Update 2014/201515 Sep 2014 08:27
Frontier Mining (AIM:FML), the AIM listed exploration, development and production Company focused on Kazakhstan, is pleased to announce its Interim Results for the six months ended 30 June 2014.
Operational and Corporate Highlights
· Production for the first six months of 2014:
o 181,326 tonnes of ore were mined
o 165,947 tonnes of ore were stacked
o 511 tonnes of copper cathode were sold
· Financial performance:
o Average sales price of US$6,784 per tonne
o Average cash cost of production, excluding general and administrative costs, of US$4,353 per tonne. The increase in cash cost compared to 2013 was mainly due to higher costs during the winter months.
· Contractor hired to conduct stripping at a cost of 273 KZT (1.5 USD) per m3 (excluding VAT), which has reduced operating costs further at Benkala.
o The ore mining contract was awarded as a result of positive working experience with stripping and we now have considerable confidence in this contractor being able to deliver on time and on budget.
· Second agglomeration line commissioned and now operational
· Copper cathode production from Benkala operations is expected to be in the range between 1,500 and 2,000 tones for the 12 months to 31 December 2014
Post period end
· Regulatory approval from the Ministry of Industry and New Technology of the Republic of Kazakhstan ("RoK") to proceed with the sale of Naimanjal licence area to Union Transnationale Miniere S.A. ("UTM").
Yerlan Aliyev, Chairman and Chief Executive of the Company, said: "While all of the operating cash flow is being used to finance ongoing operations, during the first half of 2014 Company continued conversations with financing institutions and counterparties in order to negotiate extensions of debt repayment obligations. The sale of Naimanjal is viewed as a source of financing to pay down part of the loans and provide finance for the purchase of new equipment required to improve production levels; however, the transaction has yet to be completed and so we were not able to use the sale proceeds to prepare for the 2014 production season.
"Over the course of the last 24 months of exploration and evaluation of data obtained on Benkala, South Benkala and other opportunities in very close proximity, it has been determined that the best course of action that will maximise shareholder value will be through joint partnership with an experienced well capitalised operator which can bring expertise to the project both in large scale project management and complimentary technical capabilities on the ground. Frontier has had several approaches over the past few years from interested parties wishing to participate in this project and has appointed advisers to identify and engage with the most appropriate partner who can deliver the required expertise and support."
Looking very good :)