Metals X, which manages and has a 50% stake in the Renison mine, Australia’s sole significant tin producer, reported a massive increase in revenues and profits in the financial year to end-June. The gains were due to the acquisition of two gold mines during the year, boosting cash flow (EBITDA) by 679% to Au$71.7 million and net profits by 332% to Au$37.4 million. The mines produced 138,000 oz of gold over eight months.
In a review of operations the company noted the excellent availabilities and utilisation of the Renison concentrator over the year and that mining of higher grade ores should boost production in the current year. Average tin grade in the 2014 financial year fell to 1.45%. Total tin-in-concentrate production from the mine in the year to June was 6,216 tonnes. Metals X said it is continuing to work with its Chinese JV partners to establish the best path to bring the Rentails tailings treatment project into development. The company also said that it has disposed of its Collingwood tin project, which operated between 2006 and 2008. ITRI understands that the buyer is Global Mineral Resources, a private Australian company.
Commenting on the financial results Metals X CEO Peter Cook said: “We are in a great position with strong and commodity diverse cash flows, a fat bank balance, no debt and an exciting portfolio of growth assets”. The company has no plans to return funds to shareholders, but will continue to pursue development and acquisition opportunities.
