Aurum Resources
Primary ticker: ASX:AUE
Stage of development: Exploration
Primary minerals: Gold
Project to promote: 1.6Moz Boundiali Gold Project 1.6Moz & 0.87Moz Napié Gold Project
Project location: Côte d’Ivoire
Website: www.aurumres.com.au
Corporate presentation:
Corporate video:
Aurum is an Australian gold explorer with a proven track record in Côte D’Ivoire. We have 2.5 million ounces of gold across two projects, including the expansive 1.6Moz Boundiali gold project. Our management team, who built and sold the Abujar mine for ~A$800 million, is aiming to replicating that success with Aurum.
We control costs and accelerate discovery with our own fleet of eight diamond drill rigs. Plus, we’re aggressively growing through acquisitions like our recent takeover of Mako Gold.
With a strong cash position, supportive shareholders, and a large prospective land package in a prolific gold region, Aurum is poised to deliver exceptional value. Invest in Aurum and be part of the next big gold discovery in West Africa.
Cash: AUD23M
Debt: /
Major shareholders:
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED – 10.21%
CITICORP NOMINEES PTY LIMITED – 7.74%
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED – 6.97%
Yao N’Kanza – 5.06%
Caigen Wang – 4.56%
Management ownership – 14.45%
Financials
Management Profile
Dr. Caigen Wang and Mark Strizek are accomplished mining professionals who spearheaded the development of Tietto Minerals, culminating in its A$800 million acquisition. Dr. Wang, with a PhD in Mining Engineering, founded and led Tietto from exploration to gold production at the Abujar Gold Mine in Côte d’Ivoire. Mr. Strizek, a geologist with 30 years of experience, served as Executive Director, providing key geological and development expertise. They bring their combined leadership, technical, and operational experience to Aurum, with the aim of replicating their prior success and generating significant value for shareholders.
What is your rationale for taking part in 121 Mining Investment?
Gold investors willing to invest in West African gold
What recent news would you like to highlight to investors attending?
31 December 2024 Aurum delivers 1.6Moz Maiden JORC Resource at Boundiali Gold Project
What are your key goals for the next 3, 6 and 12 months?
3 Months:
25,000 exploration drilling
6 Months:
Another 25,000m of diamond drilling First Resource Update
12 Months:
Another 50,000m of drilling rounding off 100,000m for year. Second Resource update and PFS
What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?
Exploration Risk:
Challenge: Even with the best geological data, mineral exploration is inherently risky. There’s no guarantee that exploration will lead to economically viable discoveries.
Mitigation: We mitigate this risk by:
Focusing on a well-known gold producing region (Côte D’Ivoire) with proven potential.
Leveraging our experienced team’s expertise in identifying and evaluating promising targets.
Using advanced exploration techniques and our own drill rigs to efficiently and cost-effectively explore our extensive land package.
Diversifying our portfolio with multiple projects at various stages of development.
Operational Risks:
Challenge: Operating in West Africa presents challenges like political and social instability, infrastructure limitations, and potential permitting delays.
Mitigation: We mitigate these risks by:
Building strong relationships with local communities and governments.
Adhering to high environmental and social responsibility standards.
Employing experienced personnel with local knowledge and expertise.
Commodity Price Volatility:
Challenge: Gold prices fluctuate, impacting project economics and investor sentiment.
Mitigation: We mitigate this risk by:
Focusing on discovering high-margin deposits that are more resilient to price fluctuations.
Maintaining a strong cash position to weather market downturns.
Continuously evaluating and optimizing our exploration and development strategies to ensure profitability at various price points.
Competition:
Challenge: The gold exploration industry is competitive, with many companies vying for the same resources and investment capital.
Mitigation: We differentiate ourselves by:
Our proven management team with a track record of success.
Our innovative approach to exploration, including owning our drill rigs.
Our strategic focus on acquiring undervalued assets.
Our commitment to building strong relationships with stakeholders.
Aurum is well-positioned to achieve its goals and deliver strong returns for our investors.
What do you think makes your company such a compelling investment?
Experienced Leadership with a Proven Track Record: Our management team has a history of success in Côte D’Ivoire, having previously built and sold a gold mine for A$800 million. They possess the expertise and knowledge to navigate the challenges of exploration and development in this region. This significantly de-risks the investment as compared to a company with an unproven team.
Significant Existing Resources and Exploration Upside: With 2.5 million ounces of gold added in 12 months across two projects, Aurum has a solid foundation for future growth. The large land package and ongoing exploration activities suggest substantial potential for further discoveries, increasing the potential return for investors.
Strategic Acquisitions and Growth Strategy: The recent acquisition of Mako Gold demonstrates Aurum’s commitment to aggressive growth and value creation. By acquiring undervalued assets and leveraging their exploration expertise, Aurum can rapidly expand its resource base and enhance shareholder value.
Operational Efficiency and Innovation: Owning and operating eight diamond drill rigs gives Aurum a significant competitive advantage. This allows for greater control over exploration activities, reduced costs, and faster discovery timelines, ultimately leading to increased efficiency and potentially higher returns for investors.
Strong Financial Position and Supportive Shareholders: Aurum’s strong cash balance provides the financial flexibility needed to execute its exploration and growth strategies. Combined with supportive shareholders, the company is well-positioned to capitalize on opportunities and weather market fluctuations.
In essence, Aurum offers investors a unique combination of proven leadership, significant resources, strategic growth, operational efficiency, and financial strength, making it a compelling investment opportunity in the gold exploration sector.
What are the top 3 key investor takeaways?
Proven Track Record: Our management team built and sold a mine in Côte D’Ivoire for A$800 million and is now replicating that success with Aurum, with 2.5Moz added in 12 months.
Aggressive Growth Strategy: We’re accelerating exploration with our own drill rigs and acquiring undervalued projects like Mako Gold to maximise shareholder value.
Prime Location & Financial Strength: We have a massive land package in a prolific West African gold region and a strong cash position to fund our growth.