In its aim to deliver long-term value, there are three equally important aspects to the Wits Gold strategy, namely:
- Exploration
- Project development
- Acquisition
Exploration
Continuing exploration activities will allow the Company to add value and build on its project pipeline while maintaining its considerable Wits Basin database and expertise.
Shallow projects will be identified as potential additions to the Company’s portfolio. Longer-term, deeper assets will be marketed appropriately.
Project development
The Company’s current focus is on fast-tracking the development of the most advanced shallow projects, DBM and Bloemhoek in the southern Free State goldfield.
Asset consolidation, particularly in the region around DBM and Bloemhoek is also an important part of the development strategy – most notably other shallow, short term projects where capital expenditure can be lowered by project contiguity.
Acquisition
Wits Gold aims to use strategic acquisitions to accelerate its transition to gold producer and to take advantage of the opportunities for consolidation and synergies offered by the favourable locations of its projects.
Acquisition criteria include:
- Operating assets in production
- Established management team
- Contiguity with existing projects
- Low capex requirements
- Positive cash flow
- High cost producers with turnaround potential.