Metals X reported a 52% year-on-year increase in December quarter production to 1,800 tonnes of tin-in-concentrate at its 50%-owned Renison mine in Tasmania. The audited results show marginally higher production than announced by one of the mine’s Chinese shareholders earlier this month. Annual production in 2012 amounted to 5,848 tonnes of contained tin, up by 17% on 2011. Cash operating costs fell to A$10,090/tonne in the current quarter, with total cost of sales including depreciation and amortisation at $16,180/tonne, compared to an average received price of A$20,960/tonne. The company noted that March production will be affected by a power outage in January, a scheduled concentrator shutdown and a switch to a new mining contractor. These will result in a loss of about two weeks’ production.
In a statement announcing its results the company pointed out its on-going strength and short-term constraints:
“The Renison mine is in a strong position going forward with the full extents of the mine available for production and a growing Mineral Resource and Ore Reserve base. Over the past year a substantial investment in future capital mine development has been completed to enable sustainable higher production. Currently the mine has 590,000 tonnes of fully developed ore and 2,100,000 tonnes of capitally developed ore stocks.
During the quarter, and in-line with nearing end of the existing mine contract, a commercial tender process was undertaken to select the mining contractor for future works. Subsequent to the end of the quarter, and after detailed and competitive commercial negotiations, Barminco was selected as the successful contractor for the next three years underground mining work. Barminco will replace Macmahon’s and although a change management process has been put in place, an effective loss in productivity will occur as a result of the changeover. In addition, a scheduled major shutdown (5 days) to replace the primary screen within the processing plant and unscheduled power outages experienced in January may also impact the next quarters result. Both of these one off events are such that the Renison Project will endure approximately two weeks (approximately 15%) production loss in the thirteen weeks of the next quarter.”
