WILTON RESOURCES CORP LIMITED (SGX:5F7)
Wilton Resources Corporation Limited - On Track To Full Scale Production
- Wilton Resources Corporation Limited (SGX:5F7) is principally engaged in the exploration and mining of gold, and production of gold dore in Indonesia. Its flagship project is the 96% owned Ciemas Project in the Sukabumi region of Indonesia.
- As at 30 June 2018, 25,203kg (810,295oz) of probable reserves from 3.26m tonnes of ore at a grade of 7.7 grams per tonne (g/t) have been discovered at Ciemas. The key mining license for Ciemas is valid for 19 years from 5 October 2011 to 7 September 2030.
Maiden sale of gold in June 2018.
- Wilton Resources achieved first gold pour in August 2017 following the completion of operation of its three leaching pools over 2017 and 2018. These leaching pools have the capacity to process up to 1,000 tonnes of ore per leaching cycle of up to four weeks in duration.
- In FY18 ended June 2018, the group processed a total of 9,000 tonnes of ore to obtain 15,003 grams (482oz) of gold. In turn, Wilton Resources posted maiden revenue of about US$0.32m and an impressive gross profit margin of 33% in 4QFY18 after selling 7.7kg of gold at about US$1,274/oz.
New plant to be ready by June 2019.
- The effective yield of the leaching pools work out to about 1.67g/t. Wilton Resources has commenced construction of a 500 tonne per day (tpd) carbon-in-leach (CIL) plant that is capable of processing higher grade ores at a high recovery rate of about 90%. The plant can be expanded to increase capacity to 1,500tpd.
- According to the Independent Qualified Person’s Report (IQPR) dated 30 September 2018, a 1,500tpd CIL plant will raise production to 143kg (4,600oz) in 2019, followed by 2,905kg (93,400oz) in 2020, etc.
Recent restructuring.
- Recently, Wilton Resources injected its 99% holding of Ciemas into an Indonesia listed company Renuka Coalindo, in exchange for a 96.95% stake in the latter, at a valuation of IDR3,766 billion (S$363m). Hence, Ciemas is now being directly held by an Indonesian entity and would not be subject to foreign ownership limits.
- The balance sheet of Wilton Resources is also being strengthened via its holding of more liquid listed shares.
IQPR valuation implies > 50% upside.
- We are excited by Wilton Resources’s impending ramp up of production but leave Wilton Resources unrated pending detailed financial modelling.
- Do Gold Miners Deserve A Relook? See report: Gold Miners - High Gold Price To Drive Interest Towards Miners
Liu Jinshu
Tayrona Financial Research
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http://www.tayronafinancial.com/
2019-03-12
SGX Stock
Analyst Report
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SAME
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