Robin Bromby From: The Australian December 15, 2009
ONE hundred and seventeen years old -- and the Kalgoorlie goldfields are still going strong.
As Perth broker Hartleys reminds us, the region has accounted for about half of all the 201 million ounces of the yellow metal produced in Western Australia. That was at the end of 2008. Set the clock back to 1989, and Kalgoorlie had produced two-thirds of all the gold mined in the state.
Production now is dominated by the foreign majors -- Barrick Gold (50 per cent of Super Pit, Kanowna Belle), Newmont Mining (the other 50 per cent of Super Pit) and Gold Fields of South Africa (St Ives).
But Australian companies still have a foothold there. Hartleys has produced a 22-page study of the local mid-cap players -- the producers and those about to join their ranks.
Their top picks are:
Silver Lake Resources re-opened the historic Daisy Milano mine in 2007 with a relatively low capital outlay and has been generating good cash flow since then. The recent discovery of three new lodes within 170m of areas now being mined should lead to both production and mine life increases, and justify the doubling of plant capacity. SLR also has excellent exploration potential at both its Mt Monger and Murchison projects
AVO and FML also get a guernsey.
Cheers chicken
SLR Price at posting:
$1.07 Sentiment: Hold Disclosure: Held
