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- After restarting drilling work at its Morning Star Project, AuStar Gold (AUL) has revealed a cashflow-positive month of July
- The company made $100,000 more from gold sales than it spent on gold production over the month
- On top of this, AuStar pocketed $320,000 from a provisional payment for its first concentrate shipment, but this is excluded from the sales figures
- AuStar has four more holes left to drill of a current underground diamond drilling campaign
- Chair Philip Amery said AuStar is also concentrating on a “very significant” regional exploration package
- Shares in the company teetered between red and green today before settling 8.2 per cent lower at 28 cents each
After restarting drilling work at its Morning Star Project, AuStar Gold (AUL) has revealed a cashflow-positive month of July.
In an operations and production update this morning, AuStar said it managed to sell 256 ounces of gold in July for an average price of $2606 per ounce, bringing in $673,000 in sales revenue.
The company said taking into account all annualised corporate and listing costs, this meant it made $100,000 more than it spent in July.
However, on top of the gold sales, the company produced 661 kilograms of concentrate over July, and pocketed $320,000 from part of a provisional payment for its first concentrate shipment. The company said this $320,000 is excluded from the monthly cashflow report.
On top of selling off some of the precious yellow metal, AuStar kept up its underground diamond drilling project at Morning Star, as highlighted in a July 23 update.
The company said as of today, it has four holes left to drill before it begins testing additional zones as outlined in the July update.
Results from this drilling campaign are expected later this month
AuStar Chair Philip Amery said July was a pleasing month for the company.
“Robust cost control and a strong effort from all members of the site and corporate team has meant AuStar Gold is now consistently delivering incremental improvement in all areas of its operations,” Philip touted.
“Achieving sustained positive cash flow for the month at both operational and group levels is an important milestone — particularly given this was achieved without accounting for the contribution of concentrate revenues,” he said.
He said as well as growing production revenue from Morning Star, AuStar is concentrating on a “very significant” regional exploration package.
It seems investors were struggling to make up their mind about their feelings towards today’s news. In a mixed day for the ASX gold subsector, AuStar shares teetered between red and green before finally settling 8.2 per cent down.
Shares closed worth 28 cents each in a $9.53 million market cap.
