- Experienced management team
- Six million ounce gold resource
- Low-cost start up plans
- Exploration upside
What the company owns
Overall resources ring in at six million ounces of gold, including 1.3mln open-pittable ounces
There is significant exploration upside at Pilgrim’s Rest
What’s been happening?
In May 2019, the company completed a feasibility study for starter pits at its projects. In October it was able to source a ball mill from Glencore that’s capable of processing a million tonnes of ore per year. That should be enough capacity to allow for the processing of all the ore from the planned phase one and phase two developments.
What’s the plan?
The plan is to mine just over 200,000 ounces in the first five years, at an all-in sustaining cost of US$764 per ounce. That should generate EBITDA of around US$100mln, assuming a gold price of US$1,257.
In the first half of 2020, Theta plans to select contractors and secure the US$34mln project finance that’s required to get the starter operations going.
Construction will get underway in the second half of 2020.
Longer-term, open pit production will expand before a third phase takes the company into its underground ore. At that point production is likely to move to over 150,000 ounces per year.
Ability to execute?
Financing risk is probably the major factor here, but it’s worth noting the company has plenty of strength in dept on its board, both in regard to capital markets and in regard to technical execution.
Bill Guy, the chairman, is ex-Jupiter Mines, and has more than 25 years of mining industry experience behind him.
Managing director Rob Thomson has more than 35 years’ experience as a mining engineer.
Finn Behnken, a non-executive director, is an investment banker and mining engineer. And two other non-executives are fund managers.