While Southern Gold is a company of 2 geographic parts, Australia and South Korea, we are a company with one unified vision: to become an internationally recognised gold explorer and producer in both jurisdictions, with a highly professional technical team, a reputation for excellence and discovery, and done in partnership with our industry respected joint venture alliances.
We are driving this vision with a business model of monetising small gold deposits as we search for the big ones. We are conservative with the issuance of our scrip, putting as many dollars as possible into drilling holes so as to move the company forward on behalf of the owners, our shareholders.
The aim is to generate enough cash flow from our assets to both pay a return to the shareholders as well as conduct industry leading gold exploration in our quest to make a world-class gold discovery.
When we look at opportunities in the exploration space what does Southern Gold look for?
- We focus on gold. Gold is kind to small capitalisation companies due to its relative low capital intensity to develop. It is even kinder to larger companies if costs are managed and margins maintained.
- We focus on high grade gold opportunities. Grade is still king, and a high grade deposit is a lot more forgiving than a low grade one. It helps manage risk and provides a buffer for what is a fundamentally cyclical industry.
- We like being near infrastructure. If we find something small, there is a greater chance of still turning it into money. If we find something large, it will be all the more valuable for being close to that which will make its development happen at more modest capital cost.
- We are not afraid to joint venture to those that know what they are doing. Southern Gold is a small company with a highly professional team. We do not have the large-scale execution capability in mining, while other larger or more specialist companies have teams at hand and the expertise to execute. We manage risk by getting them to do so.
- We are principally guided by geology. Our business is the business of rocks, preferably rocks with precious metals. To find the world class deposit we seek we are better off starting with the most fundamental characteristic: geological provinces with the right tectonic architecture to allow gold deposits to form in the first place.
On this last point our current activities are centred on Kalgoorlie in Western Australia and Daejeon in South Korea.
Kalgoorlie needs little introduction in Australia but for gold investors in the international audience, Kalgoorlie is a world-class gold province with multiple multi-million ounce orebodies and a gold mining culture that is well established. Despite a century old discovery and production history, it is so prolific as still to be regarded as “elephant country” – with a lot of elephants. It ticks the infrastructure box and our projects there are biased towards the higher grade end of the spectrum compared to a typical gold deposit mined today.
Daejeon is roughly in the geographic centre of South Korea and in the centre of our portfolio of projects there. South Korea was well recognised as an historic gold producer. This profile has eased in the past several decades and so represents a “time capsule” gold industry that is poorly developed but was once substantial. Having said that, South Korea is a modern, industrialised economy, a representative democracy and has substantial infrastructure advantages, in many respects superior to Australia. But the reason Southern Gold is in Korea is the geology: we are wedged between China and Japan in geological time, with subduction zone ‘ring of fire’ geology. In other words it hosts some of the best plumbing systems in the world when looking for the emplacement of precious metal deposits. Our technical team believes this South Korea is ripe for modern-style gold exploration and discovery.
So you want to invest in the gold space but you are wary of the junior sector? Why invest in Southern Gold?
If you are looking for;
- a junior company with its own organic funding and no debt;
- a business model of developing additional cash flow sources from our gold discoveries;
- a significant exploration ground position in very safe jurisdictions;
- a footprint of exploration ground that has a track record (or the fundamental geological architecture) for the emplacement of precious metal deposits; and
- A focus on getting and developing the right people with a view to building a culture of technical excellence;