Mining Breaks

West Australian miner Sandfire Resources is eyeing the upper end of its full year production and costs guidance after maintaining strong performance at its DeGrussa operations in the Sept qtr (Q1FY21), delivering a record 19,400t (Q4FY20: 19,313t) copper and 11,683oz (13,541oz) gold.
C1 cash operating costs were $US0.53/lb ($0.51/lb).
Sandfire’s FY21 forecast for the mine 900km NE of Perth remains 67,000-70,000t Cu and 36,000-40,000oz Au at $0.85-0.90/lb.

West African Resources credits its responsible management of COVID-19 challenges for maintaining continuous production at its 90%-owned Sanbrado gold operation in Burkina Faso, enabling it to lift Sept qtr (Q3) production to 45,719oz at AISC of $US1,009/oz from 33,028oz at $1,177/oz in the prior period.
Exec chairman-CEO Richard Hyde says WAF expects further reductions in AISC into Q4 as Sanbrado underground production increases.
Gold sales improved to 44,184oz at $A2,612/oz (Q2: 22,221oz at $2,636/oz).

Australian lithium miner Altura Mining has fallen into administration after a failing struggle to restructure its balance sheet in the face of weak markets and the slow ramp-up of its Pilgangoora project in WA’s Pilbara region.
The appointment of administrators Cor Cordis by first ranking secured creditor BNY Trust Co came after receiver and managers KordaMentha took control of the Perth-based company.
KordaMentha’s Richard Tucker and John Bumbak say they are urgently assessing its financial position with a view to transition the Pilgangoora project into care and maintenance.
They would immediately commence a marketing process for sale of the company and its assets as well as recapitalisation opportunities.
Altura’s creditors include leading resources and infrastructure contractor NRW, which provides mining and drill and blast services to the Pilbara mine with net exposure of about $A9M.

JV partners Horizon Minerals and privateer Richmond Vanadium Technology are reviewing costs and timing for a DFS following the completion of a positive prefeasibility study for their Richmond-Julia Creek vanadium project in NW Queensland, Australia.
The PFS outlines a $US157.4M capital development designed to produce 790,000tpa concentrate delivering 12,700tpa of 98% V2O5 flake at operating costs of $5.53/lb over an initial 20-year mine life from a maiden openpit reserve of 2.25Mt contained V2O5 (459Mt @ 0.49%).
Horizon says the JV is advancing its discussions with potential offtake partners after receiving significant interest.

Australian miner Evolution has continued its strong cash-generation performance with the posting of mine operating cash-flow of $A272.3M for the Sept qtr (Q1FY21), following up from the record $352M in the previous period.
With gold production of 170,021oz at AISC of $1,198/oz, down from Q4FY20’s 218,104oz at $1,088/oz but excluding its divested Cracow project, Evolution reported met mine cash-flow of $183.4M ($736/oz) driven by record contributions from Ernest Henry in Qld and Mungari in WA.
It improved net bank debt to $180.3M ($196.4M) following its $153.8M final dividend payment.

With its “mega-merger” with Kalgoorlie Super Pit partner Saracen Mineral Holdings scheduled for completion in early 2021, Northern Star Resources is predicting strong improvements in its production and costs performance over the next three years.
NST posted Sept qtr (Q1FY21) group gold recovery of 231,594oz, down from 267,361oz in the previous period, at AISC of $A1,544/oz (Q4FY20: $1,361/oz).
Gold sales were at the upper end of its 207,000-233,000oz guidance at 227,532oz (262,717oz) at $2,493/oz ($2,487/oz) for revenue of $530.3M ($637.7M).
Underlying free cash-flow was $132M ($218M) after investing $42M in growth capital and exploration. After repaying $200M corporate bank debt and $200M dividend payments, NST’s cash, bullion and investments at end-Sept were $470M ($770M).

Australian miner Ramelius Resources has lifted its cash and gold at an all-time high of $A221.9M, up from $185.5M previously, after posting AISC of $A1,240/oz for its Sept qtr (Q1FY21) gold production of 71,344oz, beating its guidance of $1,250-1,350/oz. The result compares with the June qtr’s 86,517oz at $1,041/oz.
Gold sales of 70,299oz at $2,323/oz (Q4FY20: 89,345oz at $2,223/oz) delivered total revenue of $163.3M ($198.6M).
Forecast Q2 production is 67,000-72,000oz at $1,200-1,300/oz, while FY21 guidance remains 260,000-280,000oz at $1,230-1,330/oz.

West Australian miner Gascoyne Resources has maintained full year production guidance at its Dalgaranga gold mine in the Murchison region at 70,000-80,000oz at AISC of $A1,200-1,300/oz after emerging from administration last week.
Dalgaranga's cost performance improved in the Sept qtr (Q1FY21), delivering its 20,314oz production at $1,409/oz - compared to 20,550oz at $1,554/oz in the previous period. Q1 grade was a record 1.06g/t and Dalgaranga achieved its ninth successive +6,000oz month in Sept.
Sales of 20,088oz at $2,667/oz (Q4FY20: 21,072oz at $2,602/oz) delivered $53.57M ($54.74M). Free cash-flow was $2.5M despite legal and administration costs, and Gascoyne emerged with over $30M cash.

North American explorer Phoenix Copper is working on an updated preliminary economic assessment of its 80%-owned Empire openpit mine in Idaho, USA after updating its NI 43-101 measured and indicated resource by 19% to 22.9Mt at 0.75% copper equivalent for contained metal content of 238,406oz gold, 7.59Moz silver, 87,543t copper and 43,871t zinc.
CEO Ryan McDermott says the increased resource equates to 172,912t copper equivalent, worth over $US122M in gross metal value.

African-focused miner Hummingbird Resources has maintained FY2020 production guidance of 110,000-125,000oz at its Yanfolila gold project in Mali as it heads into the dry season with Sept qtr (Q3) output of 24,722oz, from 24,054oz in the previous period.
Costs performance was hit by extreme rainfall, COVID-19 restrictions and a temporary border closure due to Mali’s coup, lifting Q3 AISC to $US1,283/oz (Q2: $983/oz). Hummingbird says its FY guidance of $995/oz will be impacted.
Gold sales of 23,794oz at $1,919/oz helped keep Hummingbird on track to fully repay its current bank loans in H1FY2021.

African-focused AfriTin Mining remains on track to reach nameplate production of 60tpm tin concentrate containing 36tpm tin metal by end-2020 at its flagship Uis mine in Namibia after its continued Phase 1 ramp-up delivered 39t concentrate for 27.5t tin metal in Sept.
YTD tin concentrate production is 189t.
CEO Anthony Viljoen says AfriTin is progressing studies on a Phase 2 processing facility expansion once the plant reaches steady state production, while further metallurgical testwork is planned into the production of tantalum concentrate as a by-product.

Hard on the heels of Shandong Gold saying its unconditional off-market $A1.00ps cash takeover bid for Western Australia-based explorer Cardinal Resources was its best and final offer, the Chinese company says it will lift its bid to $1.05ps and extend the offer period if a higher competing offer is made or announced.
Cardinal shareholders have been encouraged to accept the Shandong Gold offer today in order to receive the get the earlier $1.00ps cash consideration in 3-business days, plus the benefit of an at least additional 5.0cps in the event a higher competing offer being made.
The new offer compares with the current UK-based Nordgold’s offer of $1.00ps cash. The Shandong offer period has been extended to end Thursday, Dec 31, unless extended.

Australia-based Malachite Resources is eyeing a mining start within 2-years at the advanced direct shipping Kolosori nickel laterite project on Santa Isabel Island in the Solomon Islands on which the company has closed a $A2M share deal for an 80% stake.
The agreement includes a $1.25M deferred on the grant of a mining licence and confirmation of a 6Mt @ 1.6% Ni resource. 20% of KNL will be held by traditional landowners.

Global industry leader Sinosteel has signed up as a potential development and offtake partner with Technology Metals Australia for its high-grade, high-purity Yarrabubba iron-vanadium project 40km S of Meekatharra in Western Australia’s Mid West region.
The non-binding agreement with Sinosteel Australia comes after TMT identified the opportunity to produce a concentrate containing up to 66.3% Fe and 1.73% V2O5 with scope to meet the premium Platts 65 product specifications from Yarrabubba, a satellite to its world-class Gabanintha vanadium project.
The companies agreed to negotiate a life-of-mine offtake agreement and an EPC contract with Sinosteel Equipment & Engineering.
MD Ian Prentice says the breakthrough agreement potentially delivers a low entry-cost project that complements TMT’s Gabanintha project, likely to reduce its funding and implementation risk.

Australia-based West African explorer Golden Rim Resources has lifted contained gold in indicated/inferred resources for its 100%-owned Kouri Gold Project in Burkina Faso 43% to 2Moz.
The updated resource is 50Mt at 1.3g/t gold, using a 0.5g/t cut. Indicated resources increased 41% to 310,000oz at 1.4g/t gold.

Medusa Mining has suspended operations at its Co-O Gold Mine at Mindanao in the Philippines for 7-days after an unspecificied “small number” of employees tested positive for COVID-19 via the on-site rapid testing program.
All areas of the operation will be disinfected during the suspension and all employees/contractors tested before being allowed back to site.
The company says the suspension will have no impact on the June 2021 year (FY 21) production guidance of 90,000oz-95,000oz at AISC $US1,200oz-$1,250oz.

Australian-based Resource Generation has sought time to finalise an urgently needed working capital injection due to delays in funding development of its Boikarabelo opencut coal mine in South Africa’s Waterberg coalfield.
Even after adopting an austerity budget including 30% pay cuts for management and board members, ResGen says it needs up to $US1M for continuing working capital needs and the costs of meeting conditions set by its mine construction package lending syndicate.
It warns, if it can’t meet a Nov 30 deadline, it will need up to $2M more.
The company has been searching debt and equity funding measures to enable it to progress the low-cost Boikarabelo mine, which is forecast to produce 6Mtpa high-quality product coal for export and domestic markets from a 995Mt resource.

Lithium producer Orocobre expects to resume operations early this week at its 66.5%-owned Olaroz project in N Argentina from a weekend site clean-up and staff rotation after 35 employees returned positive COVID-19 test results.
It says the stoppage should not materially affect operational or financial results.
The testing was ordered after a positive test from a single employee who originally was found to be negative and asymptomatic.
The results identified 18 positives among direct contacts and 17 among mine workers with no link to the original patient, all of whom tested negative at the start of the roster.
With Argentina experiencing up to 18,000 positive cases daily, Orocobre says it’s working closely with local government, health authorities and unions to minimise any further infections.

Global copper-gold major Freeport-McMoRan has had a big Sept 2020 qtr (Q3 20) with net income jumping to $US329M from Q2 20’s $53M, operating income to $880M from $321M and cash flows to $1.23B from $491M on revenues up to $3.85B from $3.05B.
The bottom line was on copper production up to 844Mlbs from 767Mlbs, gold to 237,000oz from 191,000oz and molybdenum steady at 19Mlbs, with unit net cash costs for the copper mines down to $1.32/lb from $1.44/lb, primarily reflecting higher copper and gold sales. The costs are expected to average $1.49/lb copper for FY/CY20 and less than $1.20/lb for FY/CY21.

West Australian near-term project developer Middle Island Resources is eyeing the finalisation of financing early in 2021 as it progresses the upgraded feasibility study on recommissioning its 100%-owned Sandstone gold project in the East Murchison Mineral Field.
After electing to upgrade previous PFS work to full FS level, MDI says it has received most relevant assay data. Mineral resource estimates are progressing for the final two of Sandstone’s 10 gold deposits.
GR Engineering Services has begun a concurrent scoping study into a modest capacity upgrade of its mothballed 600,000tpa CIL processing plant.
The FS and detailed cost estimates are due in Jan 2021. By increasing confidence, the upgraded study will allow rapid project implementation if the results enable early finalisation of financing.