PC Gold makes ASX debut amid gold rush
Perth-based but Northern Territory-focused PC Gold became the latest gold developer to debut on the local bourse, closing its first day of trading up more than 15 per cent.
PC Gold’s management team rang the bell in Perth this morning after raising $13.35 million through its initial public offering priced at 25 cents per head.
The funds will go towards the development of the Spring Hill gold project, which is envisaged to be an open-pit mine before moving underground near Pine Creek in the Northern Territory.
The asset, which has 821,000 ounces of gold mineral resources, has an initial mine life of five years and production is targeted between 2027 and 2028, depending on processing plans.
As a private company, PC Gold’s backers have funded the development to the tune of $20 million, quadrupling the size of the asset from the 200,000 ounces of resources they purchased in 2016.
PC Gold will begin work on the feasibility study, a key component of which will consider investments in building its own processing facility or utilizing a third-party facility.
Agnico Eagle has an idle gold processing facility 26 kilometers down the road, for which PC Gold is in talks with the Canada-based gold miner about a potential leasing arrangement.
PC Gold CEO and major shareholder Ashley Pattison said the increase in the scale of the project; Funding requirements and the record gold price drove them to the public market.
He added that listing on the ASX provided core shareholders, who financed the majority of the development, with a way to hedge their exposure to the asset.
“Not only did we aggressively drill the asset to grow the resource base… we also sought to de-risk the asset from a development and production standpoint,” Mr. Pattison said.
The price of gold has recently risen above the $6000/ounce level as investors continue to flock to the safe-haven asset amid geopolitical uncertainty and trade tensions.
The yellow metal’s bull run has boosted the economics of some of the state’s underdeveloped and shuttered gold mines, such as Minerals 260’s Bullabulling gold project.
Famous but reclusive prospector Mark Creasy bought collapsed miner Calidus Resources’ gold mine from administrators last year, while others are eyeing IPOs.
Greatland Gold, Robex Resources and Ariana Resources are among the WA-based gold developers to hit the ASX so far this year.
Mr Pattison said he expected to benefit from the current gold price environment and hoped his medium- and long-term price forecasts would prove accurate.
The Spring Hill project is located within the historic Pine Creek goldfield, the site of the NT’s first gold rush in the 1870s.
NT Mining and Energy Minister Gerard Maley said the Spring Hill Project could provide around 180 jobs and around 145 ongoing operational roles at peak construction.
“This milestone is the latest chapter in a 150-year gold mining legacy at Pine Creek and will create investment, royalties and jobs for Territorians,” Mr Maley said.
“As part of our year of action, security and certainty, the country’s Liberal Government has removed red tape and unnecessary regulatory hurdles that previously hindered project development.”
PC Gold shares closed their first day of trading up more than 15 percent at 29 cents.
