Australian gold producer Red 5 [ASX:RED] released an announcement this morning that it has delivered on a second consecutive month of record gold production for April 2023.
Production guidance is also maintained at 90-105,000 ounces at AISC of $1,750-1,950 an ounce.
RED rose by 6% in the morning trade, up around the same in the past week, trading for 18 cents a share.
However, RED has traded at half the average stock price in 12 months. The same can be said for the wider market comparison, and it is performing 55% below its sector.
Source: TradingView
KOTH gold mine breaks another production record for April
RED produced 18,633 ounces of gold at the King of the Hills (KOTH) gold mine, which is in the Eastern Goldfields region of WA.
For the month of April 2023, the mine reportedly produced 18,633 ounces of gold, which is up from the 17,550 ounces reported the month before.
Of the April ore production, KOTH churned this result from 0.40 million metric tonnes ore at an average head grade of 1.54g per tonne with a record gold recovery of 94.2%.
Red said that its open pit and underground mines (as well as its processing plant) had each continued in fine form across the span of the month. Additionally, there are ROM (run of mine) stockpiles of an estimated 450,000 tonnes of ore grading 1.2 grams per tonne to 1.3 grams per tonne at the end of April 2023.
The miner expects May to be another solid month for mining. However, it also warned that it expects gold production to hit a lower rate compared to April, with upcoming planned maintenance shutdowns on both the crusher and the mill expected this month.
Red projects and guidance
In other news, the construction of the Tailings Storage Facility 5 (TSF5) was also completed in April, having received final regulatory approval, and it began discharge to TSF5 by the end of the month.
The group is looking at a maintained production guidance for 2H2023, which still sits at the targeted 90,000-105,000 ounces at an AISC of A$1,750-A$1,950 per ounce.
Back in March, RED posted its quarterly gold production of 40,867 ounces (December’s quarter churned 36,260 ounces) at an all-in sustaining cost (AISC) of A$2,055 an ounce.
Quarterly gold sales had reached 40,907 ounces, which is more than December quarter’s 35,100 ounces.
The group said its open pit ‘catch-up’ plan is complete, and mining positions are in-line with the FY23 budget position as of the beginning of February.
Source: RED
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