De Grey Mining Limited (ASX:DEG) continues to advance its Hemi Gold Project, with significant milestones achieved in Q3 2024. The company reported that the Australian Government’s Northern Australia Infrastructure Facility (NAIF) has agreed to provide a $150 million loan to support the project, which is expected to form part of a broader $1 billion senior debt facility. The project’s financing is on track, with documentation for an additional $130 million cost overrun facility to be finalised by the end of the year.
The Definitive Feasibility Study (DFS) for Hemi highlights robust economics, with an estimated post-tax Net Present Value (NPV) of $2.9 billion, based on a gold price of $2,700 per ounce. With the current spot price of gold around $3,950 per ounce, the project's potential value could be significantly higher. Orders for long-lead items, valued at $169 million, are in line with cost estimates, further solidifying operational readiness.
De Grey's Managing Director Glenn Jardine commented, "The Hemi project is advancing smoothly with all financing and environmental approvals on track. We are particularly pleased with the engagement of federal and state regulators, ensuring a clear path towards full-scale development."
However, challenges remain on the environmental front, as federal and state approvals are pending. Federal approval is expected by Q1 2025, and the company is cautiously optimistic about meeting its construction timeline. De Grey continues to focus on exploration in the Greater Hemi Corridor, including promising results from the Aquila and Crow deposits.
