Daily Roundup

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VEEM Revises 1HFY25 Guidance, Implements Cost Savings

VEEM Ltd has revised its financial expectations for the first half of FY2025, with the company now forecasting lower revenue, EBITDA, and net profit. The updates come as VEEM faces some operational challenges, including additional costs on certain industrial products jobs and a quality issue related to gyrostabiliser parts.

Despite the revised 1HFY25 outlook, VEEM remains confident that the second half and beyond will return to the company's usual margins and profitability levels. The business has a strong outlook across all areas, and new defence opportunities could provide revenue as early as 2HFY25.

To improve margins, VEEM has implemented a number of cost reduction measures, including staff reductions in certain areas. The company has also been awarded a $1 million government grant and extended its $5 million bank loan to 2027 on the same terms.

Woodside Streamlines Portfolio, Unlocks Long-Term Value

In a strategic move, Woodside and Chevron have agreed to an asset swap that will simplify Woodside's portfolio and consolidate its focus on operated LNG assets. The transaction will see Woodside acquire Chevron's interests in the North West Shelf Project, the NWS Oil Project, and the Angel Carbon Capture and Storage Project, while transferring its interests in the Wheatstone and Julimar-Brunello Projects to Chevron.

The deal is expected to strengthen Woodside's near-term cash flow, supporting shareholder distributions and ongoing investments. Subject to completion, the transaction will result in a net increase of 9.6 MMboe to Woodside's Proved plus Probable Reserves.

Lycopodium Awarded Kone Gold Project Contracts

Lycopodium Limited has been awarded the Engineering and Procurement (EP) and Construction Management (CM) contracts for the development of Montage Gold's flagship Kone Gold Project in Cote d'Ivoire. The project, valued at US$835 million, will be one of the largest greenfield gold processing plants in West Africa.

Lycopodium's scope, worth A$56.7 million, includes the engineering, design, procurement, construction management, and commissioning of the 11.0 Mtpa carbon-in-leach process plant and associated infrastructure. The Kone Gold Project is expected to produce 300,000 ounces of gold annually in its first eight years of operation, with production anticipated to commence in early 2027.

Ora Banda Hits Milestone at Sand King Underground

Ora Banda Mining Ltd has achieved a significant milestone at its Sand King Underground mine, intersecting multiple ore lodes in the first crosscut on the 315 Level. The mine development remains on track, with the company expecting to deliver first stoping ore in the March-25 Quarter and commence steady state production of ~60kozpa in the June-25 Quarter.

The initial underground diamond drilling program has confirmed multiple high-grade lodes and additional bulk tonnage opportunities at Sand King. As the ounce production from Sand King increases, Ora Banda is set up for a strong second half of the financial year, with a production outlook of 140,000oz to 160,000oz in FY26.

De Grey Explores Hemi Underground Potential

De Grey Mining Ltd has completed a Hemi Underground Mining Conceptual Study, which presents an early assessment of the potential for underground mining at the Hemi Gold Project. The study has identified significant underground resource potential, with conceptual underground mine plan stopes of 46.5Mt @ 2.2g/t Au for approximately 3.2Moz of contained gold beneath the Hemi open pit designs.

The study also assessed decline access options, considering the potential for contemporaneous open pit and underground mining at Hemi. Further drilling and studies will be conducted to progress the assessment of underground mining potential at the project.