In its latest quarterly release Metals X reported a bounce-back in production at the Renison mine in Tasmania, following a difficult period at the end of last year and in January-February 2011. Quarterly production of tin-in-concentrate in January-March was 29% lower than in the same period of 2010, but production in March and April has been running at a higher rate.
In a statement MLX, which owns 50% of the joint-venture with Yunnan Tin Group and other investors, described the recovery as follows: “Tin production for the quarter was 1,244 tonnes of tin contained in concentrates compared to the previous quarter of 1,217 tonnes. Production at the mine continues to improve with 40% of the production for the quarter being derived in March. Mine production in January and February was affected by localised geotechnical issues in the Lower Federal zone, which required additional access development and upgrading of existing ground support before recommencing full production. In addition a planned 99 hour process plant maintenance shutdown was undertaken in February. Production levels were restored to planned levels early in March and continued success in April is anticipated to produce approximately 550 tonnes of tin in concentrates for the month.”
Cash operating costs in the current quarter were reported at A$14,993/tonne of tin, and are forecast to fall in the current quarter. The operation generated a cash flow (EBITDA) of A$15.3 million in the period. Mine economics will now be helped by the newly started commercial production of copper concentrates, with planned production of contained copper rising from 600 tonnes in 2011 to 1,200 – 1,500 tonnes in 2012.
