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Highlights  

  • De Grey Mining is a gold exploration and project development company with focus on Western Australia
  • In 1HFY24, DEG’s revenue increased by 421% YoY to AUD 6.62 million
  • Gold Road Resources Ltd has the highest stake in the firm with a shareholding of 17.27%

De Grey Mining Limited (ASX: DEG) is an Australia based gold exploration and project development company with focus on Western Australia. The company is actively progressing its Hemi Gold Project, located in Pilbara.

In the first half of the financial year 2024 (1HFY24), total revenue of DEG shot up by 421.13% YoY to AUD 6.62 million and receipts from customers increased by 12.79% YoY to AUD 0.18 million. The period saw a 5.68% YoY fall in losses from AUD 7.44mn in 1HFY23 to AUD 7.02mn in 1HFY24.

During the reported period, exploration and development work advanced at the Hemi gold project, including unveiling of definitive feasibility study, securing mining lease and commencement of project implementation.

Top 10 shareholders of DEG

The top 10 shareholders of DEG have around 40.87% shareholding in the company, while the top four have nearly 29.71% stake. Gold Road Resources Ltd and BlackRock Investment Management (UK) Ltd. have the maximum stake in the firm with a shareholding of ~17.27% and ~6.19%, respectively.

Recent business update

On 15 July 2024, through an ASX update, the company shared its June quarter update. During the quarter, the company’s focus was on progressing its Hemi gold project, achieving milestones such as awarding critical equipment packages and completing the process plant layout.

The quarter ended with an institutional placement and entitlement offer of AUD 600mn. At the end of June quarter, cash balance of DEG stood at AUD 867 million and it is expected to cover costs for the Hemi gold project.

Outlook

In the fourth quarter of 2024, the company expects to conclude the formal documentation for project financing. In the latter half of 2024, DEG expects to begin full construction activities at the project. The aim is to achieve first gold production by the latter half of 2026.

The company is undertaking drilling campaign to extend mineral resources at the Western Hub and Hemi.

Share performance of DEG

DEG shares closed 1.24% higher at AUD 1.22 apiece on 16 July 2024. In the past one year, DEG’s share price has declined by almost 17.74%, and in the past one month, it has increased by 20.79%.

The 52-week high of DEG is AUD 1.503, recorded on 17 July 2023, and the 52-week low is AUD 0.985, recorded on 14 June 2024.

DEG Daily Technical Chart, Source: REFINITIV

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 16 July 2024. The reference data in this report has been partly sourced from REFINITIV.