Unity revenue declines as takeover close draws near

PERTH (miningweekly.com) – Takeover target Unity Mining has reported a 42% decline in revenue for the six months ending December, compared with the previous corresponding period, as mining ceased at the Henty mine, in Tasmania.

Unity also reported a net loss after tax of A$9.6-million, which was on par with the net loss of A$9.4-million reported in the previous corresponding period, after an impairment of more than A$10.8-million was recorded for the Dargues gold mine, in New South Wales.

The Henty mine produced 12 502 oz of gold during the interim period under review, down 48% on the 24 202 oz produced during the previous corresponding period.

Gold sales revenue reached A$20.8-million during the six months under review, from the sale of 13 283 oz of gold at an average price of A$1 545/oz.

Meanwhile, Unity in September of last year decided not to proceed with on-site cyanide ore processing at its Dargues gold mine, given the current market environment and public feedback.

Instead, the company took the decision to revert back to the original processing plans for the Dargues mine and would seek approval for relatively minor modifications to allow for the full development of the gold mine to start.

By December, Unity had signed a heads of agreement with Westlime, providing the company the option to process gold and silver concentrate from Dargues. Westlime had agreed to allow up to 50 000 t/y of gold/silver concentrate to be processed at its facility, for a minimum period of five years.

Unity in December also agreed to a A$33-million takeover offer from shareholder Diversified Minerals, under which shareholders would receive 2.9c for each share not already held by Diversified Minerals.

The offer would comprise 1c a share to be received through an equal capital reduction and 1.9c a share as scheme consideration for Diversified Minerals.

Diversified Minerals was expected to take ownership of Unity by the second half of this financial year.