Doray's focus firmly on Andy Well
PERTH (miningweekly.com) – Australian gold miner Doray Minerals on Thursday said that while it would not rule out new acquisitions, the company’s priority would be on the near-term production of its flagship and new Andy Well gold mine, in Western Australia.
Doray MD Allan Kelly told delegates at Paydirt’s gold conference, in Perth, that the company’s restructured debt repayment facility with the Commonwealth Bank had delivered Doray a higher available cash balance than the facility it replaced.
The restructure freed up about A$12-million in cash flow from the Andy Well mine.
“There may be an expectation in the market that that will see us rush out and acquire additional gold projects in a market environment where there are some good values from stressed sales,” Kelly said.
“However, that will not be the case. There is far greater value to the company from organic growth at Andy Well where every dollar spent on drilling and adding to the mine life, delivers a far higher net revenue return in real terms than would be available if we expended our cash strength on new, lesser potential gold projects.”
He added that the Andy Well operation had substantial near-term upside, which would deliver the best return on investment.
“Doray will not be rushing out to jump from a one-gold-mine-project company to suddenly a four-gold-project company. Our growth strategy is to build Andy Well, and a new six-month drill campaign has commenced there, while building our exploration in the new Northern Murchison field and securing strategic land-holdings in the Murchison and Central Gawler gold province.”
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