ASX All Ords gold stock Aurum Resources Ltd (ASX: AUE) has delivered some outsized gains this past year.
Aurum Resources shares closed on Monday trading for 64 cents apiece. That sees shares in the African-focused gold miner up 67% in 12 months, smashing the 14.5% one-year gains delivered by the All Ordinaries Index (ASX: XAO).
Part of those gains have been spurred by the fast-rising gold price. On Monday, gold was fetching US$4,796 per ounce, up 40% since this time last year.
But the ASX All Ords gold stock has hardly been sitting idle over this time.
And following a significant resource upgrade at one of its core gold mines earlier this month, the team at Canaccord Genuity believe Aurum Resources shares are well-placed to deliver more outsized gains.
Here's why.
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ASX All Ords gold stock growing its resources
On 10 April, Aurum Resources reported a 34% increase in the mineral resource estimate (MRE) at its Napie Gold Project, located in Cote d'Ivoire.
This brought the ASX All Ords gold stock's total resource base to 4.2 million ounces across its two Cote d'Ivoire gold projects, with 3.03 million ounces at its Boundiali project and 1.16 million ounces at Napie.
Encouragingly, the miner noted that only 13% of the 30-kilometre Napie Shear has been systematically drilled to date. And Aurum is well-funded to continue drilling, with a cash balance of $61 million as at 31 March.
Commenting on the upgraded MRE, Canaccord said:
In our initiation of coverage, our expectation was that AUE could deliver an unrisked addition of 279koz at Napie in the near term. To come within 4% at this juncture is very pleasing and bodes well for further updates
Looking to potential catalysts ahead, Canaccord noted:
Ongoing drilling programs, including 30,000m at Napie and 100,000m at Boundiali, are expected to drive further resource growth, with additional updates planned through 2026. A PFS [pre-feasibility study] for Boundiali is expected later this month.
As for what investors might expect from that PFS, Canaccord said, "We expect the 40.8Mt at 1.0g/t Au for 1.37Moz Indicated resource to underpin 10 years of production at a 6Mtpa run rate. At this scale, Boundiali could sustain 175kozpa."
On the cost front, the broker estimates that Aurum Resources' all-in sustaining cost (AISC) could be around US$1,500 per ounce at the current gold price.
Connecting the dots, Canaccord has a speculative buy rating on the ASX All Ords gold stock with a price target of $1.55 a share.
That's more than 142% above Monday's closing price.
