Zinc production up, long term commodity outlook strong
MMG reported significant zinc production in its March Quarter Production Report released today with 139,259 tonnes of zinc in concentrate produced, up 154% on the previous quarter and following the recommissioning of the Century concentrate transport pipeline late last year.
MMG CEO Mr Andrew Michelmore said that MMG had a good quarter characterised by strong mining production and mill throughput resulting in solid results across all product categories.
“This quarter’s results demonstrate the ongoing value that MMG can derive from its current assets,” he said.
“This year we will continue to build on these strong operational results through internal development and organic growth in addition to identifying potential new growth opportunities.”
“With the financial backing and market intelligence of our shareholder China Minmetals’ behind us, MMG is poised to build the next leading global diversified minerals and metals company,” he said.
Lead was also up 62% on the previous quarter with 8,541 tonnes of lead in concentrate produced, also driven by the Century restart, and copper in concentrate production up 25% to 12,153 tonnes on improved utilisation of the mill at Golden Grove.
Copper cathode production at Sepon was also strong with the operation reporting its best ever first quarter with 17,219 tonnes of cathode and 25,373 ounces of gold poured.
Major projects including the Sepon copper expansion, Rosebery ventilation shaft and Golden Grove tailings storage facility all moved forward during the quarter.
Near mine exploration highlights included the interception of copper at the targeted depth of 1,800 metres at Golden Grove’s Gossan Hill mine and encouraging gold drill results returned in near-surface oxide gold from several prospects at Sepon.
Demand for zinc concentrates strengthened during the quarter, pushing spot market TCs down. The copper concentrate market remained extremely tight during the period with benchmark TCRC’s decreasing. Copper cathode demand in MMG’s main markets was firm.
This quarter reflects MMG’s outlook that long term fundamentals for base metals are strong, while some volatility will still be seen in the short term.
A media teleconference will be held at 10.30am today during which Chief Operating Officer Mr Brett Fletcher will review the results and take questions. For details or enquiries please contact:
T +61 3 9288 0850 / +61 417 144 524
T +61 3 9288 0996