QUARTERLY REPORT
FOR THE PERIOD ENDING 31 DECEMBER 2014
SIGNIFICANT OUTPUTS
DURING THE QUARTER
GOLD DIVISION
• Production just above guidance:
• Mined 233,890 tonnes @ 3.84 g/t Au.
• Processed 474,876 tonnes @ 2.17 g/t Au.
• Gold metal produced was 30,592 oz.
• Total cash cost of sales was $838/oz.
• Quarterly EBITDA (unaudited) of $17.7 million.
• CMGP Feasibility & Development Plan - NPV $636 million, IRR 364%, Simple payback 1.5 years.
TIN DIVISION
• Quarter on Quarter Record Tin output:
• Tonnes mined 161,245t @1.70% Sn.
• Tonnes processed 166,065 @ 1.68% Sn.
• Tin metal production (in concentrates) of 1,960t.
• Total cash cost of sales of $16,414/t Sn.
• Metals X share of Quarterly EBITDA (unaudited) of $6.67 million.
NICKEL DIVISION
• 100 tonne bulk sample successfully processed in pilot plant using alternative
Limonite processing technology in Korea.
EXPLORATION
• Excellent regional exploration results:
• Bonanza Copper-Gold results from Rover 1.
• New Pb-Zn discovery at Curiosity.
• Virgin high-grade Cu-Zn gossans discovered at Warumpi.
• Excellent high-grade gold results from CMGP drilling.
CORPORATE
• Capital consolidation (1 for 4) completed and 2.715cps fully-franked dividend paid.
• Cash and working capital as at 31 December 2014 was $118.7 million.
ENQUIRIES
Peter Cook
Executive Director & CEO
[email protected]
Warren Hallam
Executive Director
[email protected]
GOLD DIVISION
OVERVIEW
Overall performance from the gold division for the December Quarter 2014 was in-line with expectations. Consolidated gold production was slightly above guidance at 30,592 ounces at total cash cost of sales of $838 per ounce. Cash flow for the gold division was strong with EBITDA (unaudited) for the quarter estimated at $17.7 million.
Significant progress was made on the integration of the newly acquired Meekatharra operations into an expanded Central Murchison Gold Project ("CMGP") with the revised CMGP Feasibility & Development Plan showing at NPV(8) of $636 million (pre-tax), an IRR of 364% and a simple payback of 1.5 years at current spot gold prices. Pre-production works and strategic planning advanced with a large amount of exploration and pre-mining grade controls works were completed. Metals X continues to work toward a mid-2015 re-start to operations.
At Rover 1, drilling focussed on extension of deeper ore zones to aid feasibility study outcomes which returned very high grade copper-gold results with the feeling that another bonanza zone of copper-gold mineralisation lies immediately beneath the area of previous mining studies.
Production guidance for the ensuing quarter for the gold division is 37,500 ounces at a total cash cost of sales of $1,050 per ounce.
HIGGINSVILLE GOLD OPERATIONS (HGO) (MLX 100%)
Productivity and operational performance was in-line with guidance as the operations replaced production from the previously depleted Chalice underground mine with open pit ore production from the Lake Cowan group of open pits.
The gold production from the December quarter was lower than previous quarters due to a coincidence of lower grade stopes dominating the production profile in the Trident underground mine. No surprises were received and quarterly production was as predicted. Gold production will return to higher levels in the ensuing quarters.
The process plant continues to operate on a (9-on : 5-off) campaign basis with open pit mining productivity above what is capable of being processed at this time. Consequently, ore stocks are increasing and additional ore will be trucked to the South Kalgoorlie Operations for processing in the ensuing quarter.
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December 14 Quarter
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Previous Quarter
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Rolling 12 Months
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Mine Production
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Source
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Trident -Ore Tonnes (t)
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Trident U/G
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128,867
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207,385
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455,670
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Trident Grade (g/t Au)
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5.36
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5.96
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6.56
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Cowan Pits - Tonnes (t)
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Cowan Pits
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105,023
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842
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105,865
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Cowan Grade (g/t Au)
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1.98
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1.65
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1.98
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Total Mine Production
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Tonnes
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233,890
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208,227
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927,374
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Grade
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3.84
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5.95
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5.20
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Plant Production
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Ore Processed (t)
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Tonnes
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217,142
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214,688
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891,038
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Head Grade
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g/t gold
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3.87
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5.67
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5.26
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Recovery (%)
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%
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94.2
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96.6
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95.5
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Gold Produced
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Ounces
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25,460
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37,834
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144,213
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*Includes Chalice Mine Production
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