A profitable microcap ASX gold miner flying under the radar

Gold is riding an extraordinary bull market, shattering records with each passing day. Just a year ago, prices pushed through US$2,000 an ounce for the first time and now, they’ve soared past US$3,000.

This surge is fueling a wave M&A activity as large miners seek to bolster their gold reserves. While major miners across the board, including majors like Evolution Mining and Northern Star report record earnings.

Yet, while large-cap titans and rising stars like Spartan Resources and Catalyst Metals steal the headlines, smaller players like Auric Mining (ASX: AWJ) remain under the radar. In this gold mini series, I take a deeper dive into some of the more intriguing gold names in the microcap space.

What makes Auric Mining interesting

With a modest $35 million market cap, this profitable gold producer is making waves at its Jeffrey’s Find Project in Western Australia. Auric is interesting for reasons including:

• Gold producing assets: Partnered with BML Ventures, Auric’s Jeffreys Find Gold Mine yielded 9,741 ounces in 2023 and over 17,900 ounces in the 2024/25 phase.

• A profitable miner: This output has delivered $4.76 million in cash for 2023 and $8.1 million so far in 2024/25, with another $3-4 million expected via its 50:50 profit split.

• More to come: As Jeffreys Find nears completion, Auric is set to launch a starter pit at its Munda Gold Deposit targeting 6,100 ounces in 2025, plus the newly acquired Lindsay’s Project, including the Parrot Feathers Gold Mine, for added cash flow.

This $35 million market cap company has started to produce earnings in a relatively short time span. To unpack this rapid rise and glimpse into Auric’s next steps, we sat down with Managing Director Mark English.

The Jeffreys Find Story

Jeffreys Find has been Auric’s cornerstone since day one, acquired from Mincor Resources NL as a non-core asset amid their focus on the Cassini nickel mine.

Its appeal? A pre-native title mining lease, untouched by prior operations, offering a rare “clean slate” for swift production. Located 42km east of Norseman, this modest 47,000-ounce deposit — graded at under 2 grams per tonne — was once dubbed “the mine no-one wanted.” Yet, its shallow, banded iron formation and wide surface profile made it perfect for a simple shovel-and-truck setup, delivering early cash flow. With 60,000 tonnes left to process by July, Auric anticipates a final $3-4 million surplus, wrapping up a tidy success.

Cash Flow Triumph

Jeffreys Find will yield 30,000 ounces over its life, raking in $15-17 million from a $1.5 million investment — a windfall amplified by gold’s record highs. In 2023, Auric averaged A$3,007 per ounce for nearly 10,000 ounces; in 2024/25, it’s hit A$4,024 per ounce for almost 18,000 ounces—a 33% jump. Costs have climbed from A$1,993 per ounce in 2023 as mining deepened, but with $8.5 million in cash as of March 1, 2024, and more on the way, Auric is primed for its next venture: the Munda Project.

Munda: The Next Chapter

Jeffreys Find was just the warm-up. The Munda Gold Deposit, boasting 145,000 ounces, promises 3-4 years of mining, fully operated by Auric to keep all profits in-house. A starter pit kicks off soon, targeting 6,100 ounces in 2025 to generate cash and refine geological insights for a larger push in 2026. At A$3,500 per ounce, the pit could yield a $5.3 million surplus (A$2,635 AISC); at today’s A$4,600, that could swell to $9-12 million. By early 2026, a main pit will roll out over 13 quarters, with ore processed at a nearby mill—Auric’s measured bet on a robust revenue stream.

M&A opportunities

The Goldfields region is buzzing with M&A, from Westgold’s Karora takeover to Wyloo’s Mincor buyout and Astral’s Maximus deal. Auric is well-placed to pounce, eyeing ready-to-mine gold deposits. Its recent moves include:

• The Lindsay’s Project (pending due diligence), a Jeffreys Find-like opportunity with the Parrot Feathers mine, primed for 2025 production

• Loded Dog, a longer-term exploration play with historic promise

• Auric is also negotiating a $4.4 million deal for the Burbanks Gold facility — a site with permits and infrastructure ripe for a new 500,000tpa mill

Gold outlook

Watching gold’s immense run upwards has been a surreal experience. For Aussie dollar gold, 2024 saw the price climb 38.3%, to mark its 11th consecutive up-year. The sky is the limit, and we are so fortunate to be mining at this time. I see a strong gold price and, in all likelihood, getting stronger. The chaos unfolding from Trump’s presidency can only add to gold's appeal!