VANCOUVER (miningweekly.com) – Just seven months since acquiring the El Mochito zinc/lead/silver mine, in west-central Honduras, TSX-listed Ascendant Resources has achieved positive adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) for the month of July.

Analysts use the metric that looks at a company’s "top line" earnings by standardising cash flows and discounting anomalies to provide a useful measure of comparison when evaluating multiple companies.

During July, El Mochito milled 57 458 t of ore, averaging 1 853 t/d, an increase from 1 693 t/d in June. July's performance reflects the benefit of introducing new mining equipment to operations, the company said.

During the last week of July, the mine recorded average daily production of 1 992 t/d and this has continued to improve further in August, the company added.

For the second quarter ended June 30, net concentrate sales revenue was $9.9-million, an increase of 25.5% over the first quarter on higher zinc-equivalent production. The quarterly adjusted Ebitda loss totalled $6.2-million.

Ascendant reported a net loss of $8.55-million, or $0.15 a share.

The average realised metals prices were $1.25/lb of zinc, $0.98/lb of lead and $16.97/oz of silver. The company sold 4 588 t of zinc concentrate and no lead concentrate.

Ascendant realised a reduction in cost per tonne milled of 8.5% to $93.19 in the period, compared with $101.82/t in the prior quarter.

Unit costs remained slightly elevated due to several one-off items related to strengthening the underground infrastructure at El Mochito for the long term, including an unplanned mine pump system upgrade, electrical maintenance costs and severance costs, the company advised.

Costs to maintain the ageing underground fleet remained high, pending the full commissioning of the new equipment towards the end of the quarter. Costs in the second half are expected to be materially lower owing to higher output rates and higher head grades resulting in a lower fixed cost burden per unit of production, as well as the benefits of reduced maintenance costs associated with a newer fleet. 

Ascendant said it continues to evaluate replacing other equipment to improve equipment availability and reduce overall operating costs.

Management is focused on ramping up ore throughput to at least 2 200 t/d for the fourth quarter, based on improved fleet availability and other optimisation activities being undertaken.

While throughput is of critical concern, increasing the head grade to the mill and the value per tonne mined is a significant focus for management.

Meanwhile, the company has identified “several” areas of interest that are being incorporated into the mine plan immediately, through conventional mining methods, which should enable the company to increase head grades milled through year-end.