Gold is going gangbusters
Richard Taylor, Chief Executive Officer of Terramin Australia discusses some of the main opportunities for growth that he sees for the coming year and the challenges that come with global economic uncertainty.
As we get closer to Mines and Money Asia 2019, we’ve started to catch up with some of our speakers to hear more about market outlook and their corporate growth plans.
Here, Richard Taylor, Chief Executive Officer of Terramin Australia discusses some of the main opportunities for growth that he sees for the coming year and the challenges that come with global economic uncertainty.
How have the last 12 months been for you and the company?
The last 12 months have been busy with updating our scoping study for the high grade gold Bird-in-Hand project and acquiring rights to the historic Kitticoola gold mine in South Australia. The Scoping Study has an attractive NPV8 of $101m and IRR of 96% that underpins our next ses of project development and exploration. We have also been working with our Algerian partners on the major lead-zinc project at Tala Hamza and progressing optimisation work on an expanded throughput approach. All in all, a busy 12 months for both our precious and base metals business.
What opportunities do you see for the next 12 months? How is your company positioned to take advantage of them?
Gold is going gangbusters at present and we have one of the highest grade projects around. Advancing the approvals and feasibility study work will be a high priority for us. We see gold remaining strong in 2019. On the zinc side, we see stability in the near term and the medium term outlook being positive. We are well placed on current timing for Tala Hamza to enter production provided we can move ahead with approvals in a timely manner. We are happy to have the technical matters resolved with our partners on Tala Hamza and financing discussions underway.
What are the biggest challenges you are facing right now?
Global uncertainty and trade related matters are weighing on base metal investment sentiment. We believe that were these to be resolved, the zinc price would respond firmly and there are supply constraints on new capacity around the time Tala Hamza will come on-line.
How has the mining investment landscape changed over the last few years?
We followed the deterioration of sentiment in the back end of 2018 closely and, while sentiment has improved, appetite for new projects or projects returning to market has been slow to recover. We believe the fundamentals are right and that a reduction in volatility is all it needs for sentiment to change towards this segment.
What are your key goals for the next 12 months?
Progressing approvals and study works on both Bird-in-Hand and Tala Hamza and getting more rigs turning on our pipeline of exploration targets.
Can you share a few details for your spotlight presentation at Mines and Money Asia?
The focus of the Mines and Money presentation will be the upside potential from the Tala Hamza project.
Richard Taylor will be discussing the upside potential from the Tala Hamza project at the upcoming Mines and Money Asia, taking place in Hong Kong, 2-4 April 2019.