'On-time and on-budget', Emerald (ASX:EMR) share price climbs

The Emerald share price is climbing today after the company announced its Okvau Gold Project is on track for the second quarter of 2021.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Emerald Resources NL (ASX: EMR) share price is climbing today after the company announced its Okvau Gold Project is on track for commissioning in the second quarter of 2021.

The Emerald share price has risen 1.2% today to 82 cents per share.

Emerald is engaged in mineral exploration in Cambodia, with the company's major focus its Okvau Gold Project.

Emerald's Okvau Gold Project

Emerald reported today that its Okvau mine is tracking on-time and on-budget for commissioning and its first gold pour over the next few months.

The Okvau mine's first gold production is expected to make the company a more than 100,000 ounce per annum gold producer.

The company has ticked various construction boxes over the past two months. It's completed construction of the Okvau substation, with testing works at an advanced stage in preparation for energising the plant. 

It's also erected structural steel and platework in the primary crushing, transfer station and stockpile areas, and completely erected the pebble crushing machinery. 

Mining activities at Okvau so far have focused on in-pit waste movement and the first high-grade ore was mined and stockpiled last month. Excluding transport, Emerald is currently under budget for every aspect of the mine construction process.

In addition, 94% of the equipment it requires is already in Cambodia.

What Emerald management said

Emerald managing director Morgan Hart said it was "sensational news" given global circumstances:

Our dedicated team in country has advanced the development of the Okvau Gold Project significantly in recent months to be on schedule for the successful commissioning of the process plant and deliver first gold production prior to the end of the current quarter.

This represents an exceptional effort given the logistical challenges brought on by the global pandemic and done whilst maintaining first-class protocols to ensure the continued health and wellbeing of staff, contractors and stakeholders.

Emerald share price snapshot

The Emerald share price has doubled since May last year and is currently within 3 cents of its 10-year high set in January 2021. The company's share price has returned 114% over the past 12 months, and is beating the basic materials sector by 75%.

Motley Fool contributor Lucas Radbourne-Pugh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Resources Shares

A miner holding a hard hat stands in the foreground of an open cut mine
Resources Shares

A close look at BHP shares. What is the mining giant's next move?

Let's take stock of what the experts think.

Read more »

Miner looking at a tablet.
Resources Shares

Short bets on Pilbara Minerals shares are declining. Is now the time to buy?

Could the trade be unwinding?

Read more »

two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.
Resources Shares

'I hate what I have done': Mineral Resources share price down as Ellison laments actions

Managing Director Chris Ellison says he deeply regrets the impact of his 'error of judgement'.

Read more »

A man in shirt and tie uses his mobile phone under water.
Resources Shares

The Lake Resources share price is sinking yet again. Here's why

The longer-term downtrend continues.

Read more »

Miner and company person analysing results of a mining company.
Resources Shares

With a P/E ratio of 6, is the Fortescue share price a bargain?

Let’s dig into whether Fortescue shares are good value or not, in my eyes.

Read more »

A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.
Resources Shares

Down 15% this year, where's the next stop for Rio Tinto shares?

Where to next for the miner?

Read more »

Miner and company person analysing results of a mining company.
Resources Shares

Can Pilbara Minerals shares cross the $3 mark?

Lithium stocks continue to split opinion.

Read more »

Female miner smiling in front of a mining vehicle as the Pilbara Minerals share price rises
Resources Shares

'Encouraging signs' for Fortescue shares heading into 2025

This leading investment expert forecasts brighter days ahead for Fortescue shares.

Read more »