Tin-in-concentrate production at the Renison mine fell marginally in the quarter to end-June to 1,512 tonnes, but productivity improved during the course of the quarter and the mine continued to generate cash flow which is being ploughed back into mine development and exploration.
In its latest quarterly report Metals X, which owns 50% of the operation, noted that mining production had been limited by underground waste disposal issues, since resolved, which had in turn constrained concentrator throughput. Productivity under the new mining contractor, Barminco, was expected to continue improving in the next quarter.
Operating margins have been squeezed by falling tin prices and increasing power costs, but cash flow (EBITDA) attributable to MLX’s 50% stake amounted to Au$2.61 million. Cash operating costs rose to Au$15,530/tonne from $12,720 in the previous quarter, while total costs, including realisation costs and capital charges, were $20,543/tonne.
Over the last 12 months MLX has spent Au$7.04 million on mine development, $2.97 million on exploration and $3.42 million on plant and equipment. As previously reported, the exploration programme has resulted in a 16% increase in ore reserves to 53,100 tonnes of contained tin.
