Austral Resources Australia has reported commercial levels of timely copper production at its Mt Kelly crushing/processing facility in North West Queensland’s Mt Isa Region.
As concerns about long-term copper supply grow from the ranks of electric vehicle manufacturers, the Company has become cashflow positive after achieving an average production rate of 33.3 tonnes per day of plated copper for a total of 976 tonnes over a 29-day operating period.
The Company said total costs excluding exploration came in at US$2.72 per pound – a sizeable return even at today’s much softened US$3.80/lb trading price.
PATH TO POSITIVITY
Austral’s production is moving towards 33.5 tonnes of plated copper cathode per day, following a steady ramp-up over October and November.
Total costs in December 2022 were A$8.9M. Operational costs are expected to enter a period of decline soon as the Company’s production hits a steady state.
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.
In the future, 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.”
Austral Resources is a copper cathode producer in the Mt Isa region, Queensland, Australia. Its Mt Kelly copper oxide heap leach and solvent extraction electrowinning (SX-EW) plant has a nameplate capacity of 30,000tpa of copper cathode. Austral has developed its Anthill oxide copper mine, which has an Ore Reserve of 5.06Mt at 0.94% Cu. The Company expects to produce 40,000t of copper cathode over four years from mid-2022.
Austral also owns a significant copper inventory with a JORC-compliant Mineral Resource Estimate of 60Mt@ 0.7% Cu (420,000t of contained copper) and 2,100km2 of highly prospective exploration tenure in the heart of the Mt Isa district, a world-class copper and base metals province. The Company is implementing an intensive exploration and development program designed to extend mine life, increase its resource base and then review options to commercialise its copper resources.