Announcing its first quarter 2014 results, Metals X stressed the importance of its diversified mining portfolio, notably the strong cashflow from its gold operations and the upside potential from its Wingellina nickel project. Its key tin asset – the 50% stake in the Renison tin mine in Tasmania – under-performed again in the latest quarter, as a result of a temporary decline in ore grade, but remained cash positive.
Production of tin-in-concentrates in January-March was 1,411 tonnes, down by 7% on the corresponding period of 2013 and by 8% relative to the previous quarter. Although ore throughput increased, the average head grade dropped to 1.38% tin, due mainly to “unexpected grade variability in two stopes mined during the quarter”. Cash cost of sales rose to Au$20,010/tonne, reducing Metal’s X’s 50% share in the operating cash surplus (EBITDA) to Au$4.0 million. This compares with Au$32.7 million cash generated by the gold division. The company noted that cashflow from the Higginsville and South Kalgoorlie gold mines in the last two quarters has already exceeded the purchase price paid for them.
