12/01/2022 - 11:28

GWR spurred on restart

12/01/2022 - 11:28

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GWR shares were up some 13 per cent on the news that mining operations would recommence at the C4 project in Wiluna after being put on hold in September last year.

GWR spurred on restart
C4 deposit in Wiluna Western Australia. Photo: GWR Group

GWR shares were up some 13 per cent on the news that mining operations would recommence at the C4 project in Wiluna after being put on hold in September last year.

GWR was one of a handful of iron ore juniors that suspended mining operations in the wake of a dramatic fall in the commodity price between July and November.

But a gradual uptick in the iron ore price since then has prompted the West Perth-based producer to restart operations.

The announcement to the ASX today sent GWR’s share price up as much as 13 per cent to 21 cents, its highest price since before scaling back operations four months ago.

Crushing from the run of mine pad and hauling continued during the downtime between October and December, with GWR noting it had significant stockpiles to negotiate contracts for over the period.

It secured fixed price sales contracts of highgrade lump product in October for 57,859 wet metric tonnes and December for 57,150 wet metric tonnes.

The scale back had a knock-on effect on Alliance Contract partner Pilbara Resource Group however, which went into voluntary administration in December.

GWR continues to work with Pilbara Resource Group, but emphasised that the administration process was unlikely to have an impact on its business.

Looking ahead, the miner says it is well-placed to increase volumes to take advantage of higher forecasted prices for the commodity.

For the near-term it has secured fixed price sales contracts for 145,000 tonnes of product for January, February and March 2022.

GWR chair Gary Lyons said the company had worked through many challenges over the past few months.

“I am proud of what we have achieved in difficult circumstances,” Mr Lyons said in a statement.

“The GWR team has taken a proactive approach in order to extract value from its flagship C4 Iron Ore mine and has continued to export iron ore from existing stockpiles whilst mining was suspended.”

The iron ore price is sitting around US$126 per dry metric tonne.

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