for the period ending 31 December 2016
QUARTER HIGHLIGHTSRecord quarterly processing throughput and gold recovery
Gold production of 13,427 oz at an AISC of A$821/oz (US$592/oz)
Quarterly revenue of $31.1 million and Site EBITDA of $13.2 million
Early debt reduction commenced with voluntary $10M repayment
Net debt reduced by 12% to $93.6M
Cash of $21.4M (after $10M voluntary debt repayment)
Cancellation of 108M Glencore Options
High grade gold and base metals returned from Hera North Pod drilling
HERA OPERATIONSQuarterly gold production of 13,427 ounces at an AISC of A$821/oz.
Ore processed was a record 97,778 tonnes and was a 15% improvement relative to the prior
quarter.
The December quarter annualised throughput was +390,000 t/y (11% above design)
Continued improvement in gold recovery to 88.6%, with a monthly high in December of 90%.
Low All-in Sustaining Cost (AISC) of $821/oz (US$592/oz) achieved through cost control, increased throughput and two concentrate shipments.
A new mining lease was granted in the quarter over the northern portion of the Hera Deposit (North Pod).
Drilling to test the size and quality of the North Pod continued during the quarter. Drill results indicate potential for the North Pod to be the highest grade zone of mineralisation at Hera. Best results released to ASX during the quarter included:
7 metres at 88.1 g/t Au and 4.3% Pb+Zn (HRU
6 metres at 31.4 g/t Au and 8.9% Pb+Zn (HRU
370)
386)
CORPORATE
Site EBITDA (revenue less site operating costs) was $13.2 million. Quarterly revenue of $31.1 million included $21.5 million from gold and silver sales and $9.6 million from base metal sales.
Voluntary $10 million debt repayment during the quarter reduced outstanding debt by 8% to
$115 million. The debt repayment enabled the cancellation of 108 million Glencore Options.
Quarterly cash increased by $2.55 million to $21.40 million, after the $10 million debt repayment.
Net Debt reduced by 12% to $93.6 million (prior quarter balance of $106.2 million)
Gold hedge position at quarter end was 5,450 ounces at a price of A$1753/ounce.
On the 28 November, Cobb Johnstone was appointed as Chairman of the Company. December, Tim Churcher (CFO) was appointed as Company Se retary.
On 22
HERA MINE NSW (100%)
HERA OPERATIONS SUMMARY lOperations performed strongly in the quarter driven by increased gold recovery and higher ore
throughput.
Continued focus on the gravity section of the processing plant increased quarterly
gravity gold recovery to 62% and a total recovery to 88.6%.
Mining performed strongly with a record level of ore mined, matched to processing throughput. Process throughput was a record for the quarter at 97,778 tonnes. This reflects efforts made in
the continual debottlenecking of the plant. below:
Summary quarterly production figures are tabulated
e
e
Units | FY16 | FY16 | FY17 | FY17 | FY17 | |
Ore Mined | t | 81,087 | 75,927 | 88,890 | 96,988 | 185,878 |
Mined Grade ‐ Gold | g/t | 6.62 | 6.96 | 4.21 | 4.69 | 4.46 |
Mined Grade ‐ Silver | g/t | 12.4 | 16.0 | 12.5 | 12.0 | 12.19 |
Mined Grade ‐ Lead | 2.15% | 3.06% | 2.19% | 2.00% | 2.09% | |
Mined Grade ‐ Zinc | 1.65% | 3.31% | 3.15% | 2.36% | 2.73% | |
Ore Processed | t | 83,522 | 74,665 | 85,314 | 97,778 | 183,092 |
Processed Grade ‐ Gold | g/t | 6.51 | 6.95 | 4.00 | 4.82 | 4.44 |
Processed Grade ‐ Silver | g/t | 12.69 | 15.84 | 12.76 | 11.77 | 12.23 |
Processed Grade ‐ Lead | 2.22% | 3.04% | 2.23% | 1.96% | 2.09% | |
Processed Grade ‐ Zinc | 1.80% | 3.17% | 3.27% | 2.38% | 2.80% | |
Gold recov ry | 81.2% | 83.9% | 84.3% | 88.6% | 86.6% | |
Silver recovery | 85.2% | 85.1% | 84.3% | 88.6% | 86.6% | |
Lead recovery | 87.6% | 93.0% | 93.2% | 90.8% | 91.9% | |
Zinc recovery | 92.4% | 92.5% | 90.2% | 91.2% | 90.7% | |
Gold Production | oz | 14,184 | 14,035 | 9,254 | 13,427 | 22,680 |
Silver Dore Production | oz | 7,385 | 8,555 | 6,269 | 9,561 | 15,831 |
Concentrat produced | DMT | 5,874 | 8,081 | 8,021 | 7,171 | 15,192 |
Gold sold | oz | 14,652 | 13,280 | 9,683 | 13,079 | 22,762 |
Concentrate sold | dmt | 4,886 | 10,379 | 5,171 | 10,380 | 15,551 |
Payable Lead sold | t | 1,195 | 2,585 | 1,064 | 2,220 | 3,283 |
Payable Zinc sold | t | 931 | 1,690 | 1,052 | 2,257 | 3,309 |
Payable Silver sold | oz | 4,722 | 6,164 | 0 | 2,992 | 2,992 |
Aurelia Metals Dec‐16 Qtr Summary
Mar Qtr
Jun Qtr
Sep Qtr
Dec Qtr
YTD
MININGA total of 96,988 tonnes of ore was mined during the quarter at an average grade of
.69 g/t gold,
% lead and 2.4% zinc. Lateral underground development ac
ieved during the quarter was 684
metres (726 metres in the prior quarter).
Unit costs continue to reduce with increased ore mined.
Unit costs of ore processed reduced from $70/t in the Septembe quarter.
XPLORATION DRILLINGquarter to $60/t in the current
Drilling during the quarter focused on lower section of the North Pod and the northern end of the Hera lode sequence. All current exploration results have been released to ASX on 28 November, 1 December and 13 December 2016. For detailed drill information refer to these releases. Best high grade gold and base metal results included:
7 metres at 88.1 g/t Au and 4.3% Pb+Zn (HRUD370)
6 metres at 31.4 g/t Au and 8.9% Pb+Zn (HRUD386)
7 metres at 4.7g/t Au and 52.7% Pb+Zn (HRUD374)
The drill results indicate that the North Pod has potential to become the highest grade zone at Hera to date.
Further exploration drilling will be conducted drilling out the North Pod and exploring the depth extensions and northern extensions of the Hera sequence.
l
A Resource and Reserve update will be provided mid-year from the current drilling program.
Figure 1. Long section showing the location of the most recent drilling results in reference to the
current Inferred Resource at North od
PERMITTINGDuring the quarter, Aurelia was
ranted Mining Lease ML 1746 ( urface activity excluded) which
ill enable underground development to access the North Pod and provide development for further
drill platforms for exploration to the North.
A modification and approval of the existing Mine
Operating Plan is required from planning authorities prior to mining.
PROCESSINGA total of 97,778 tonnes of ore was processed during the quarter grading 4.82 g/t gold, 2.0% lead and 2.4% zinc.
Process throughput increased to record levels during the quarter with the combination of low base
metal grades and continued deb
ttlenecking of the plant. Throughput reached an annualised rate
of 390,000 t/y for the quarter, some 11% above the 350,000 t/y design rate.
Improvements to the gravity gold circuit continued in the quarter and delivered an increase in total
gravity recovery rate to 62%, with December producing 65.7%. has now achieved the Definitive Feasibility Study target level.
The gravity recovery performance
Total gold recovery improved in
he quarter to 88.6% with December producing 90.0%, with
potential of further improvement.
The lead and zinc circuit continu
s to perform strongly, with 7,171 tonnes of concentrate produced.
Unit costs per tonne of ore processed reduced to $68/t ($73/t last quarter) due to increased l
throughput and cost initiatives.
Further improvements are being developed to increase gold recovery and mill throughput.
Two shipments of base metal co
centrate were achieved in the quarter, with 5,132 tonnes of
concentrate sold in October and 5,248 tonnes sold in December.
CORPORATE
FINANCIAL PERFORMANCEFinancial performance of the Hera operation is summarised in the table below. The q
arterly AISC
R
n
9
4
Y
e
of $821/oz (US$592/oz) was delivered by strong levels of gold production, two concentrate shipments (by-product credits completed on a sales basis) comb ned with a maintenance of the total cost base.
Aurelia Metals Dec‐16 Qtr | U its | Mar Qtr | Jun Qtr | S p Qtr | Dec Qtr | YTD | ||
Summary | FY16 | F 16 | Y17 | FY17 | FY17 | |||
Mining Processing Site Administration Concentrate Transport & efining Net Inventory adjustments Royalties Third party smelting, refining Total By‐Pro uct Credits | $/oz $/oz $/oz $/oz $/oz $/oz $/oz $/oz | 449 414 59 65 51 85 132 (341) | 424 449 89 100 27 66 257 (790) | 617 645 96 137 (258) 76 228 (671) | 449 | 521 565 85 127 (51) 99 283 (909) | ||
505 77 119 102 117 323 | ||||||||
(1,085) | ||||||||
Adjusted Operating Costs* | $/oz | 914 | 622 | 870 | 607 | 719 | ||
Corporate admin and other Sustaining exploration | $/oz $/oz | 67 171 | 78 344 | 120 249 | 72 | 92 187 | ||
142 | ||||||||
AISC (All‐in Sustaining Cost)* | $/oz | 1,153 | 1, 43 | 1,238 | 821 | 999 |
d
d
m
* Operating Costs and AISC are calculated on gol
2
1
4
1
o m
sold with by‐products credited
0
n a sales basis. Base metal sales are approximately 30% of
total sales and are accounted for as a by‐product credit. The timing of Pb‐Zn ship
ents (approx. every 6 weeks) will create volatility in the
Company's reported ASIC due to timing of base
t
etal by‐product credits and concentrate inventory movements.
h
g
e
w
All financials are preliminary and subject to chan e. Final revenue will be adjusted due to quotational period pricing, product inventory and
smelter payable adjustments, w ere applicable. Cost data is preliminary and subj ct to final revie
and adjustment.
In consideration of strong financial performance, the Company undertook a voluntary $10.08 million debt repayment during the quarter, reducing outstanding debt by 8% to $115 million. The repayment of Facility A also had the consequential benefit of cancelling 108 million Glencore Options.
Cash at bank increased during the quarter by $2.55 million to $21.40 million as at 31 December 2016. The increase in cash is after the repayment of $10 million in debt. For reporting purposes the Company now states its cash balance excluding $3.5 million utilised as cash backing for
environmental bonds.
$18.85 million.
Accordingly, the September Quarter closi
g cash balance is restated at
Hera quarterly EBITDA (provisional only and subject to final revi
w) was $13.2 million, compared
ith $8.0 million in the prior quarter. Financial performance was enhanced by high g
ld and base
metals sales together with stron
base metal and gold prices.
Aurelia net cash flow in the period was positive $2.55 million. T
is was generated by Hera EBITDA
of $13.2 million, less $1.9 million of mine and process capital, less $0.7 million in exploration capital, less $0.9 million in corporate administration costs, less $10 million debt repayment, plus a net $2.9 million inflow from a decrease in working capital & other (primarily a decrease in concentrate stocks).
Aurelia Metals Ltd. published this content on 23 January 2017 and is solely responsible for the information contained herein.
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