PERTH (miningweekly.com) – Wet weather conditions have seen Austral Resources report a 13% decline in copper production during the three months to June, with copper production reaching 2 315 t.
The company told shareholders that production was impacted by a reduction in total ore stacked for processing as a result of severe wet weather conditions in the previous quarter, which had caused numerous road closures, as well as planned mill shutdown which was completed in March.
“I am delighted to announce that despite the production challenges, we remain within 25 t of our half-yearly production target of 5 000 t,” said Austral MD and CEO Dan Jauncey.
All-in sustaining costs for the quarter also increased from A$4.17/lb in the March quarter to A$4.48/lb in the three months to June
Copper sales for the quarter also declined to 2 249 t, from the 2 818 t sold in the March quarter, with copper prices declining from A$12 601/t to A$12 112/t. During the quarter, Austral generated revenue of A$27.3-million and achieved earnings before interest, tax, depreciation and amortisation of A$4.1-million.
“Our copper sales of 2 250 t in the June quarter generated a net revenue of A$27.3-million, with operating cash flow amounting to A$9.1-million. Additionally, we achieved a net mine cash flow of A$2.4-million, considering one-off stripping costs of A$6.6-million. These financial results reflect our operational efficiency,” added Jauncey.
“Our accelerated pre-strip of East Pit Stage 2 was a crucial step towards securing the optionality of accessing three ore bodies. This strategic move will de-risk our mining operations before the next wet season and for the remainder of the mining campaign. Moreover, it will significantly reduce mining costs as the strip ratio for each pit will decrease significantly.”