Metals X reported a further fall in production from its joint-venture Renison tin operations in Tasmania in the December quarter, with a decline in ore grades pushing up operating costs per tonne of contained tin. Tin-in-concentrate production in the three months was 1,186 tonnes, 5% lower than in the previous quarter, with operating costs rising to A$19,541/tonne (US$20,857/t at current exchange rate). The average grade of ore treated by the concentrator was 1.34% tin, down from 1.60% in the October quarter. Annual production in 2011 amounted to 5,014 tonnes, down 20% on the previous year.
In its quarterly report Metals X said that “mined grade was lower than the September quarter mainly as a result of the mining of remnant ore while additional high grade areas are being developed. Mine productivity, although in line with the previous quarter was under expectations due to equipment availability and consequential delays in bringing high grade stoping areas on line.”
Despite lower prices and higher costs, the mine still produced a positive cash flow of A$2.2 million, and the company continues to invest in new equipment and exploration and development. In the quarter capital expenditure of A$11.5 million was made on the replacement and upgrading of the mining fleet and A$6.0 million on exploration and development “as the focus continues on the accelerated refurbishment and development of the North Renison decline to access the northern lodes, that will bring forward additional high grade production capacity and flexibility”.
