A number of Australian mine operators have released activity reports for the first quarter of 2023–24.
Mineral Resources
Mineral Resources (MinRes) released its Quarterly Exploration And Mining Activities Report, which included the company having a 14 per cent mining service production volume increase, and accumulating 66t of mining product.
Quarterly iron ore production increased by eight per cent during the quarter to 4.8wmt, with the average quarterly iron ore price reaching US$99/dmt.
Other highlights from the report include MinRes receiving all major approvals for its Onslow Iron Project – the first ore-on-ship delivery is expected in June 2024. Drill and blast operations commenced at the Ken’s Bore mine site, clearing and earthworks started on the private haul road and construction at the port is well progressed.
Post-quarter, MinRes successfully completed a five-year US$1.1 Billion Senior Unsecured Notes Offering at 9.250 per cent. MinRes also announced that it closed on the restructuring of its MARBL joint venture with Albemarle Corporation (Albemarle) effective 18 October 2023.
Bellevue
Bellevue Gold (Bellevue) has reported a highly successful quarter, with its 1Mtpa processing facility being delivered on time, and on budget.
The first gold pour from the new processing facility was completed on 25 October 2023, with commissioning underway over the December 2023 quarter with ramp up towards 1Mtpa run rate. A significant stockpile is on hand comprising approximately 115,000t of underground ore ready for processing as part of the commissioning phase, and an additional 85,000t of open pit material is also available for processing that is currently not in the early-stage processing plan.
Other highlights from the Bellevue Gold September 2023 Quarterly Report include construction progressing during the quarter in the thermal power plant, undertaken by power provider Zenith Energy Operations. Clearing for the solar farm has been started, with all topsoil removed and earthworks to be completed early November 2023 ready for delivery of panels. Further technical work has been completed for four wind turbines to complete the 88MW hybrid power station, with this work being a key component to Bellevue Gold’s aspirational net zero target for 2026.
Bellevue reported that surface mining at the open Vanguard pit has concluded, allowing the commencement of tailings disposal, however, surface mining is continuing with the establishment of the Tribune boxcut.
All four Bellevue independent mining areas are now all in ore development stages.
The company reported a total liquidity of $82.4 million at the end of the September 2023 Quarter, including ~$8.5 million in unsold gold from toll treating to date. A $25 million working cap facility was also obtained from Macquarie Bank Limited by Bellevue, with the facility being undrawn and providing a contingent source of funds to provide balance sheet flexibility.
Bellevue Managing Director, Darren Stralow, said, “To build this project on time and budget has been a major achievement, particularly given the skills shortage and inflationary environment we have endured.
“With production and cash flow now underway, our focus moves to ramping up mining and processing towards nameplate rates, driving increases in cash flow.
“We are in a very strong position with liquidity of more than $80m at the end of the quarter.”
Core
Core generated an improvement in its lithia recoveries, which was evident through the quarter, averaging 50 per cent (from 49 per cent in the previous quarter).
The company also increased its Spodumene concentrate production, generating a total of 20,692t compared to 14,685 during Q4FY23, as well as having an eight per cent increase in total material moved in Q1FY24 compared to Q4FY23 and record ore extraction in September.
Other highlights from the Core September Activities Report include spodumene concentrate shipments of 23,424t at an average grade of 5.2 per cent (compared to 5,423t at 5.6 per cent Q4FY23), including:
- Final concentrate shipment of 13,100t into the Yahua prepayment agreement
- First 10,000t spodumene concentrate delivered into the Ganfeng offtake agreement
BP33 early works have progressed well including excavation of the 288m box-cut, delivery of the steel tunnel liners, excavation of water storage, sediment dams and site roads.
The Grants mine performance improved over the course of the quarter, with a series of performance improvement initiatives adopted by the mining team, resulting in an eight per cent increase in total material moved in Q1 FY24 compared to Q4 FY23. It is planned that ore stocks will build prior to the wet season and be drawn down throughout the wet season months.
Blasting and excavator reliability issues experienced early in the quarter were also addressed leading to record ore extraction in September, and a second wall movement monitoring radar was installed to improve prediction of wall movement and ensure that preventative measures are established proactively in the future.
Stocks on the run of mine (ROM) pad at the end of the quarter were 164,796t, compared to 7,598t at 30 June 2023.
Core raised $107.9 million in net costs throughout the quarter, following the completion of its institutional placement and share purchase plan, and had a cash balance of $202.1 million on 30 September 2023.
Core CEO, Gareth Manderson, said, “This was a quarter of good progress in our three areas of focus; safely ramping up and optimising our concentrate production operations at Grants, progressing the BP33 Project and delivering our exploration plan. Mining and processing performance improvement is tangible and I am very proud of the way the team are working thoroughly and at pace to achieve our improvement objectives.”
