First Au Limited is streamlining its portfolio to concentrate exclusively on Western Australian gold projects, exiting offshore interests and enacting key board changes to align with investor expectations.
- Strategic pivot to Western Australian gold assets, led by Gimlet Gold Project
- Exit from Liberia-based Nimba Gold Project joint venture with NSR royalty retained
- Board restructuring including Executive Chairman role transition and new director appointment
- Simplification aims to enhance market relevance and investor confidence
- Future updates planned on exploration programs and additional WA opportunities
Strategic Refocus on Western Australia
First Au Limited (ASX, FAU) has announced a decisive strategic refocus, narrowing its operational footprint to Western Australian gold projects. This move follows a comprehensive review of its portfolio and market positioning, with the company emphasizing the value of jurisdictional certainty, investor familiarity, and established infrastructure in Western Australia. Central to this renewed focus is the Gimlet Gold Project near Kalgoorlie, a wholly owned asset with a mineral resource of approximately 120,000 ounces at a grade of 3.15 grams per tonne.
The Board believes that concentrating on Australian assets will better align First Au with ASX investor preferences, who tend to assign a premium to local gold projects due to clearer regulatory frameworks and proven development pathways. This simplification is intended to rebuild market confidence and provide a clearer investment narrative.
Exiting Offshore Exposure
In line with this strategy, First Au has agreed to exit its joint venture interest in the Nimba Gold Project in Liberia. This decision removes ongoing funding obligations and offshore operational risks, allowing management to focus resources and attention on domestic projects. Notably, First Au will retain a 2% Net Smelter Return (NSR) royalty on the Nimba licence by exchanging its 35% shareholding in 79 Resources Ltd. This arrangement preserves some upside potential without further capital commitment, with the royalty subject to repurchase by Hamak at a defined price.
Board Changes to Support New Direction
The strategic shift is accompanied by significant board changes. Non-Executive Director Nicholas Karl Smithson has resigned, reflecting the exit from offshore activities. Meanwhile, Chairman Daniel Raihani transitions to an Executive Chairman role, signaling a more hands-on leadership approach. Executive Director Lei Shi moves to a Non-Executive Director position, and the company welcomes Piers Lewis as a new Non-Executive Director. Lewis brings over 25 years of corporate advisory experience across multiple regions and currently holds several ASX board and company secretary roles, adding depth to First Au’s governance.
Looking Ahead
First Au plans to provide further updates on exploration programs and budgets at Gimlet, as well as evaluations of additional Western Australian opportunities. The completion of the Nimba exit and royalty arrangements will also be communicated in due course. These steps underscore the company’s commitment to a streamlined, Australia-centric strategy designed to unlock shareholder value and clarify its market positioning.
Bottom Line?
First Au’s strategic reset marks a pivotal moment, but execution on WA projects and market response will define its next chapter.
Questions in the middle?
- How will First Au fund and prioritise exploration at Gimlet amid the portfolio simplification?
- What potential Western Australian opportunities is the company evaluating beyond Gimlet?
- How might the retained NSR royalty on Nimba impact future cash flows or valuation?