Ausgold (AU4) Conference Transcript

Ausgold (AU4) Conference Summary - July 24, 2025 Company Overview - Ausgold is focused on the development of the Katanning gold project located in the Southwest of Western Australia, approximately 30 kilometers east of Katanning town and three and a half hours southeast of Perth [3][4]. Key Points from the Conference Feasibility Study - A definitive feasibility study was completed three weeks prior to the conference, outlining the potential for Ausgold to become a mid-tier Australian gold producer with attractive economics [4][12]. - The study indicates a resource of approximately 2.5 million ounces at a grade of 1.11 grams per tonne, with 91% of these ounces classified as measured and indicated [7][8]. - Proven reserves are estimated at 1.25 million ounces, with 84% classified as proven, indicating a high level of confidence in the resource [8][30]. Production Profile - The project is designed for a ten-year mine life, with an average production of 130,000 ounces in the first seven years, tapering off as stockpiles are drawn down [9][10]. - The processing plant is designed for a throughput of 3.6 million tons per annum, with potential for expansion to 5.5 million tons per annum [11][31]. Economic Metrics - The all-in sustaining cost is projected at $2,265 per ounce over the life of the mine, with lower costs in the initial years [12][18]. - At a base case gold price of $4,300 per ounce, the net present value (NPV) is estimated at just under $1 billion AUD, compared to a market cap of around $250 million AUD [12][13]. - If gold prices rise to $5,000 per ounce, the after-tax NPV could increase to $1.35 billion AUD, with an internal rate of return (IRR) of 68% and a payback period of twelve months [13]. Community and Environmental Impact - The project aims to diversify the regional economy of Katanning, which has been experiencing population decline and job scarcity [24][25]. - Ausgold plans to establish its own accommodation village to avoid competing with local housing, addressing community concerns about housing availability [25][26]. - The company is committed to environmental stewardship, with plans to mitigate impacts on local wildlife and preserve sensitive ecological areas [35]. Future Plans - The company is focused on drilling to expand the resource base, particularly down plunge and at satellite deposits, with a maiden resource expected from the Nanticat Bridge Zinger area early next year [36][37]. - Construction is anticipated to begin in mid-2026, with gold production expected before the end of 2027 [38]. Additional Insights - The feasibility study is designed to be credible and achievable, with a focus on building the project rather than seeking a takeover [14]. - The project has undergone extensive drilling, with nearly 300,000 meters completed, ensuring a well-modeled resource [22][23]. - The project is positioned competitively within the Australian cost curve, indicating a lower cost of production compared to many peers [20][21].