Aurous Resources reports 59% boost in operating profit, appoints new board members

Financial Highlights:

• Generated unaudited preliminary revenue of ~US$23 million as of 31 August 2024, an increase of 5% year-on-year.
• Operating profit of ~US$2.1 million for the first half of the fiscal year, an increase of 59% year on year.
• 10,888 oz of gold sold in H1 2025 with 93,513 tonnes milled and recovered grade of 3.64 g/t.
• Gold prices are currently at $2,690/oz, up 30% for the calendar year and 24% from the signing date of Aurous Resources’ business combination with Rigel, and up 42% from the assumed long-term gold price in the S-K 1300 technical report for the Blyvoor Gold Mine.

JOHANNESBURG, Dec. 17, 2024 (GLOBE NEWSWIRE) -- South African mining company Blyvoor Gold Resources (Pty) Ltd (“Aurous Resources”) has reported a 59% increase in operating profit, driven by rising gold prices and the improved operational performance of the Blyvoor gold mine.

In its most recent preliminary financial and operational results for the period ended 31 August 2024, the company generated unaudited preliminary revenue of $23-million, a 5% increase year-on-year.

Richard Floyd, CEO at Aurous, says: “Aurous is pleased to announce meaningful progress on all fronts over the past quarter. We have enjoyed the continued support of the various regulators, we have closed out on our interim audit, we have continued to track positively on our operations, we have rounded out the independent side of our board with incredible candidates and most importantly we have attracted strategic partners to further the funding drive towards capitalizing our next phase of growth. What a proud way to end a strong year.”

Aurous Resources, which operates the Blyvoor mine and is developing the Gauta tailings retreatment project on Johannesburg’s West Rand, will further bolster its board of directors with the appointment of three nominees as independent non-executive directors upon closing the transaction. They are:

• Jan Hendrik (“Hennie”) van Greuning, an experienced executive, including 15 years at the World Bank as well as acting as Registrar of Banks in South Africa before that. Hennie served on the board of the FirstRand Banking Group where he chaired the Audit, Risk and Ethics committees for over 9 years. He holds a PhD in banking regulations and is a published and accomplished executive in the financial sector;
• Christine Coignard, an executive with extensive banking, investing, management and board experience, built during a career that started at the Royal Bank of Canada, Société Générale, and Citi. Ms Coignard has extensive experience in the mining industry, having worked for Norilsk Nickel and other operating companies, investors, public authorities and advisors related to the mining industry; and
• Stephen Hayes, who was previously the President and CEO of the Corporate Council on Africa (CCA), and has extensive experience in US-Africa relations, advisory and fundraising. The CCA, during his tenure, was the most important organisation between African nations and the United States’ public and private sector. Stephen is the only American to have ever been awarded both the Ron Brown Award for International Leadership, the highest award given by the US Department of Commerce, and The President’s “E” (for Excellence) Award, the highest award given by the White House for outstanding leadership in international export development.
  

In addition, Aurous announced it has secured commercial terms for a $20-million investment by Siyanda Resources via an equity PIPE financing.

Imraan Osman, Corporate Finance Director at Siyanda Resources, says: “Siyanda is excited by the investment opportunity into Aurous Resources, providing Siyanda with an attractive entry into the gold commodity sector. We see many opportunities to work with the Aurous executive team to unlock potential opportunities and create value for shareholders.”

The agreement remains subject to regulatory and shareholder approval and the execution of full documentation. If approved, the deal would add to a previously unreported investment of $7.5-million to bring the combined committed and commercially agreed upon PIPE financing to $27.5-million.

The company expects its business combination process with Rigel Resource Acquisition, which commenced in March this year, to close in January 2025.

For more information about Aurous Resources, please see aurousresources.com