Aditya Birla Minerals Limited ABN 37 103 515 037
Level 3
256 Adelaide Terrace Septimus Roe Square Perth
Western Australia 6000 Australia
PO Box 3074
East Perth
Western Australia 6892 Australia
T: +61 8 9366 8800
F: +61 8 9366 8805
www.adityabirlaminerals.com.au
Aditya Birla Minerals Limited
ASX RELEASE
FOR THE QUARTER ENDED 30 JUNE 2016
For Further Information
Aditya Birla Minerals Limited
Peter Cook Director Warren Hallam Director
Telephone +61 8 9366 8800 or
+61 8 9220 5700
Facsimile +61 8 9366 8805
Email [email protected]
June 2016 Quarterly Performance
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As reported on 26 April 2016, the Board of Aditya Birla Minerals Limited (ABY or the Company) recommended to its shareholders to accept the Metals X Limited (MLX) revised increased offer of 1 MLX share for every 4.5 ABY shares in addition to a cash payment of $0.08 per ABY share (Varied Offer).
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Subsequent to the end of the quarter, the major shareholder of the Company, Hindalco Industries Ltd (Hindalco), received approval from the Reserve Bank of India (RBI) for acceptance of the sale of its 51% shareholding to MLX under the above takeover offer and accordingly accepted the Varied Offer. As on the date of this Quarterly Report, MLX has announced that it now holds 90.06% of the voting interests in the Company and on 22 July 2016 announced that it will now move to compulsorily acquire the remaining interests in ABY's.
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As of 25 July 2016 all previous directors of ABY resigned as a result of MLX reaching the threshold for compulsory acquisition. Three directors were appointed from MLX being Peter Cook, Warren Hallam and Fiona Van Maanen.
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Quarterly copper production from Nifty was 7,571 tonnes at a cash operating cost of A$2.96 per pound taking the rolling 12 month output to 33,838 tonnes of copper at a cash operating cost of A$2.51per pound.
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Quarterly EBITDA for the quarter was negative A$5.8 million and the rolling 12-month EBITDA was positive A$6.86 million.
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Net Cash and working capital at the end of the quarter was A$92.4 million which includes A$58.8 million in cash and $7.6 million in cash-backed security bonds).
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The identified mineral resource and mining reserve updates as at 31 March 2016 were completed and announced in ASX releases dated 16 May 2016 and 23 May 2016 respectively and are tabulated as follows:
|
PROJECT
|
CUT-OFF
|
TONNES (MT)
|
% CU
|
|
Nifty Sulphides
|
1.2%
|
Measured
|
17.34
|
2.16%
|
|
1.2%
|
Indicated
|
3.29
|
1.80%
|
|
1.2%
|
Inferred
|
2.83
|
1.52%
|
|
Sub-total
|
23.46
|
2.03%
|
|
Nifty Oxides
|
0.4%
|
Measured
|
1.43
|
0.91%
|
|
0.4%
|
Indicated
|
1.22
|
0.86%
|
|
0.4%
|
Inferred
|
1.68
|
0.83%
|
|
Sub-total
|
4.33
|
0.86%
|
|
Nifty Heap Leach
|
0.5%
|
Measured
|
-
|
-%
|
|
0.5%
|
Indicated
|
2.85
|
0.75%
|
|
0.5%
|
Inferred
|
0.46
|
0.66%
|
|
Sub-total
|
3.31
|
0.74%
|
|
NIFTY GROUP
|
SUB-TOTAL
|
31.1
|
1.73%
|
|
Maroochydore Ox*
|
0.5%
|
Measured
|
-
|
-%
|
|
PROJECT
|
CUT-OFF
|
TONNES (MT)
|
% CU
|
|
0.5%
|
Indicated
|
40.8
|
0.92%
|
|
0.5%
|
Inferred
|
2.4
|
0.81%
|
|
Sub-total
|
43.2
|
0.91%
|
|
Maroochydore Sulph*
|
1.1%
|
Measured
|
-
|
-%
|
|
1.1%
|
Indicated
|
-
|
-%
|
|
1.1%
|
Inferred
|
5.43
|
1.66%
|
|
Sub-total
|
5.43
|
1.66%
|
|
MAROOCHYDORE GROUP
|
SUB-TOTAL
|
48.63
|
1.00%
|
|
TOTAL
|
79.73
|
1.28%
|
* In addition Maroochydore has high co-product credits of Co averaging 380ppm.
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The Nifty operation was impaired by a number of one-off operational issues during the quarter, including planned major maintenance and unplanned breakdowns and repairs needed on the underground conveyor system and Ball Mill gearbox as well as lower than expected underground tonnage and grade outputs. The overall outputs compared with previous periods is summarised below:
|
NIFTY MINE- KEY OUTPUTS
|
JUN' 16 QUARTER
|
PREVIOUS QUARTER
|
ROLLING 12 MONTHS
|
|
Ore Mined
|
tonnes
|
408,157
|
446,512
|
1,661,356
|
|
Grade
|
%
|
1.98%
|
2.12%
|
2.14%
|
|
Cu Contained
|
tonnes
|
8,069
|
9,462
|
35,477
|
|
Ore Processed
|
tonnes
|
405,956
|
437,579
|
1,651,812
|
|
Cu Contained
|
tonnes
|
8,006
|
9,307
|
35,267
|
|
Concentrate Produced
|
dmt
|
33,265
|
38,723
|
145,324
|
|
Concentrate Grade
|
%
|
22.76%
|
23.14%
|
23.28%
|
|
Total Copper Produced
|
tonnes
|
7,571
|
8,959
|
33,838
|
|
Total Copper Sold
|
tonnes
|
4,302
|
12,255
|
33,126
|
|
Cost Per Tonne Mined & Milled
|
$/t
|
96.6
|
77.8
|
86.3
|
|
C1 Cash Oper. Cost Per Pound
|
A$/Lb
|
2.96
|
2.29
|
2.51
|
|
All-in Sustaining Cost
|
A$/Lb
|
3.79
|
2.63
|
2.89
|
|
All-in Cost
|
A$/Lb
|
3.78
|
2.65
|
2.87
|
|
Capex
|
A$ Mn
|
3.43
|
3.15
|
9.60
|
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The 8.6% decrease in ore mined is attributable to planned maintenance jobs carried out in the underground crusher, conveyor and an unexpected breakdown in the underground conveyor.
-
The 7.2% reduction in ore processed during the quarter mainly attributable to lower ore mined and a breakdown in the Ball Mill gearbox.
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Lower ore grade averaging at 1.98% during the quarter as compared to 2.12% in the March quarter. Planned higher grade stopes could not be mined during the quarter due to geotechnical reasons.
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The 15.5% reduction in copper production during the quarter was due to lower ore processed and lower copper grade.
-
The 29% increase in C1 cash operating costs reflected the lower copper production and higher maintenance costs incurred due to the planned maintenance, major components replacement in mobile fleet and the unexpected breakdowns in the underground conveyor and Ball Mill gearbox as above.
The Nifty Oxide operations continue to be under care and maintenance.
A Prosecution Notice was received from the State Solicitor's Office charging gross negligence with regard to a fatal accident that occurred at Nifty in May 2015. The Company has initiated a Pre-trial plea bargain with the Prosecutors to downgrade the charges. The next Court hearing date is 8 August 2016.
During the quarter no delineation or infill drilling activity was undertaken at Nifty underground mine.
No field exploration activity was undertaken on mining and exploration tenements.
Copper prices continued to remain subdue during the quarter. The copper price is currently range bound between US$4,600 and US$5,000/t. The recent appreciation of Australian Dollar vis-à-vis US Dollar to a level of 0.74 - 0.76 has adversely impacted the copper price realisation in Australian Dollar terms - currently in the range of A$6,200- 6,500/t.
Company Profile
Aditya Birla Minerals Limited (ASX: ABY) is a copper mining company in Australia with operations in Western Australia. ABY is currently operating the Nifty Copper Mine located in the Great Sandy Desert, Western Australia. Copper concentrates produced from its Nifty Copper Mine are shipped to Hindalco Industries Limited's (Hindalco) copper smelter in India.