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THETA GOLD MINES LIMITED - Corporate Spotlight

Theta Gold Mines currently controls 6Moz of near-surface gold resources aiming to build a... Theta Gold Mines currently controls 6Moz of near-surface gold resources aiming to build a >160,000 ozpa gold production base starting from the Stage 1 Theta Starter Pits, target to deliver 50,000 ozpa gold at US$823/oz from 2021. Theta Gold controls an entire gold system.More

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Corporate Spotlight

Theta Gold Mines currently controls 6Moz of near-surface gold resources aiming to build a >160,000 ozpa gold production base starting from the Stage 1 Theta Starter Pits, target to deliver 50,000 ozpa gold at US$823/oz from 2021. Theta Gold controls an entire gold system.
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Investor Update with Bill Guy - November

TGM TO BENEFIT FROM SA MINING SECTOR

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How Theta Gold Mines (ASX:TGM) will benefit from South Africa’s revamped mining sector

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How Theta Gold Mines (ASX:TGM) will benefit from South Africa’s revamped mining sector
Source: Theta Gold


  • The South African government is looking to revitalise its mining sector to help boost its economy in a post-COVID world
  • President Cyril Ramaphosa has outlined a plan for the country to target three per cent of global exploration expenditure while making it easier for miners to secure necessary licenses
  • This is part of South Africa's strategy to rebuild the country's mining sector back to its former glory
  • However, this means ASX-listed Theta Gold Mines (TGM) is in a prime position to cash in from the new strategy
  • The company is building up an open-pit mine near the town of Pilgrims Rest, which was the site of South Africa's very first gold rush back in 1873
  • With mining revitalisation in South Africa complementing Theta's clear-cut strategy, the company is a juicy stock for the savvy gold 
  • investor looking for the next "big swing"

South Africa, once the gold capital of the world, is looking to return to its mining roots to rejuvenate its economy in a post-COVID world.


Over recent decades, the nation's gold production has dwindled to a fraction of what it once was, and South Africa now ranks eighth for total gold production after being in the top spot throughout most of the 1900s.


Now, with South Africa's government looking to rebuild the country's mining sector back to its former glory, some ASX-listed gold stocks are in the perfect position to cash in.


A revitalised minerals sector

The South African government has opted to prioritise its mining industry as a way to offset the devastating economic losses wrought by the coronavirus crisis.


As part of the plan, the South African Government will develop a strategy over the next three months to target three per cent of global exploration expenditure. The plan will also halve the time it takes to secure relevant mining licenses, making it simpler for upstarts to dig up precious South African metals.


Importantly, the government will work to secure consistent electricity for the mining sector as Eskom, South Africa's main power provider, struggles to produce enough electricity to meet demand.


"Simplifying and modernizing mining regulation will unleash significant investment by business in exploration and production, generating substantial employment, both directly and indirectly, as well as contributions to the fiscus and foreign-exchange earnings," South African President Cyril Ramaphosa said, according to a document obtained by Bloomberg.


The move has been supported by the Minerals Council of South Africa, which is a mining industry employers' organisation made up of 76 members and representing 90 per cent of South Africa's mineral production by value.


The Minerals Council CEO, Roger Baxter, said the COVID-19 pandemic has just made an already-struggling economy suffer more.


"The economy has run into several structural constraints (electricity, rail and ports) and institutional constraints (red-tape, declining capacity in the state to enforce law and order, etc.), which have basically resulted in the collapse in the country’s productivity growth and potential growth rate," Roger said.


"These structural and institutional constraints need to be urgently addressed," he said.


"Like the rest of the economy, the mining industry has significant potential, and if the issues holding it back were to be addressed, this potential could be unleashed, enabling the industry and the country to embark on a new path of inclusive growth and investment, and ultimately, a better future for all.”

Roger Baxter, September 2020

What does this mean for the ASX?

On the Australian share market, there are two prominent up-and-comers looking for gold in South Africa: West Wits Mining (ASX:WWI) and Theta Gold Mines (ASX:TGM).


West Wits Mining

West Wits has was thinly traded four most of the year, with shares floating around a flat one-cent each from September 2019 until late-June 2020.


However, the company's share price has quadrupled over the past three months, rising to two cents each on June 29, then hitting a four-year-high of four cents per share on Friday, September 18.


The company completed an independant scoping study on its Witwatersrand Basin Project in South Africa on July 30, and since then has raised $3.4 million for a bankable feasiblity study at the project. West Wits plans to kick off gold production in mid-2021.


Theta Gold Mines

Theta Gold, on the other hand, has not yet had this share price "take-off" moment in 2020, despite being considerably more advanced.

Theta shares have been trading between 20 and 30 cents for most of 2020, having made it through the brutal March COVID-induced sell-off relatively unscathed.


Theta is also targeting production for 2021, and its strategy is clear: use new mining techniques to take advantage of old gold mines.

A case study by mining expert CSA Global explained that historically, South Africa was so rich in gold and full of easy targets that as soon as a target proved difficult to mine, early prospectors would pick up their tools and look for a better spot.


Since then, of course, technology has made mining easier and far more efficient — making these gold-rich targets much easier to mine than they were a century ago.


Thus, Theta plans to re-visit these old sites and use modern tech to extract what's under the ground. The company's flagship Theta Open-pit Starter Project is near the town of Pilgrims Rest, which was the site of South Africa's very first gold rush back in 1873.


The project has a resource base of over 44.8 million tonnes at 4.18 grams per tonne for over six million ounces of gold, and Theta is targeting a production rate of 150,000 ounces of gold per year.


Moreover, Theta just headhunted a new CEO and Chief Operating Officer (COO) from South African big-cap Harmony Gold.

The company appointed Mitford Mundell as CEO of African operations and Jacques Du Triou as COO of African operations. Both men will begin their work at the company on October 1, 2020.


Looking ahead, Theta plans to have an open-pit permit for mining and project financing by the end of the year, significantly de-risking operations. The company has recently dual-listed on the over-the-counter (OTC) markets in the U.S. under the stock code TGMGF, meaning investors have several options when chasing a stake in the company.


With mining revitalisation in South Africa now complementing a clear-cut strategy, Theta Gold is a particularly juicy stock for the savvy gold investor looking for the next "big swing".


The question, then, remains: will investors seize the opportunity while they can, or will they kick themselves for waiting too long?


Read the full article on The Market Herald here: https://themarketherald.com.au/how-theta-gold-mines-asxtgm-will-benefit-from-south-africas-revamped-mining-sector-2020-09-25/



VIDEO

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Investor Update with Bill Guy - November 




US List - Updates with Theta Gold Chairman, Bill Guy  - July 2020





Investor Updates with Theta Gold Chairman, Bill Guy - July 2020




Investor Updates with Theta Gold Chairman, Bill Guy - 22nd May 2020




Video Interview with Peter Rose, Brandon Hilll Capital - 18th May 2020





Video Interview with Bill Guy, Chairman Theta Gold - April Updates 




The Market Herald Bulletin: Theta Gold Mines’ (ASX:TGM) ball mill arrives at South African project site - 23rd March. 2020




MAKING THE MOST OF SOUTH AFRICAN MINES

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15th June 2020 - The Market Herald


When gold was discovered in the Witwatersrand Goldfield in South Africa in the late 1800s, the country was quickly thrust into the spotlight as the world's gold hotspot. 


In fact, gold was so abundant across the land that until the 2000s, South Africa was by and large the biggest gold producer on the planet. It was only in 2007 that South Africa was overtaken by China as the world's top gold producer. 

However, despite being mined for over a century and producing over 40,000 metric tonnes, much of the Witwatersrand area has experienced little-to-no exploration work.


A case study by mining expert CSA Global explains that historically, the region was so rich in gold and full of easy targets that as soon as mining became difficult, early prospectors would simply pick up their tools and search for a better spot. 

This means scattered across the prolific goldfield are underexplored historic mines and shallow exploration targets that have never been revisited after they were abandoned over the past century of mining. 


A giant goldfield in South Africa’s Eastern Goldfields is reawakening. Image: Theta Gold Mines

And, with recent breakthroughs in technology, extracting the gold from these mines is far easier than it was a century ago. Moreover, with advanced geophysical survey capabilities, companies can figure out what's beneath the surface before they even decide to start mining. 


As such, ASX-listed Theta Gold Mines (TGM) is making the most of the opportunities in South Africa by restarting mining in the historic East Transvaal Goldfields region in the Witwatersrand Basin. 

Theta's projects


Theta's flagship project is near the town of Pilgrims Rest, which attracted the second rush of gold prospectors in the 1800s. 

Theta is bringing open-pit mining to the area. With a resource base of over 44.8 million tonnes at 4.18 grams per tonne for over six million ounces of gold, Theta's plan is to become a mid-cap gold producer, targeting a production rate of 150,000 ounces of gold per year. 


The majority of Theta's East Transvaal tenements are held by its subsidiary, Transvaal Gold Mining Estate (TGME), which was also the first incorporate gold mining company established in South Africa in 1895. 


Image: Theta Gold Mines

The project, known as the TGME Project, is owned 74 per cent by TGME and 26 per cent by a Black Economic Empowerment (BEE) entity. 

Importantly, the project has 43 known historical mines across its 620-square-kilometre area. Theta believes that open-pit mining is the key to unlocking the profits from these deposits. 

2020 wins


Over 2020 so far, Theta has made some solid progress towards bringing its Theta Open Pit Starter project to production, which is the first phase of the wider open-pit project. 

The Starter Project includes the Columbia Hill deposit and part of the Theta Hill deposit in the Pilgrims Rest area. 

Image: Theta Gold Mines


Importantly, an optimised feasibility study was released on April 20, in which the company highlighted expected earnings before interest, tax, depreciation and amortisation (EBITDA) for the project of US$150 million (roughly A$216 million) and a net present value (NPV) of US$85 million (around A$122 million). 


The company is expecting the project to produce 49,500 ounces of gold over its first year, with 260,000 ounces to be delivered over the 6.5-year mine life. 


In its latest quarterly report, the company said the 2.5-megawatt ball mill it bought in October 2019 has been safely delivered to site.

Theta has also continued discussions with several contractors and engineers to build its planned process plant. 

What's more, Theta's cost-efficiency means the project was recently touted by researchers at Brandon Hill Capital (BHC) as one of the "lowest capital costs of any gold mine development that BHC have seen for a long time". 


The BHC report revealed that a typical project of such scale would cost around US$100 million (approximately A$144.36 million). With Theta's US$30.2 million (about A$43.6 million) in expected expenses, this means the company is building up a major project for less than a third of the expected price. 


Gold set to boom

Even more important, however, is how expected price of gold is set to boom on the back of the COVID-19 pandemic. 

Typically, economic crises cause a surge in the price of gold. For example, over the Global Financial Crisis, gold went from US$726.08 per ounce in early November 2008 to US$1873.70 by September 2011. 


Over the Great Depression of the 1930s, the price of gold climbed from roughly US$300 per ounce in September 1929 to over US$520 per ounce in September 1933. 

Over the 1973 OPEC oil price shock, the price of gold rose from roughly US$400 per ounce to over US$700 per ounce. By the start of the 1980s, one ounce of gold was worth over US$2000. 


Gold has already shown incredible resilience in the COVID-19-induced economic crash. With the virus still spreading, however, it's likely we've not yet seen the worst of it yet. 


As such, economists are now claiming gold prices of up to US$10,000 per ounce are not unrealistic. Best-selling author Jim Rickards, U.S. Global Investors CEO Frank Holmes, and Euro Pacific Capital CEO Peter Schiff have all said the US$10,000-per-ounce price tag is a reasonable and rational assumption. 


For Theta, this is particularly pertinent. Given the company's plans to produce gold from known historical deposits, Theta is able to skip a major step in the conventional exploration process. 

Theta's plans to build a low-cost operation with modest production numbers could launch the company into some major returns if the price of gold moves as predicted.



The company's share price suggests investors are starting to realise this. Over 2019, Theta shares gained roughly 70 per cent to move from 10 cents each to 17 cents. In 2020, so far, company shares have consistently traded above 20 cents. 


Gold is already in the spotlight as a "safe-haven" sector in an otherwise-volatile 2020 economy. The challenge for investors now, then, is to make sure they pick the gold stock with the highest possibility of returns. 


With Theta's steady, low-cost progress in South Africa, the company is proving to be a reliable and highly-prospective bet.


Read the full article on The Market Herald Here

THETA UPDATE EA APPROVAL TIMELINE

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Discovery Africa (ASX:DAF) begins assessment at Warriedar


  • Theta Gold Mines (TGM) has provided an update to shareholders on its Environmental Authorisation (EA) timeline for one of its South African assets
  • The mining company has applied for an amendment to the Mining Right 83 (MR83) to also permit open pit mining
  • MR83 — which is part of the company's Theta (Open Cut) Project — is already EA approved for underground mining and ore processing
  • TGM recently received a letter from the South African Department of Mineral Resources and Energy acknowledging its amended permit was being reviewed
  • The Department also advised Theta it can expect a decision on the open-pit mining request sometime next month
  • Theta Gold Mine is trading up 1.61 per cent at 31.5 cents per share

    Theta Gold Mines (TGM) has announced an update to shareholders on its Environmental Authorisation (EA) timeline for one of its key South African assets.

    The ASX-listed mining company has applied for an amendment to Mining Right 83 (MR83) from the South African Department of Mineral Resources and Energy.

    Theta wants MR83 — which is part of the company's Theta (Open Cut) Project —to be given the environmental green light for open-pit mining.

    The asset has already been EA approved for underground mining, ore processing and depositing residues onto an existing tailings dam.

    In a letter received yesterday, the Department of Mineral Resources and Energy told TGM it had received the amended permit and it was being reviewed.

    The authoritative body also advised Theta it could expect a result by the end of November at the latest.

    "We are pleased to receive the DMRE’s confirmation of support towards our EA application for MR83 and its commitment for a decision by the end of November," Theta Gold Chairman Bill Guy stated.

    "Through the EA process, Theta Gold has implemented a positive and wholistic environmental strategy that has gained traction with local communities," he added.

    Following the EA timeline update, Theta Gold Mine is trading up 1.61 per cent at 31.5 cents per share at 2:55 pm AEDT.

    READ FULL STORY HERE
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