Qld zinc mine ‘well timed’, production brought forward – MMG

PERTH (miningweekly.com) – First production from the $1.4-billion Dugald River zinc project, in Queensland, has been brought forward from the first half of 2018 to late 2017, as the project development advances ahead of schedule.

ASX-listed MMG CEO Jerry Jiao on Wednesday said that with production of about 170 000 t/y of zinc-in-concentrate, and an increasingly strong price outlook for zinc, the Dugald River project was well timed and positioned to be within the world’s top ten zinc mines when operational.

At the end of June, the Dugald River project was some 73% complete, with MMG telling shareholders that the company still had some $600-million of capital spend remaining at the project.

This was at the low end of the previous guidance range of between $600-million and $620-million.

Meanwhile, MMG on Wednesday reported that net profit after tax for the half-year ended June had increased by $206.7-million on the previous corresponding year, to $113.7-million.

Revenues for the period increased by 231% from $586.1-million to $1.94-billion, while earnings before interest, taxes, depreciation and amortisation increased by 666% from $134.3-million to just over $1-billion.

“Following an industry-leading ramp-up, our major asset Las Bambas marked its first full year of production on June 30. Las Bambas produced over 430 000 t of copper in its first year of operation and ranks as one of the world’s top ten copper mines based on production,” Jiao said.

He noted that the company produced 290 758 t of copper and 37 519 t of zinc in the first half of 2017.

“With our acquisition of Kinsevere and Las Bambas in recent years, as well as our investment in the Dugald River zinc project, we have re-weighted our portfolio from zinc to copper and our economic center has shifted from Australia and Asia to Africa and Latin America,” Jiao added.

“We are now generating strong cash flow and continue to deliver compelling growth projects.”