High-flying S&P/ASX 300 Index (ASX: XKO) gold stock Dateline Resources Ltd (ASX: DTR) is taking a tumble today.
Shares in the gold and rare earths explorer closed on Friday trading for 24 cents. In early morning trade on Monday, shares are changing hands for 22 cents apiece, down 8.3%.
For some context, the ASX 300 is down 0.8% at this same time.
Taking a step back, one year ago you could have bought Dateline Resources shares for just 3.2 cents each. That would see you sitting on a gain of 587.5% today. Or enough to turn a $10,000 investment into $68,750.
In one year!
Here's what's catching investor interest today.
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ASX 300 gold stock sinks on BFS
Dateline Resources shares are slipping after the company announced the results of the Bankable Feasibility Study (BFS) for its Colosseum Gold and Rare Earth Element (REE) Project, located in the US state of California.
The ASX 300 gold stock is under pressure despite the company reporting that the BFS demonstrates a "robust gold development", which it expects will generate significant margins.
Among the highlights of the BFS was Colosseum's US$1.08 billion undiscounted pre-tax free cashflow estimate. And that increases to US$1.36 billion using the spot gold price.
The project has a net present value (NPV) of US$785 million (pre-tax), which increases to US$999 million using the spot gold price.
Start-up costs for the mine are expected to come in at US$249 million.
And Colosseum is forecast to produce an average of 75,000 ounces of gold per year over the first six years of production. Across the project's 10.4 year mine life, management expects it to produce 573,000 ounces of gold, with production peaking at 102,000 ounces in year six.
The All-in Sustaining Cost (AISC) to produce that gold runn on the higher end of the scale, expected to be US$1,825 per ounce.
What did Dateline Resources management say?
Commenting on the BFS outcome that's yet to lift the ASX 300 gold stock today, Dateline Resources managing director Stephen Baghdadi said, "Since acquiring Colosseum in 2021, we have recognised the significant potential of the project."
Baghdadi added:
The near vertical nature of mineralisation associated with the breccia pipes demonstrates excellent continuity that continues with depth. Since the original Scoping Study was completed in October 2024, we have continued to see strength in the gold sector, with the project forecast to generate operating margins of greater than $2,500 per ounce.
Looking to what's ahead for the ASX 300 gold stock, Baghdadi concluded:
With the BFS complete and the Front-End Engineering Studies (FEED) well underway, our engagement with project financiers is advancing as we look to secure the funding required to commence production as soon as possible.
