Bass Metals Ltd (ASX: BSM)
ASX RELEASE
28
August 2009
Bass poised for strong growth after sharp increase in
profit
MEDIA RELEASE
- Polymetallic
miner emerges from the GFC to post $7.4m annual underlying operating
profit from its Que River mine in Tasmania, up from $2.2m the previous
year.
- Profit
after income tax soars to $19.1m, up from $1.8m previously, after booking
a $16.7m gain on the acquisition of the Hellyer operating infrastructure
and mining lease.
- Strong
result comes despite Bass investing $4.2m in exploration and the
feasibility study for the Fossey deposit and paying $4m in cash towards
the Hellyer acquisition.
- Feasibility
study on Fossey deposit at Hellyer almost complete, with a decision to
mine imminent.
- Working
capital position of $7.4m.
- Bass?
robust financial position and strong growth outlook vindicates the
strategy to generate cashflow at Que River to fund Hellyer acquisition and
development.
Bass Metals Ltd (ASX: BSM) has defied the
global financial crisis to post an outstanding annual underlying operating
profit of $7.4 million up from $2.2 million previously, and set itself up to
continue on its current growth trajectory towards becoming a diversified
mid-tier mining company.
Sales of zinc, copper, lead, silver and gold from Que
River generated sales revenue of $23.8m, up from $9.4m a year earlier,
highlighting the benefit of Bass? ore sales agreement with MMG Australia?s
Rosebery operations.
Bass Managing Director Mike Rosenstreich said the
results were consistent with the strategy outlined in Bass? 2005 IPO prospectus
to use cashflow from Que River to fund its plan for substantial growth.
?This has enabled the Company to be self-funding,
rather than accumulating debt or appealing to shareholders for fresh equity,
and perform strongly amid the fallout from the GFC,? Mr Rosenstreich said.
This self-funding strategy enabled Bass to pay $4m in cash
during the year towards the acquisition of the Hellyer project in Tasmania. It
also invested $4.2m in exploration including the feasibility study for the
Fossey deposit at Hellyer.
Since June 30, Bass has agreed a new ore sales
agreement with MMG Australia Limited that will see it supply up to 100,000t of
ore. This will ensure the Company remains in production and continues to
generate cashflow while it prepares to bring Hellyer into production.
Hellyer is expected to have a project life of at least
four to five years, though recent exploration results suggest there is plenty
of potential to extend this significantly.
The Hellyer mill is expected to treat about 400,000
tonnes of ore a year from the Fossey, Hellyer and Que river resources. The
feasibility study on Fossey is nearing completion and financing discussions and
appointment of key personnel is well advanced.
The Hellyer mill has an annual capacity of 1.5 million
tonnes, providing substantial scope for increased production on the back of
exploration success and possible future acquisitions.
- ENDS -
Released by:
Paul Armstrong
Read Corporate
Telephone: (08) 9388-1474
|
On behalf of:
Mr Mike Rosenstreich
Managing Director
Bass Metals Ltd
Telephone: (+61-8) 9322 8044
Website: www.bassmetals.com
|
The information within this report that relates to exploration results
is based on information compiled by Mr. Mike Rosenstreich who is a full time
employee of the Company and is a Member of The Australasian Institute of Mining
and Metallurgy. He has sufficient experience relevant to the styles of
mineralisation and types of deposits under consideration and to the activities
currently being undertaken to qualify as a Competent Person as defined in the
2004 edition of the Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves and consents to the inclusion of this
information in the form and context in which it appears in this report.
This Report aims to provide a high level summary of various technical
aspects of the Company?s projects. For more details on the underlying
technical parameters the reader is referred to the ASX Reports on the Bass
Metals? website, www.bassmetals.com.au ..
READ
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