JOHANNESBURG (miningweekly.com) – The strong operational and financial performance of West Australian gold miner Millennium Minerals’ Nullagine project has enabled it to fast-track its debt repayment strategy, with a $1.5-million repayment earlier this month, thus reducing the outstanding balance on its senior debt facility to $2.5-million.
The company said in a statement that in light of the continuing strong cash flow generation of the project, it could now repay the full balance outstanding on this facility by the end of February.
This was one month ahead of the previously revised accelerated schedule of March 31.
Millennium CEO Glenn Dovaston noted that this left the company debt-free from next month, placing it in a strong position to take full advantage of the current gold market environment.
“With the operation continuing to perform extremely well, our finalised 2016 budgets indicate we can expect another year of strong production at very competitive operating costs.
“We are also continuing to make significant early inroads with our drilling programmes, which as previously announced, are designed to grow the project’s gold inventory and mine life,” he said.
Meanwhile, Millennium said it expected Nullagine to produce 80 000 oz to 85 000 oz of gold at an all-in sustaining cost (AISC) of A$1 180/oz to A$1 220/oz during the current financial year.
Millennium achieved the upper end of its revised guidance for the financial year to December 31, with gold production of 91 462 oz at an AISC of A$1 175/oz.