Azumah Resources

Primary ticker: ASX:AZM
Stage of development: Exploration, Development
Primary minerals: Gold
Project to promote: Wa Gold Project

Live financials

Azumah Resources Limited is a Perth-based, ASX-listed exploration company focused on its Wa Gold Project, Upper West Region, Ghana, West Africa. It holds 2,400km2 of licences that include >150km strike of prospective Birimian terrain, the rocks that host the majority of West Africa’s major gold mines. It has delineated 2.1Moz Mineral Resources and defined an Ore Reserve of 624,000oz grading 2.14g/t Au and is presently focused on growing these to underpin development. Systematic exploration has identified three flagship deposits: Kunche, Bepkong and Julie plus several satellite deposits. An innovative funding deal with PE group, Ibaera Capital Fund, will see Azumah free-carried for the next two years and an expenditure of A$17M which will earn Ibaera a 47.5% direct interest in the Project. In 2018 the partnership plans to drill 47,000m of combined, auger, aircore, RC and diamond holes.

Management Profile

Stephen Stone – Managing Director

Stephen has spent his mining career exploring for minerals mainly in Africa, Australia and China. After graduating as a Mining Geologist from University of Wales, Cardiff College, he spent several years on large-scale underground copper mines on the Zambian Copper Belt. In 1986 he moved to Western Australia, first to Kalgoorlie and then to Perth, and since then has been instrumental in the formation, the listing in Australia and Canada, and then the management, financing and corporate development of several exploration companies. Stephen joined Azumah in late 2006, initially as Chairman, then Executive Chairman and since 2009 as Managing Director.
He was attracted to Azumah’s extensive and prospective land holdings and firmly believes that its Wa Gold Project is one of the best undeveloped deposits in West Africa. He is determined to see it through to production in the next couple of years.
Stephen is also an executive director of ASX listed exploration company, Castle Minerals Limited, a member of the Australasian Institute of Mining and Metallurgy, a Fellow of the Australian Institute of Company Directors, and is a member of the editorial board of International Mining Magazine.

What is your rationale for attending 121 Mining Investment?

To meet investors so that they can fully appreciate and participate in the tremendous investment upside that Azumah offers right now and as it transforms from explorer, to developer and to production status over the next two years.

What recent news would you like to highlight to investors attending?

I will highlight recent announcements about Mineral Resource upgrades, Feasibility Study progress, the exploration programme designed to boost Ore Reserves and other important investment catalysts. Subject to availability, I may also be able to share details of the proposed production outlook, capital and operating costs and key financial metrics.

What are your key goals for the next 3, 6 and 12 months?

3 Months:

Drilling for discovery, resource and reserve increases – Release of progressive results emanating from that – Release of study update and preliminary financial metrics

6 Months:

Competitive pricing to lock in capital and operating costs – Reserves and Study finalisation – Project financing discussions

12 Months:

Completion of Feasibility Study, project financing and development decision

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

We need to increase reserves to strongly underpin a development decision that will meet market expectations for a stand-alone, new gold development in West Africa. We are not that far away.
We have already considerably de-risked to Project so the additional risks, apart from the gold price and fiscal environment, are those standard with working in the region whilst noting that Ghana is a particular safe and reliable jurisdiction with a long history of gold mining and Western investment.

In a sentence, what do you think makes your company such a compelling investment?

It’s an outstanding, value-packed company that is ridiculously undervalued on any fundamental and comparative metrics and with a series of landmark announcements and investments catalysts on the horizon.