PERTH (miningweekly.com) - Base metals miner New Century Resources has reported record sales for the quarter ended June, as zinc production increased and C1 costs declined.
The ASX-listed miner on Thursday announced that zinc metal production for the June quarter reached 31 737 t, up 4% on the previous quarter, while C1 costs in the same period declined by 1%, to $0.90/lb.
The company also met its revised guidance for the full 2021 financial year, producing 129 153 t of zinc metal, compared with the targeted 282 529 t, with C1 costs in the full year reaching $0.90/lb.
Net sales receipts for the June quarter were up 46% on the previous quarter, to a record A$97.3-million, while adjusted earnings before interest, taxes, depreciation and amortization reached a record A$27.7-million.
“Century operations in the June quarter have delivered their best quarterly financial performance to date, with record operational cashflow alongside improving operational performance across all metrics,” MD Patrick Walta said.
“With Jameson Cell commissioning nearing completion, the company has an excellent platform to grow its earnings base through increased production output.
“New Century also continues to progress the development of its Silver King and East Fault Block deposits, with recent Silver King drilling delivering stunning assay results up to 66% lead equivalent including some 1 000 g/t silver, underpinning the strong potential for near-term development of these assets.”
Walta told shareholders that macroeconomic conditions for zinc continue to provide positive tailwinds for Century operations, with the June quarterly average zinc price of $1.32/lb up 6% on the March quarter and over 60% since the 2020 low.
“New Century’s recently announced hedging programme has locked in these buoyant conditions for around 25% of payable production for the next three years,” he said.
For the 2022 financial year, New Century is targeting production of between 130 000 t to 145 000 t of zinc metal, with C1 costs targeted at between $0.78/lb and $0.88/lb.