PERTH (miningweekly.com) – Copper and gold miner PanAust on Wednesday increased its full-year production expectations after reporting strong results from its Phu Kham and Ban Houayxai operations during the three months to March.
The miner estimated full-year production at between 74 000 t and 76 000 t of copper-in-concentrate, up from the previous estimate of between 73 000 t and 76 000 t, while gold production was expected to average between 195 000 oz and 205 000 oz, up from the previous estimate of 175 000 oz to 183 000 oz.
Silver production was also expected to increase to between 1.4-million and 1.5-million ounces, compared with the 1.3-million to 1.4-million ounces previously forecast.
The Phu Kham operation, in Laos, produced a quarterly record of 21 146 t of copper-in-concentrate during the three months ended March, up from the 19 922 t produced in the previous quarter.
C1 costs at the operation also dropped by 24% during the quarter, while all-in sustaining costs (AISC) reduced to 22%, at $1.05/lb and $1.50/lb respectively. The C1 costs were buoyed by precious metals credits resulting from quarterly records for gold and silver production.
PanAust noted that the record copper production and the higher precious metal credits, along with lower labour and sustaining capital costs, all resulted from initiatives implemented by the company under a business efficiency review.
Meanwhile, the Ban Houayxai operation, also in Laos, produced 24 530 oz of gold during the quarter, down from the 30 307 oz produced in the previous quarter. However, C1 cash costs were 20% lower during the quarter ended March, while AISC reduced by 10%.
C1 cash costs for the Ban Houayxai mine were reported at $674/oz, while AISC were reported at $862/oz.
PanAust recently rejected an unsolicited takeover offer from shareholder Guangdong Rising Asset Management, saying that the A$1.71-a-share offer price was inadequate.