Matsa to pay maiden 0.2¢ dividend on Red Dog
Northern goldfields junior Matsa Resources will pay out its maiden dividend after banking $5.5 million on its short-lived Red Dog gold mine south of Laverton.
It is also closing in on a decision on whether to reopen the Red October gold mine, Matsa executive chairman Paul Poli says, with the company spending $1.3 million on underground mining equipment for the mine it bought from Saracen Mineral Holdings in a $2 million deal in 2017.
Matsa produced 12,704 ounces of gold through a toll milling agreement at AngloGold Ashanti’s Sunrise Dam plant at all-in sustaining costs of $1288/oz over a threemonth period.
It has led Matsa to issue a 0.2¢ a share dividend, the company’s first, validating the junior miner’s decision to turn to the Laverton gold district after an unfruitful run as a nickel explorer on the Fraser Range east of Norseman between 2012 and 2016.
Mr Poli said the company aimed to bring a string of small open pits online around the Red October mine in the future to generate income, rather than trying to raise equity from shareholders.
“I think ultimately our goal is to have a long-term gold mine at Red October,” he said.
“I think that’s a lot nearer to fulfilment than what is anticipated.
“We are using these small pit scenarios to keep cashed up and make some money and not go into dilution for shareholders.”
Matsa shares closed up 0.5¢, or 2.9 per cent, at 17.5¢ each yesterday.