Gascoyne Resources Bounces Back for Admirable Quarter

THE DRILL SERGEANT: Gascoyne Resources made a triumphant return to the boards of the ASX after coming out of administration exile in October 2020.

During the initial post-administration period, the focus of the company was on solidifying its business plan and reinvigorating the organic growth pipeline for the company’s 100 per cent-owned Dalgaranga gold project through exploration activities.

Gascoyne Resources has commenced a program to install more mature environmental, social and governance (ESG) policies, processes and reporting.

The company’s March Quarterly Report highlighted how well it has bounced back, including highlights of:

Free cash flow generation of $9.4 million for the quarter;
19,203 ounces produced for the quarter; 59,899 ounces FY2021 year to date;
19,073 ounces sold at an average realised price of $2,495 per ounce;
AISC $1,114 per ounce for the quarter; $1,224 per ounce financial year to date; and
On track for upper end of FY2021 production guidance of 70,000 to 80,000 ounces at an AISC of $1,200 to $1,300 per ounce.

“We…remain on track to meet the upper end of production guidance for FY2021 of 70-80koz at an AISC of $1,200 – $1,300/oz,” Gascoyne Resources managing director and CEO Richard Hay said.

“Paying down $19 million of debt further strengthened the balance sheet with net cash of $9.5 million and a cash balance of $27 million.

“Our FY2021 exploration budget was doubled during the quarter and early drilling success at Tanqueray was a highlight, with an intersection of 9m at 7 grams per tonne in one RC hole.

“Assay results have been slow to come in due to the industry wide very high laboratory demand, and we look forward to reporting more results in the June quarter.”