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Highlights        

  • De Grey Mining is a gold exploration and project development company with focus on Western Australia
  • In FY24, DEG’s revenue increased by 301.56% YoY to AUD 16.25 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 ASX-listed gold exploration and project development company with focus on Western Australia. The company is focused on progressing its Hemi Gold Project, Pilbara.

In the financial year 2024 (FY24), DEG’s revenue jumped 301.56% YoY to AUD 16.25 million and losses decreased by 9.39% YoY to AUD 17.22 million. The company ended FY24 with a cash and cash equivalent balance of AUD 686.64 million, up 509.23% over previous corresponding period.

During the reported period, the company was granted a mining lease for a 21-year period which covers the Hemi resources and their immediate surroundings. The period saw the release of the Hemi definitive feasibility study, advancement in gaining environmental approvals and capital raising programs.

Top 10 shareholders of DEG

The top 10 shareholders of DEG have around 41.16% shareholding in the company, while the top four have nearly 29.70% 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

Through an ASX update dated 26 august 2024, the company secured a loan agreement worth AUD 15 million with the northern Australia Infrastructure Facility (NAIF) to assist the Hemi Gold Project. This loan is a part of a AUD 1 billion senior debt facility, with term sheets from commercial banks already in place for the remaining funds.

Final documentation which includes an AUD 130 million cost overrun facility is anticipated to be finalised by December 2024.

Outlook

The Hemi project, spanning across 2,500km2, is less than four years old and includes numerous unexplored targets, therefore offers substantial resource expansion and discoveries opportunities.

By the end of December 2024, the company expects to complete project financing for Hemi, with the final investment decision contingent on the timing of final environmental approvals.

In the second half of 2026, the company intends to initiate gold production.

Share performance of DEG

DEG shares closed1.40% higher at AUD 1.085 apiece on 10 September 2024. In the past one year, DEG’s share price has declined by almost 15.30% and in the last three months it has surged by 2.36%.

52-week high of DEG is AUD 1.424, recorded on 04 December 2023, and 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 10 September 2024. The reference data in this report has been partly sourced from REFINITIV.