Metals X reported an improved operating margin of some A$8,000/tonne of tin-in-concentrate at its Renison Tin 50:50 joint venture with Yunnan Tin Group in the June quarter. Cash operating costs at the Tasmanian operation were reported at A$12,518/tonne, and with tin prices rising the unit generated a positive cash flow of A$12.3 million in the quarter.
Total production of tin-in-concentrate in April-June was 1,673 tonnes, bringing the annual total in the company’s financial year to June to 6,266 tonnes. Until now the Renison mill has been fed with ore from the Renison and Mt Bischoff mines, but operations at the latter mine were due to cease in July. Stockpiled ore will be fed into the mill in the current quarter, while production from Renison is stepped up.
The company noted that “the impact of the transition to mill feed sourced solely from Renison underground will be a further reduction in overall operating costs as full production will be sourced from the one mine. Further the substitution of lower grade ore from Mt Bischoff with the higher grade underground ores will result in increased tin production and therefore increased earnings. The full effect of this is expected to be observed from October 2010.”
