SUMATRA COPPER & GOLD PLC
Registered No. 5777015
QUARTERLY REPORT: SEPTEMBER 2016‌
Sumatra Copper & Gold plc
("the Company") ASX Code: SUM
Capital structure
At 27.10.2016
709,735,176 listed CDIs
1,217,006 unquoted shares
1,500,000 options
311,932,436 warrants
7,500,000 performance rights
7,000,000 convertible notes‌
Market capitalisation
At 27.10.2016
CDI price: A$0.023
Market capitalisation: A$16.3m‌
Cash & bullion, debt‌
At 30.9.2016
Cash and bullion: US$2.1m Loan facilities: US$49.8m Convertible notes: US$7m
Board of Directors Stephen Robinson Chairman
David Fowler‌‌
Managing Director Adi Sjoekri Executive Director Jocelyn Waller
Non-executive Director
Gavin Caudle
Non-executive Director
Registered Office
39 Parkside, Cambridge United Kingdom CB1 1PN‌
Level 1, 5 Ord Street West Perth WA 6005
T: +61 8 6298 6200
E: [email protected]
Highlights
The Company is pleased to present its September 2016 quarter activities report for the Tembang Gold-Silver Project, located in southern Sumatra, Indonesia ("Tembang").
Production
-
Gold production of 6,145 oz and silver production of 79,354 oz (total of 7,306 AuEq* oz).
-
All-in sustaining cost (AISC) of US$1,291/oz.
-
Gold recovery of 77.9% and silver recovery of 60.6%.
-
Finished product stocks of 1,501 oz gold and 28,337 oz silver at quarter end.
Sales
-
Gold sales of 7,233 oz and silver sales of 79,573 oz were higher than production for the quarter with a corresponding decrease in finished metal inventory.
-
Gold and silver revenue of US$9.623 million and US$1.545 million respectively for total revenue of US$11.168 million.
-
Average realised sales price for gold of US$1,285/oz and silver of US$17.52/oz.
Safety
-
No Lost Time Injuries (LTIs) during the quarter.
-
Total of 4,365,000 manhours completed LTI-free since initial construction began at Tembang in July 2013.
Financial
-
Cash & cash equivalents at 30 September 2016 of US$0.349 million and bullion of US$1.78 million.
-
Subsequent to end of the quarter, a VAT Finance Facility entered into and an initial drawdown made of US$3 million.
Exploration
-
Near mine exploration activities focussed on advancing the priority targets defined as part of the development of the Tembang Exploration Target Pipeline.
-
440m of trenching across Belinau SW, Asmar North, Anang East, Merin and Asmar NW targets and 10km of gridding and collection of 186 soil samples within Jenih Target.
Outlook
-
Guidance for 2016 unchanged at 30,000 - 33,000 oz AuEq increasing to 45,000 - 55,000 oz AuEq in 2017.
Note: all data above is for the quarter ended 30.09.2016
* AuEq = Gold Equivalent Ounces, calculated as oz Au + oz Ag / 68
Summary
Table 1: Tembang Operations - Key Production Statistics
|
Tembang Operations
|
Unit
|
March Quarter 2016
|
June Quarter 2016
|
September Quarter 2016
|
Year-to-date FY 2016
|
|
Underground mining
|
|
Ore mined
|
tonnes
|
13,578
|
22,800
|
17,896
|
54,274
|
|
Mined grade
|
g/t Au
|
4.62
|
4.60
|
4.61
|
4.61
|
|
g/t Ag
|
93.92
|
69.61
|
91.55
|
83.06
|
|
Contained metal
|
oz Au
|
2,017
|
3,376
|
2,651
|
8,044
|
|
oz Ag
|
41,000
|
51,139
|
52,792
|
144,930
|
|
Open pit mining
|
|
Ore mined
|
tonnes
|
96,177
|
84,429
|
88,429
|
269,035
|
|
Mined grade
|
g/t Au
|
1.31
|
1.28
|
1.59
|
1.39
|
|
g/t Ag
|
27.01
|
21.10
|
24.41
|
24.51
|
|
Contained metal
|
oz Au
|
4,051
|
3,478
|
4,519
|
12,048
|
|
oz Ag
|
85,519
|
57,408
|
69,563
|
212,490
|
|
Mill production
|
|
Ore milled
|
tonnes
|
103,323
|
106,777
|
106,771
|
316,871
|
|
Mill grade
|
g/t Au
|
1.81
|
2.15
|
2.29
|
2.09
|
|
g/t Ag
|
50.14
|
37.62
|
38.03
|
41.89
|
|
Contained metal
|
oz Au
|
6,024
|
7,383
|
7,889
|
21,296
|
|
oz Ag
|
166,489
|
129,439
|
130,845
|
426,773
|
|
Recovery
|
% Au
|
89.75
|
86.50
|
77.89
|
84.23
|
|
% Ag
|
73.02
|
70.34
|
60.65
|
68.41
|
|
Recovered gold
|
oz Au
|
5,406
|
6,387
|
6,145
|
17,938
|
|
Recovered silver
|
oz Ag
|
121,569
|
91,012
|
79,354
|
291,935
|
|
Gold & silver sales
|
|
Gold sold
|
oz Au
|
5,465
|
4,951
|
7,233
|
17,649
|
|
Silver sold
|
oz Ag
|
119,922
|
82,628
|
79,573
|
282,123
|
|
Inventory at end of quarter
|
|
Ore stocks
|
oz Au
|
74
|
96
|
63
|
63
|
|
oz Ag
|
2,735
|
1,514
|
1,116
|
1,116
|
|
Metal in circuit
|
oz Au
|
869
|
717
|
685
|
685
|
|
oz Ag
|
14,424
|
10,246
|
9,833
|
9,833
|
|
Finished product
|
oz Au
|
1,150
|
2,586
|
1,501
|
1,501
|
|
oz Ag
|
18,458
|
29,943
|
28,283
|
28,283
|
Quarterly Production Data
Figures 1 - 4: Key Quarterly Production Data
oz AuEq in ore mined
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
-
Fig 1. Underground mining
Mar'16 Qtr Jun'16 Qtr Sep'16 Qtr
9.0
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0
g/t AuEq in ore mined
oz AuEq in ore mined
6,000
5,000
4,000
3,000
2,000
1,000
-
Fig 2. Open-pit mining
Mar'16 Qtr Jun'16 Qtr Sep'16 Qtr
g/t AuEq in ore mined
2.7
2.2
1.7
1.2
0.7
0.2
-0.3
Contained AuEq Mined grade AuEq
Contained AuEq Mined grade AuEq
oz AuEq in ore milled
12,000
10,000
Fig 3. Ore milled
3.0
2.5
g/t AuEq in ore milled
oz Au & AuEq produced
8,000
7,000
6,000
Fig 4. Metal production
160,000
oz Ag produced
140,000
120,000
2,000
-
Mar'16 Qtr Jun'16 Qtr Sep'16 Qtr
0.5
0.0
|
8,000
|
2.0
|
5,000
|
100,000
|
|
6,000
|
1.5
|
4,000
|
80,000
|
|
4,000
|
1.0
|
3,000
|
60,000
|
2,000
1,000
-
Mar'16 Qtr Jun'16 Qtr Sep'16 Qtr
40,000
20,000
-
Contained AuEq Milled grade AuEq
AuEq prodn Au prodn Ag prodn
Note: AuEq conversion is based upon the relative gold/silver price for the respective quarter: 80, 75, 68 for April, June, Sept quarters respectively
All-in Sustaining Cost (AISC)
Table 2: Tembang Operations - All-in Sustaining Cost (AISC)
|
Tembang
|
Unit
|
Sep Qtr 2016
|
Sep YTD 2016
|
Unit
|
Sep Qtr 2016
|
Sep YTD 2016
|
|
Mining costs
|
US$m
|
3.964
|
11.503
|
US$/oz
|
645
|
641
|
|
Processing costs
|
US$m
|
2.505
|
7.950
|
US$/oz
|
408
|
443
|
|
General & admin costs
|
US$m
|
1.131
|
3.753
|
US$/oz
|
184
|
209
|
|
Silver credits
|
US$m
|
(1.334)
|
(4.343)
|
US$/oz
|
(217)
|
(242)
|
|
Inventory movements
|
US$m
|
.061
|
(.035)
|
US$/oz
|
10
|
(2)
|
|
Cash costs
|
US$m
|
6.327
|
18.828
|
US$/oz
|
1,030
|
1,050
|
|
Royalties
|
US$m
|
0.377
|
0.987
|
US$/oz
|
61
|
55
|
|
Capital works (sustaining)
|
US$m
|
1.229
|
3.280
|
US$/oz
|
200
|
183
|
|
All-in Sustaining Cost
|
US$m
|
7.933
|
23.095
|
US$/oz
|
1,291
|
1,292
|
|
Production
|
oz Au
|
6,145
|
17,938
|
Tembang Operations
Underground Mining
Development & Stoping
The Belinau underground mine transitioned successfully to an interim bench cut and fill (BCF) operation during the quarter. There was a 63% increase in development productivity from the previous average of 2.1 cuts per day (588m) to 3.5 cuts per day (969m) quarter on quarter. This was a result both of improved cycle times, due to narrower drive widths, and consistent replication of activities improving efficiency.
The increased development productivity has accelerated the rate of advance of the decline, with 198m developed during the quarter compared to 156m during the prior quarter. The accelerated development of the decline is crucial to enable low cost bottom-up stoping to commence during the first quarter of 2017.
See Figure 6
Figure 5: BCF on Level 5 West at Belinau
Ore production for the quarter was 3,347 oz AuEq versus 4,156 oz AuEq for the prior quarter. The lower production was a result of a hiatus between the cessation of long hole stoping and commencement of BCF. However, the planned production rate resumed by the end of the quarter with approximately half of the ounces produced for the quarter coming from the month of September (1,610 oz AuEq). BCF production from Belinau is expected to remain steady at approximately the same rate as September until the recommencement of stoping in the first quarter of 2017.
The bottom-up stoping plan is well advanced with a combination of mechanised and hand-held methods to be utilised to reduce dilution and cost while maximising the use of existing infrastructure and equipment. Figure 7 shows the planned stope panels and rise configurations.
A total of 44 meters of vertical development was also completed for return air and escape ways between Levels 6 and 5. Construction of a lined sump in the former Belinau open pit commenced during the quarter, with the sump capacity designed to hold and pump a 1-in-100 year rainfall event. In addition, the permanent underground mine pumping system was commissioned.