bug David Brady has a bunch of good news for precious metals fans.

Brady says precious metals are about to hit their new lows ahead of a rise which will take gold to $US2200-$US2400/oz.

“Ideal conditions were in place two weeks ago for a big drop in gold and silver, and they have not disappointed,” he wrote for Sprott Money.

“In fact, both continue to fall. On the bright side, we are fast approaching my targets for the bottom in both metals at lower lows around $1920-50 in gold and $21-$22 in silver.”

Brady says when we hit these next lower lows, they will be ‘THE LOWS’.

“Emphasising my degree of conviction, I plan to go all-in when we hit bottom in gold, silver, and the miners, then just let it ride to $2200-$2400 in gold, $30 in silver, and about $40 in GDX, or higher, next,” he says.

Gold is currently paying $US2046/oz, or $3041/oz in Aussie dollars.

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Emerald shines, Red 5 eyes top of guidance

Emerald Resources (ASX:EMR) remains on track to hit FY24 guidance of 100,000oz at $US780-$US850/oz all-in sustaining costs.

It produced more than 29,000oz in the December quarter – the upper end of guidance between 25-30,000oz – from Okvau in Cambodia, one of the world’s highest-margin gold mines.

It represents another strong result from the $1.9 billion capped ASX standout, which is up 140 per cent over the past 12 months.

The company now has $137.8 million in cash and bullion.

EMR deftly evaded problems plaguing other gold companies during ramp up, and now plans to become a multi-mine 300,000ozpa producer via the Mermot (Cambodia) and North Laverton (Australia) projects.

Speaking of ramp-up problems – Tietto (ASX:TIE) produced a record 13,700oz in December from its flagship Abujar gold mine in Côte d’Ivoire.

Tietto – which is fighting off an “opportunistic” takeover from Chinese goldie Zhaojin – previously knocked down guidance at stuttering Abujar to 65,000-75,000oz for the second half of 2023.

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The mine had initially been forecast to produce as much as 120,000oz for H2 back in July.

TIE, which is down about 30 per cent over the past 12 months, says it expects to reach a revised full production capacity of around 170,000ozpa in H1 2024.

Meanwhile, goldfields miner Red 5 (ASX:RED) expects to hit top end of FY24 guidance of 195,000–215,000oz after producing 108,026oz for the first half.

It sold 53,087oz in the December quarter at an average realised price of $2619/oz.

While cost haven’t been released yet, this gives it a nice margin at expected FY24 AISC of $1850-$2100/oz.

Importantly, RED’s combined cash and bullion stash increased to $53 million in the December quarter. Its net debt position was slashed by $18.6 million to $49.6 million.

Pantoro (ASX:PNR) produced 18,185oz during the quarter, representing a 275 per cent increase since the first quarter of 2023.

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PNR sold over 18,000oz for the quarter at an average price of $3054/oz. Like the previous quarter, it has not yet divulged all-important AISC.

But cash in bank increased from $30 million to $50 million from the previous three months and the outlook looks pretty good, PNR says.

“The Norseman processing plant is operating above nameplate capacity with quarterly throughput of 271,893 tonnes @ 2.24g/t and 92.8 per cent recovery,” it says.

“Grades are expected to continue to increase as the Scotia open pit depth increases during the 2024 calendar year.”

PNR has production guidance of 100,000oz for FY24 @ AISC of $1900/oz.

This content first appeared on stockhead.com.au

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