LionGold: Targeting 200,000 Ounces Annualised Gold...
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Media Announcement (For Immediate Release) LionGold: Targeting 200,000 Ounces Annualised Gold Production by 2014 Highlights : LionGold Corp’s recently released FY2013 annual report states that its annualised gold production target for 2014 has been raised from 120,000 ounces to 200,000 ounces. During the year, interests in six gold companies were acquired, with a combined transaction value of S$190 million. Gold sales reached S$33.5 million with the successful production ramp- up at Castlemaine Goldfield’s Ballarat Mine. As an active acquirer of gold assets, the steep fall in the prices of many gold mining companies from the start of 2013 improves expansion opportunities for this dynamic, acquisitive Group. SINGAPORE, 10 July 2013 - LionGold Corp Ltd (“LionGold” or the “Group”), Singapore’s first Main Board-listed gold company, has released its annual report for the financial year ended 31 March 2013. Over the period, interests in six gold companies, with a combined transaction value of S$190 million, were acquired. A substantial stake in a second Australian gold producer, Unity Mining Limited, has since been purchased, in May 2013. The Group’s mining portfolio now includes 5.5 million ounces of gold resources, of which nearly 900,000 ounces are classified as reserves. LionGold Corp Ltd (Incorporated in Bermuda) 59 Mohamed Sultan Road Sultan Link 02-08 Singapore 238999 Tel: (65) 6690 6860 Fax: (65) 6690 6844 [email protected] www.liongoldcorp.com
Transcript of LionGold: Targeting 200,000 Ounces Annualised Gold...
Media Announcement (For Immediate Release)
LionGold: Targeting 200,000 Ounces
Annualised Gold Production by 2014
Highlights :
LionGold Corp’s recently released FY2013 annual report states that its
annualised gold production target for 2014 has been raised from 120,000
ounces to 200,000 ounces.
During the year, interests in six gold companies were acquired, with a
combined transaction value of S$190 million.
Gold sales reached S$33.5 million with the successful production ramp-
up at Castlemaine Goldfield’s Ballarat Mine.
As an active acquirer of gold assets, the steep fall in the prices of many
gold mining companies from the start of 2013 improves expansion
opportunities for this dynamic, acquisitive Group.
SINGAPORE, 10 July 2013 - LionGold Corp Ltd (“LionGold” or the “Group”),
Singapore’s first Main Board-listed gold company, has released its annual report for the
financial year ended 31 March 2013. Over the period, interests in six gold companies, with a
combined transaction value of S$190 million, were acquired. A substantial stake in a second
Australian gold producer, Unity Mining Limited, has since been purchased, in May 2013. The
Group’s mining portfolio now includes 5.5 million ounces of gold resources, of which nearly
900,000 ounces are classified as reserves.
LionGold Corp Ltd (Incorporated in Bermuda) 59 Mohamed Sultan Road Sultan Link 02-08 Singapore 238999
Tel: (65) 6690 6860 Fax: (65) 6690 6844 [email protected] www.liongoldcorp.com
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Maiden commercial gold sales reached S$33.5 million with the successful production ramp up
at Castlemaine Goldfield’s Ballarat Mine. In support of the rapid build-out of the gold business,
the divestment of the non-core “green energy” assets was nearly completed.
Investors have responded positively to the Group’s gold-focused strategy. Proceeds of over
S$100 million were generated over the year through the private placement of new equity and
issue of convertible instruments. LionGold’s market capitalisation rose by 37% to over S$1
billion, and the return to shareholders was 8.7% in Singapore Dollars and 7.4% in US Dollars.
In US Dollar terms, this compares favourably with -4% and -34% for gold and junior miner gold
companies, respectively, in the FY2013 period.
Capital raisings and acquisitions have transformed LionGold’s balance sheet. Compared with
FY2012, net assets rose by over eight-fold to S$276 million. The Group ended the year with
nearly S$47 million in cash, and borrowings were reduced from S$31 million to S$3 million
following the issue of a US$23 million convertible bond.
To address the challenges ahead, a strong leadership team has been brought in to manage
and grow the gold mining business, led by Group Chief Executive Officer and Managing
Director, Nicholas Ng. The technical team has also been significantly expanded to integrate
and progress the newly acquired gold assets, and two veteran mining professionals were
appointed to the Board.
For LionGold’s existing operations in the financial year ahead, the Ballarat Mine is poised to
achieve its 40,000 to 50,000 annualised gold production target at an average cash cost of
US$850 per ounce. At Signature Metal’s Konongo Gold Project in Ghana, the exploration
programme has been accelerated, and a life of mine plan and metallurgical study are now
underway. The mine plan for Minera Nueva Vista’s Amayapampa Project in Bolivia will soon
be finalised, and production from a starter pit is expected in early FY2015. The timing of
investments in these and the Group’s other projects will be carefully balanced to consider
growth objectives and potential new opportunities.
In its Letter to Shareholders, the LionGold Board reiterates its commitment to support the
transformation of the Group into a mid-tier global gold mining company by 2014, targeting gold
resources of 10 million ounces and gold reserves of 2 million ounces, and reaching these
goals through organic growth and acquisitions. Given the investment opportunities which have
resulted from the current depressed prices of gold miners globally, the Group’s 2014
annualised production target has been raised from 120,000 ounces to 200,000 ounces.
Accordingly, the acquisition strategy will now focus more specifically on prospects that are in
production, or within 12 months of production, with reserve ounces and potential to expand the
average life of mine.
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The Letter to Shareholders states “…we believe the long-term outlook for [gold] is well-
supported by physical market dynamics. The steep fall in the prices of many gold mining
companies from the start of 2013 ultimately improves expansion opportunities for LionGold, as
an active acquirer of gold assets”.
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Junior Mining Index vs. Price of Gold 11 Jul 2003 - 5 Jul 2013
Dow Jones North American Select Junior Gold Total Return Index
Spot Price of Gold
Prices of Junior Gold Miners Have Fallen More Steeply Than the Price of Gold
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Castlemaine Goldfield’s gold room and processing plant at Ballarat Mine in central Victoria, Australia
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Exploration drilling at Signature Metal’s Konongo Gold Project in Ghana
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Amayapampa Village in Bolivia, near Minera Nueva Vista’s Amayapampa Gold Project
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For enquiries, please contact:
Lesley Bendig
Director – Investor Relations
Tel: +65 6690 6860
Email: [email protected]
About LionGold Corp Ltd (Bloomberg: LIGO SP / Reuters: LION.SI)
LionGold Corp Ltd (“LionGold or “the Group”) is Singapore’s first Main Board listed gold
company. The Group has rapidly established itself in the global gold mining industry. Since
March 2012, interests in seven gold exploration and mining companies have been acquired,
two of which are in production. Primary concessions are currently in Australia, Ghana and
Bolivia. Future expansion will be achieved through further acquisitions and organic growth.
For more information visit: www.liongoldcorp.com.
