A prospector who amassed a fortune in Western Australia’s mining industry after claiming some of Kalgoorlie’s richest gold mines has no plans to sell large stockpiles of the metal being stored at the Perth Mint. Anton Billis, a reclusive figure in the resources sector, continues to hold his gold reserves despite soaring prices.
At 81, Billis serves as the managing director of ASX-listed gold miners Tribune Resources and Rand Mining, which together own a 49% stake in the lucrative East Kundana joint venture. His personal stake in these companies was recently valued at approximately $141 million.
Record Gold Prices and Stockpiling Strategy
Since 2005, Tribune and Rand have collectively produced over 1.33 million ounces of gold from Kalgoorlie mines such as Raleigh, Rubicon-Hornet, and Pegasus. A significant portion of this has been stockpiled at the mint, reflecting a strategic decision to hold rather than sell.
Stock market filings reveal that as of June 30, Tribune had gold valued at $177.01 million, while Rand’s holdings were worth $70.08 million.
Billis has stated that he intends to maintain these holdings, selling only to meet financial commitments and provide working capital. “We use that to pay cash calls and to pay for dividends, the rest of it stays in the Perth Mint,” he explained. “Everyone thought I was a bit eccentric. I think that gold will continue to go up higher.”
Gold’s Meteoric Price Rise
The appreciation in the value of Tribune and Rand’s stockpiles mirrors this year’s unprecedented surge in gold prices. The metal surpassed $5,000 an ounce for the first time in April, later reaching $6,000 an ounce in October.
Australia produced 76 tonnes of gold in the September quarter, valued at approximately $15.5 billion at current prices, according to Melbourne-based gold consultancy Surbiton Associates.
Western Australian miners, who produce the majority of the country’s gold, typically sell to the government-owned Perth Mint at the daily spot price. The 126-year-old mint refines gold into 99.9% bullion and sells products like bars and coins globally. Its annual report notes that the Perth Mint refined 225.4 tonnes of gold last financial year, with its depository holding metals valued at $10.4 billion as of June 30.
Industry-Wide Trend of Retaining Gold
While Billis’s companies are notable for their stockpiling strategy, other ASX-listed miners like Black Cat Syndicate and Beacon Minerals have also begun retaining portions of their production in gold bullion storage.
Black Cat Syndicate, which restarted the Paulsens gold mine in WA’s Pilbara last year, has since acquired the Lakewood mill near Kalgoorlie for $85 million to process gold from its Kal East project. As of September 30, Black Cat had 5,104 ounces in storage, valued at about $29.6 million. The company estimates its gold has appreciated by $3 million to $4 million since adopting this strategy.
“It is hard to justify producing a safe-haven asset in gold and then converting that into an asset losing its purchasing power in cash,” managing director Gareth Solly stated at Black Cat’s annual shareholder meeting.
Black Cat chairman Paul Chapman cited a World Gold Council report predicting that 95% of central banks will increase their gold reserves over the next year. “Gold is no longer seen as an artefact, but a currency,” he remarked.
Strategic Value of Gold Holdings
Coolgardie gold miner Beacon Minerals held 4,615 ounces of gold at the Perth Mint as of September 30, with an additional 1,393 ounces in transit, collectively valued at about $36.27 million. Beacon’s managing director, Graham McGarry, highlighted the strategic value of retained gold holdings, especially as the gold price reached a record $6,448 an ounce on October 14.
“Our decision to hold gold in excess of that required to meet operational and capital commitments has delivered a tangible uplift to shareholder value,” McGarry noted in Beacon’s quarterly report.
As the gold market continues to show strength, these miners’ strategies of retaining gold reserves at the Perth Mint underscore a broader industry trend of leveraging the metal’s enduring value. With central banks poised to increase their reserves, the outlook for gold remains robust, suggesting that stockpiling strategies may continue to pay dividends in the years ahead.
