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July 18, 2017

Tomingley Gold Operations (TGO)

Record gold production in the quarter of 27,924 ounces at AISC of A$906/ounce completed an excellent second half of the 2017 financial year.

Site operating cash flow after development costs for the quarter was A$30.7M.

Quarter Results

  • Gold production was above forecast at 27,924 ounces and well above the previous quarter of 18,721 ounces
  • Site operating cash costs reduced to A$702/ounce with all in sustaining costs (AISC) of A$905/ounce
  • Gold sales 31,107 ounces for revenue of A$52.6 million at an average price of A$1,690/ounce
  • Gold forward contracts at 30 June 2017 of 17,500 ounces at average price of A$1,716/ounce.

Full year production for FY2017 was 68,836 ounces with an AISC of A$1,335/ounce, including H2 production of 46,645 ounces with an AISC of A$1,038/ounce, generating cash flow of A$32.7 million (full year site operating cash flow after development costs).

Dubbo Project (DP) 

An initial twelve month toll treatment agreement was concluded with Vietnam Rare Earth JSC (VTRE) as part of the extended due diligence of downstream processing, allowing evaluation of both the physical separation process capability as well as commercial, logistics and sales. 

Two shipments of light rare earth concentrates totalling 80 tonnes acquired on market by ASM were processed, producing approximately 31 tonnes of separated rare earth oxides, including cerium, lanthanum, praseodymium, and neodymium oxides. Final processing is expected to be completed in July, with products then available for sale as pure oxides, or after conversion, as metal alloys. 

Upward price movements in the zirconium chemicals and powders, and rare earth magnet markets are signalling renewed confidence in the sectors, with further increases anticipated during 2017. 

The modularised build is being optimised and costed by Outotec to further support 

Corporate 

The Group’s cash position totalled A$44.9M with A$42.0M in cash and bullion on hand at fair value of A$2.9M, an increase of A$15.9M from the previous quarter and an increase of A$15.2M for the financial year.  

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