Australian miner Metals X’s Q3 activities report has revealed that tin-in-concentrate production from the Renison mine in Tasmania totalled 1,616 tonnes in Q3, down 11% year-on-year but up 14% from Q2 2018.
The year-on-year drop in tin output is largely due to a reduction in mined tin grades from 1.35%Sn to 1.17%Sn in Q3 2018. This has been partially offset by a much higher volume of tin ore mined; up 16% year-on-year to 216,010 tonnes in Q3, while tin recoveries have remained broadly stable. Cash costs per tonne of tin produced have risen 21% over the same period to A$13,529.
Ore mining rates have now reached the equivalent of approximately 920,000 tonnes per year required to maintain steady-state production with the mine’s new ore sorting plant. Commissioning of the mine’s new ore sorter continued during the quarter with the percentage and grade of waste rejection achieved design requirements early in Q4. However, the proportion of mined material being fed through the ore sorting plant has been lower than expected and will necessitate further optimisation. Further production improvements are expected in the final quarter of 2018 and beyond with the completion of ore sorter commissioning.
The company’s annual update of Renison’s Mineral Resources and Reserves also reveal positive results from ongoing exploration activities with a 6.25% increase in Mineral Resources as well as replenishment of depletion from current mining to maintain an 8 year underground Ore Reserve. Exploration of near-mine targets will also commence in the final quarter of 2018.
Our view: Metals X owns a 50% equity interest in Renison through its 50% stake in the Bluestone Mines Tasmania Joint Venture. The total tin output from the mine in the first three quarters of 2018 totalled 4,759 tonnes, down 10% year-on-year. We believe this largely represents the disruption caused by the preparation and integration of the new ore sorting plant with existing operations. We expect that tin output will increase in the months ahead as remaining issues are resolved.
