AAU (ASX) Ann: Antilles Gold Raises $1.58 Million for Projects in Cuba

Originally posted by blakesley: ↑

Thanks @7seven7. A good watch. My notes from it below.
Neuva Sabana
Been dealing with a group for 2 years (offtakes?). Should have term sheet by end Oct so hopefully signed by end of calendar year.
Should return 25-30M USD per year (split across partners) from end of 2025.
Current LOM 4 years but should be up to 8. May morph into El Pilar.
Mining fleet hired from Volvo.
Construction commenced by end of year.
Cost $32-33M USD to develop (inc $1.5m USD for concession in El Pilar). $25M debt from financier (in discussions?). Could pay debt off in 9 months but likely 18 months.
New project
Negotiating Quartz vein gold structure project – current mostly indicated MRE of 270,000 oz at 4.5g/tonne. AAU geos confident of a 1M oz deposit across 10 structures.
Hoping to add to portfolio on trip to Cuba in Oct. Very keen to bring into portfolio.
Cost $40-50M USD range to produce 70,000 oz gold per year. Not certain that AAU will pull off.
La Demajagua
9 yrs open pit mine life with potential to double by going underground.
1,000,000 gold equivalent in MRE.
Market changed significantly since scoping study. Trafigura had offered offtake of total tonnage but changed due to Chinese taxes on As. Needed to refocus project (oxidise to dore).
Sb - production per year same as what is being produced in Aus to date. Paid by smelters 47% (I thought it was 57% from announcement).
2023 Scoping study – $350M USD surplus cash over LOM. Looking to increase to about $750M USD. This is due to inclusion of Sb and gold price movements.
Thinks scale/ profitability will enable partner. Targeting Chinese company with 2 stage CIL roasting experience.
May sell 30-50% project. Even at 30% ownership AAU would get $25-30M USD/ year.
Production timeframes
1.Neuva Sebana - First project underway
2.Third project Quartz vein – would actually become second built
3.Get La Demajagua project development ready. More work required and probably more drilling to firm up antimony estimates.
Questions
Sb – well advanced with sales contract in China. Not flooded with enquiries about SB as have already been in contact with suppliers.
Followed Costerfield in vic.
Gold dore – likely go to Switzerland/ Canada for processing.
JV can go into partnership with third party for exploration of Cu deposits. Could be project specific farm in and not JV. Will start searching world for someone who likes projects.
LD partnership could be project specific as well and not JV.
Dominican Republic
Sale of assets – proving fairly difficult. Sold oxy plant for 750k AUD. Difficult to sell mills within country. Most buyers put off by DR govt attitudes. Not expecting a lot of money in the short term.
Arbitration Resolution – what Govt owes is defined. However, AAU tax payments aren’t resolved. I got a bit hazy on the basis for this but go watch the video. This is a real problem and Brian doesn’t know when it will be resolved. Offered numbers but DR disputing this. Could go on forever. Brian has secret weapon to launch onto Govt to bring to end. May do this soon.
Near term catalysts
·2 weeks – revised mine plan and MRE.
·1 month away - Upgrade financial model
·Financing/ offtake agreement – most important thing to happen in next 3 months.
·Early CY 2025 – CAPEX/ OPEX costs for for LD plant.

my take is lots of promise, just not sure how much extra cash AAU will need to progress all of these activities prior to getting NS cashflow at end of 2025.

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Thanks blakesley great summation. The quartz mine would be la jacinta ? Good income from this is projected.

so by 26 we are looking at 70m per year plus possibilty of part sale 30m? A very healthy start plus the beginnig of bringing el P into focus and exploration of sierra madre.

all up 26 will be the company maker i sugggest.

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Last 0.3¢		Change -0.001(25.0%)		Mkt cap ! $6.495M

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0.4¢	0.4¢	0.3¢	$6.077K	1.645M

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