Copper producer Austral Resources Australia Ltd (ASX:AR1) has achieved commercial levels of production at its Mt Kelly crushing/processing facility in the Mt Isa region of Queensland and is operationally cash flow positive.
Following a steady ramp up over October and November, Austral successfully achieved an average of 33.3 tonnes of plated copper per day during December 2022, totalling 976 tonnes over the month. Total costs in the month of December 2022 were A$8.9M. Operational costs are expected to soon enter a period of decline as the company’s production hits steady state.
Austral’s production is moving towards 33.5 tonnes of plated copper cathode per day.
Operationally cash flow positive during December
December 2022’s 976 tonnes of copper plated, hindered by previously reported and resolved delays from severe wet weather events, was enough for Austral to record its first operational cash flow positive month. Total costs in the month of December 2022 were A$8.9M. Going forward, Austral expects this cost to begin a period of decline as production rapidly moves towards an average production rate of 33.5 tonnes of plated copper per day from the company’s Mt Kelly processing facility.
“It was a challenging 2022 for our team, with a lot of variables outside of our control impacting our first 12 months as an ASX listed company – from recommissioning existing infrastructure that was dormant for a period of time, severe weather events causing power outages and operational disruptions, an escalation of diesel prices by 65%, to a bearish copper price,” Managing Director and CEO, Dan Jauncey said.
“And do not forget the little elephant in the room being COVID. At one stage we basically had the site shut down for day shift and could only run night shift due to staff being quarantined in our on-site camp. From the board to the camp chiefs, we have been shoulder to shoulder, with one goal in mind, becoming operationally cashflow positive. And we achieved that in December.
“The fact our mining campaign with Thiess is still 12% ahead of schedule means, at this stage, Anthill mining will finish earlier than our budget has factored in, that dovetailed in with our business producing copper cathode nine months after our mining costs cease, will substantially reduce the C1 cost we saw in December.
“I would also like to take this opportunity to recognise the faith and trust our investors and service providers placed in us when we restructured our agreement with Thiess and took on a A$12.8 million finance facility through Secover. We knew these setbacks would be temporary, and today’s announced results illustrate the faith and trust placed in Austral and its team was well deserved.
“We look forward to an increasingly productive year during 2023, and further repaying the faith and trust placed in us with operational success.”
For further information please visit: https://www.australres.com/
