Australian Gold: Solid June Q production so far, but Costs & Guidance yet to come

Research evidence excerpt

Australian Gold: Solid June Q production so far, but Costs & Guidance yet to come

h of which

has the potential to significantly impact industry performance.

3) CYL faces risk as a developing mining company with a project that is expanding and new

mines commencing production to fill its Plutonic Mill.

4) Further, the current gold pricing environment presents elevated risks to the upside and

downside, with recent volatility reflective of gold as a speculative asset.

5) CYL also has an exploration asset in Victoria that is not yet permitted for production.

Genesis Minerals:

Our price target is based on DCF with a 6% WACC and a US$3,250/oz long-term gold price.

Investment risk inherent in the resource sector includes, but is not limited to movement of

commodity price and currency which may differ materially from the assumptions used in this

report. Furthermore, the sector is subject to political, financial and operational risks, each of

which has the potential to significantly impact industry performance. Mid/small cap gold

miners have added volatility in reserve extension risks. GMD have the added risk of project

growth and delivery, in particular due to the age of their assets (Gwalia). Risks beyond the

base case to our forecasts include delays to production ramp up, delivery and potential cost

escalation in late stage delivery.

Newmont Corporation:

We point out to investors the potential risks inherent in the mining sector including but not

limited to, the volatile nature of commodities prices which could potentially be significantly

different from expectations. Furthermore, Newmont is also exposed to other risks including

political, financial and operational risks which all have the potential of significantly impacting

company performance.