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News
17.03.2010
Bass Metals Announces First Half Operating Profit of $3.1 Million
Bass Metals Announces First Half Operating Profit of $3.1 Million
Result Underpinned by Continued Strong Performance From Que River Mine
Holding Costs for Hellyer Mill and Exploration Write-Offs Result in Net $0.8m Half Year Loss
• Strong performance from Que River base metals mine contributes to interim operating profit of $3.1M for the six months to 31 December 2009
• Net loss after tax for the period of $815,806 due largely to holding costs associated with the Hellyer Mill and non cash write-off of exploration expenditure
• Operational result underpinned by ore sales totalling $10.6M generated from Zn, Pb, Cu, Ag and Au
• Strong cash position of A$16.7 million at the end of December 2009 following actual cash flow receipts of A$9.6m and successful equity raisings
• Confirmation of robust, viable new project at high-grade Fossey Zone following completion of Feasibility Study
• Continued exciting exploration results from Hellyer Mine Project area
12 March 2010 - Australian base metals producer Bass Metals Ltd (ASX: BSM) has delivered another strong result from its Que River base metals mine in Tasmania, today announcing an interim operating profit of $3.1 million. The result however was impacted by holding costs associated with the Hellyer Mill and non-cash write-offs of exploration expenditure, which translated to a net loss after tax of $816,806 for the period.
The result for the half-year to 31 December 2009 (2008 NPAT: $4.5M profit) was based on ore sales from the Que River operation of $10.6 million. Ore is sold to MMG’s nearby Rosebery processing facility under an Ore Sales Agreement which is expected to be completed in the September quarter, 2010.
During the period Bass initiated a $15.3 million capital raising, comprising a placement and rights issue, providing the Company with a robust cash position at the end of the reporting period of $16.7 million. This financing was completed in January, 2010 coincident with mandating RMB Resources Ltd to arrange a $12 million loan facility and hedging facility. This process is progressing well and on completion will ensure that the Company is sufficiently funded to undertake the development of the new Fossey Mine, the refurbishment of the Hellyer Mill and an increased exploration programme aimed at expanding the Company’s resource base in Tasmania in keeping with its aim of becoming a mid-tier base metals producer.
Payment of ongoing maintenance investment associated with the Hellyer Mill, which was acquired by Bass in March 2009, led to an increase in Other Expenses to $4.1 million (2008: $1.6 million). Work to refurbish the Hellyer Mill commenced in February 2010, with an expectation that it will be operational from mid-2010, in line with the Company’s Hellyer Mine Project.
Bass Metals’ Managing Director, Mike Rosenstreich said the interim result was consistent with the Company’s expectations, with Que River continuing to perform strongly despite the fact the operation is currently mining a lower-grade portion of the resource.
“Que River is now in its 3rd year of operations, it has created a sound operating and financial platform for Bass’ broader expansion strategy to develop a portfolio of producing assets in North-West Tasmania,” Mr Rosenstreich said. “Mining activities over the reporting period were focused on a lower-grade portion of the resource with a higher strip ratio - which resulted in a reduction in ore sold; however this was entirely expected and consistent with the mine plan and previous forecasts. Bass is in transition, moving toward larger scale mine production and processing its own ore. To do this we incurred significant costs associated with the plant maintenance and environmental management – again consistent with our expectations, but adversely impacting our ultimate accounting bottom line.”
These mining constraints at Que River led to a 24% drop in tonnes of ore sold to 29,032 tonnes compared with the previous corresponding period. However this was partly offset by stronger metal prices and higher grades.
Bass’ core focus during the period was the completion of a Definitive Feasibility Study (DFS) for the high-grade Fossey Zone, part of the Company’s Hellyer Mine Project. Following the completion of this DFS in October 2009, Bass’ Directors announced their intention to proceed with the Fossey mine development in January 2010, and Bass is on track to commence production from Fossey in the second half of the 2010 calendar year.
“This is an exciting time for Bass Metals, with development now well underway at Fossey. This is another robust, high grade project with projected low operating costs of US$0.33/lb of payable zinc (equivalent after credits) which puts it in the bottom third of the world cost curve. We are also looking at options to enhance that production profile such as tailings retreatment; so our team is very busy, highly motivated and enthusiastically moving this project forward,” Mr Rosenstreich commented. “This, together with our continued aggressive exploration program, and recent successes indicates that Bass could be building up momentum toward another discovery which puts the company well on track to achieve our goal of becoming a significant mid tier diversified mining house.”
- ENDS -
Released by:
Nicholas Read / Kate Bell
Read Corporate
Telephone: (08) 9388-1474
On behalf of:
Mr Mike Rosenstreich
Managing Director
Bass Metals Ltd
Telephone: (+61-8) 9322 8044
Website: www.bassmetals.com.au
Competent Person
The information within this report that relates to exploration results is based on information compiled by Mr Kim Denwer and Mr Mike Rosenstreich who are both full time employees of the Company. Mr Rosenstreich is a Member of The Australasian Institute of Mining and Metallurgy and Mr Denwer is a Member of the Australian Institute of Geoscientists. They both, individually, have sufficient experience relevant to the styles of mineralisation and types of deposits under consideration and to the activities currently being undertaken to qualify as a Competent Person(s) as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves and they consent to the inclusion of this information in the form and context in which it appears in this report.
Technical Detail
This Report aims to provide a high level summary of various technical aspects of the Company’s projects. For more details on the underlying technical parameters the reader is referred to the ASX Reports on the Bass Metals’ website, www.bassmetals.com.au .
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Result Underpinned by Continued Strong Performance From Que River Mine
Holding Costs for Hellyer Mill and Exploration Write-Offs Result in Net $0.8m Half Year Loss
• Strong performance from Que River base metals mine contributes to interim operating profit of $3.1M for the six months to 31 December 2009
• Net loss after tax for the period of $815,806 due largely to holding costs associated with the Hellyer Mill and non cash write-off of exploration expenditure
• Operational result underpinned by ore sales totalling $10.6M generated from Zn, Pb, Cu, Ag and Au
• Strong cash position of A$16.7 million at the end of December 2009 following actual cash flow receipts of A$9.6m and successful equity raisings
• Confirmation of robust, viable new project at high-grade Fossey Zone following completion of Feasibility Study
• Continued exciting exploration results from Hellyer Mine Project area
12 March 2010 - Australian base metals producer Bass Metals Ltd (ASX: BSM) has delivered another strong result from its Que River base metals mine in Tasmania, today announcing an interim operating profit of $3.1 million. The result however was impacted by holding costs associated with the Hellyer Mill and non-cash write-offs of exploration expenditure, which translated to a net loss after tax of $816,806 for the period.
The result for the half-year to 31 December 2009 (2008 NPAT: $4.5M profit) was based on ore sales from the Que River operation of $10.6 million. Ore is sold to MMG’s nearby Rosebery processing facility under an Ore Sales Agreement which is expected to be completed in the September quarter, 2010.
During the period Bass initiated a $15.3 million capital raising, comprising a placement and rights issue, providing the Company with a robust cash position at the end of the reporting period of $16.7 million. This financing was completed in January, 2010 coincident with mandating RMB Resources Ltd to arrange a $12 million loan facility and hedging facility. This process is progressing well and on completion will ensure that the Company is sufficiently funded to undertake the development of the new Fossey Mine, the refurbishment of the Hellyer Mill and an increased exploration programme aimed at expanding the Company’s resource base in Tasmania in keeping with its aim of becoming a mid-tier base metals producer.
Payment of ongoing maintenance investment associated with the Hellyer Mill, which was acquired by Bass in March 2009, led to an increase in Other Expenses to $4.1 million (2008: $1.6 million). Work to refurbish the Hellyer Mill commenced in February 2010, with an expectation that it will be operational from mid-2010, in line with the Company’s Hellyer Mine Project.
Bass Metals’ Managing Director, Mike Rosenstreich said the interim result was consistent with the Company’s expectations, with Que River continuing to perform strongly despite the fact the operation is currently mining a lower-grade portion of the resource.
“Que River is now in its 3rd year of operations, it has created a sound operating and financial platform for Bass’ broader expansion strategy to develop a portfolio of producing assets in North-West Tasmania,” Mr Rosenstreich said. “Mining activities over the reporting period were focused on a lower-grade portion of the resource with a higher strip ratio - which resulted in a reduction in ore sold; however this was entirely expected and consistent with the mine plan and previous forecasts. Bass is in transition, moving toward larger scale mine production and processing its own ore. To do this we incurred significant costs associated with the plant maintenance and environmental management – again consistent with our expectations, but adversely impacting our ultimate accounting bottom line.”
These mining constraints at Que River led to a 24% drop in tonnes of ore sold to 29,032 tonnes compared with the previous corresponding period. However this was partly offset by stronger metal prices and higher grades.
Bass’ core focus during the period was the completion of a Definitive Feasibility Study (DFS) for the high-grade Fossey Zone, part of the Company’s Hellyer Mine Project. Following the completion of this DFS in October 2009, Bass’ Directors announced their intention to proceed with the Fossey mine development in January 2010, and Bass is on track to commence production from Fossey in the second half of the 2010 calendar year.
“This is an exciting time for Bass Metals, with development now well underway at Fossey. This is another robust, high grade project with projected low operating costs of US$0.33/lb of payable zinc (equivalent after credits) which puts it in the bottom third of the world cost curve. We are also looking at options to enhance that production profile such as tailings retreatment; so our team is very busy, highly motivated and enthusiastically moving this project forward,” Mr Rosenstreich commented. “This, together with our continued aggressive exploration program, and recent successes indicates that Bass could be building up momentum toward another discovery which puts the company well on track to achieve our goal of becoming a significant mid tier diversified mining house.”
- ENDS -
Released by:
Nicholas Read / Kate Bell
Read Corporate
Telephone: (08) 9388-1474
On behalf of:
Mr Mike Rosenstreich
Managing Director
Bass Metals Ltd
Telephone: (+61-8) 9322 8044
Website: www.bassmetals.com.au
Competent Person
The information within this report that relates to exploration results is based on information compiled by Mr Kim Denwer and Mr Mike Rosenstreich who are both full time employees of the Company. Mr Rosenstreich is a Member of The Australasian Institute of Mining and Metallurgy and Mr Denwer is a Member of the Australian Institute of Geoscientists. They both, individually, have sufficient experience relevant to the styles of mineralisation and types of deposits under consideration and to the activities currently being undertaken to qualify as a Competent Person(s) as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves and they consent to the inclusion of this information in the form and context in which it appears in this report.
Technical Detail
This Report aims to provide a high level summary of various technical aspects of the Company’s projects. For more details on the underlying technical parameters the reader is referred to the ASX Reports on the Bass Metals’ website, www.bassmetals.com.au .
NEWSLETTER REGISTRIERUNG:
Aktuelle Pressemeldungen dieses Unternehmens direkt in Ihr Postfach:
<a href="http://www.irw-press.com/alert_subscription.php?lang=en&isin=AU000000BSM8">http://www.irw-press.com/alert_subscription.php?lang=en&isin=AU000000BSM8</a>
Mitteilung übermittelt durch IRW-Press.com. Für den Inhalt ist der Aussender
verantwortlich.
Kostenloser Abdruck mit Quellenangabe erlaubt.