(Alliance News) - Pembridge Resources PLC on Thursday said copper production has risen each month since operations at the Minto copper-gold-silver mine in Canada restarted in October 2019.
Pembridge's shares were re-admitted to the London Stock Exchange in December, having been suspended following the reverse takeover of Minto Explorations Ltd in June for GBP20 million.
December production was up, with copper in concentrate reaching 1,014 dry metric tonnes, up 57% from 644 dry metric tonnes in November and 74% from 583 dry metric tonnes in October. Total copper in concentrate for the three months ended December 31 was 2,247 tonnes.
Ore processed rose 23% to 38,890 dry metric tonnes in December compared to 31,575 dry metric tonnes in November. However, the November figure was 5.9% lower than October's 33,541 dry metric tonnes of ore processed. Total ore processed for the quarter was 104,005 dry metric tonnes.
Milling operations at Minto currently operate on a two-weeks-on, two-weeks-off schedule while mining operations are still developing underground in preparation for a higher mining rate later in 2020.
So far, Pembridge has received USD7.1 million in payment for production in October and November under its agreement with Sumitomo Canada Ltd. Under this, Minto recieves a 90% provisional payment for the copper concentrate produced at the end of each month.
Pembridge expects a "new high" in terms of its advanced payment for production in December as a result of higher copper production as well as stronger prices for copper and gold.
All production in 2019 was mines from the Minto East mining zone, where mining is set to complete in the second quarter of 2020. After that, production will continue from Copper Keel, the next mining zone.
Chief Executive & Chair Gati Al-Jebouri said: "I am very proud of what the Minto team has achieved during 2019. Following the restart of operations in October we have seen improved copper production levels each month. I am delighted to report that December's copper in concentrate production figures showed 57% increase on the previous month due to improvements in the head grade.
"Minto has already received in total over USD7 million from Sumitomo under our offtake arrangement, with a further payment for December's record production due imminently. All of this has been achieved with the plant still running on a two-weeks-on, two-weeks-off basis to ensure efficiencies during the ramp-up phase. Accordingly, we expect the revenue stream to continue to improve throughout 2020, due to increases in the production rate, as well as the increasingly positive outlook for copper prices, which have already gained circa 10% since mining operations recommenced."
Shares in Pembridge were up 1.8% at 15.52 pence in London on Thursday.
By Anna Farley; annafarley@alliancenews.com
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