The Emerald (ASX:EMR) share price is soaring 6% after a gold mine update

The gold explorer’s stock is having a great day on the ASX. Here’s why

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The Emerald Resources NL (ASX: EMR) share price is soaring today on the back of an update on the company’s Okvau Gold Mine.

Emerald has announced the mine’s commissioning is complete and it has ramped up to full production.

At the time of writing, the Emerald share price is 86 cents, 5.52% higher than its previous close.

Let’s take a closer look at today’s news from the explorer and developer of gold projects.

Okvau ramps up to full production

The Emerald share price is taking off today on news of the company’s Cambodian gold project, the Okvau Gold Mine.

The company announced the Okvau Gold Mine has ramped up to full production and could see the company producing more than 100,000 ounces of gold each year.

The mine has also met and potentially exceeded its definitive feasibility study’s predicted output.

More than 19,000 ounces of gold has been produced by the mine so far, with gold production on track to reach 23,000 ounces by the end of the quarter.

Since the company’s maiden gold pour in June, it has sold 6,958 ounces of gold at an average price of US$1,795 an ounce.

Additionally, the mine’s process plant is running 10% above its nameplate throughput rate.

Commentary from management

Emerald’s managing director Morgan Hart said of the news driving the company’s share price:

We look forward to positive cash flows from the Okvau Gold Mine providing the opportunity to grow the company through exploration and acquisition. Notably with environmental approvals recently granted at the Memot Project, our exploration is scheduled to commence on a maiden drilling campaign in the near term.

Emerald share price snapshot

Today’s gains haven’t been enough to get the Emerald share price back into the green this year.

Right now, the company’s shares are trading for 4.4% less than they were at the start of 2021. However, they are swapping hands for 30.3% more than they were this time last year.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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