Big US stocks’ Q3 2024 fundamentals
The big US stocks dominating markets and investors’ portfolios just finished another earnings season.
Augusta Gold (TSX: G) has provided a feasibility study for its fully permitted, construction-ready Reward project that places the company on track to become the first modern gold producer within the Beatty district of Nevada.
The Reward project is a planned open pit, heap leach operation that could process up to 5,479 tonnes of material per day with average annual gold production of approximately 39,000 oz. over a 7.6-year mine life. This will be mined from an estimated gold reserve base of 370,000 oz. grading 0.86 gram per tonne.
At the base case scenario of $1,975/oz. gold price, the project’s net present value is calculated at $50.6 million (at a 5% discount), and the internal rate of return at 16.6%. However, at a higher, more current gold price of $2,400.oz., these economics would more than double at $126.9 million and 33.4%, respectively.
The initial capital cost is estimated at $89.7 million, giving the project a payback period of approximately 5 years under the base case and 2.4 years under the higher-gold-price scenario.
Augusta CEO Donald Taylor said the Reward project could be in production within 12 months of commencing full-scale construction. “Our goal is to be a low-cost, 150,000 oz. gold per annum producer in Nevada by 2027,” Taylor said in a news release.
The Reward project would be the company’s first development in the fast-growing Beatty district, where AngloGold Ashanti has established a prominent position following its acquisition of Corvus Gold in 2022. The global miner’s most advanced property there is the North Bullfrog project, which hosts mineral reserves of 1 million oz. grading 0.43 g/t gold.
Augusta said the advancement of the Reward project is expected to help support the development of its larger Bullfrog project located across the valley, which has 1.2 million oz. of gold grading 0.53 g/t in measured and indicated resources. Both properties are located along the Walker Lane Trend, which has hosted large producers in the past including the Comstock Lode.
The company also said in Thursday’s press release that it is conducting a strategic review, which may include joint ventures and/or asset sales.
Shares of Augusta Gold gained 8.8% on the TSX by 2:30 p.m. ET, giving the company a market capitalization of C$63.6 million ($47 million).
