Shares in local gold miner Millennium Minerals closed 13.7 per cent higher today on news it had increased its projected gold production by 11 per cent while lowering costs.
In a statement today, Millennium said gold production for the 2015 financial year would be between 80,000 ounces and 83,000oz, while all-in sustaining costs would be reduced to between $1,200/oz and $1,250/oz.
“This revised production guidance for the Nullagine gold project stems primarily from forecast increases in mined ore tonnages, milled head grade and processing plant throughput rates for the project,” the company said.
“Cost reductions achieved are a result of both improved mill throughput and a number of cost saving measures implemented since the start of the year.”
Millennium said the cost reduction measures had delivered over $12 million in annualised cost savings so far.
The company also expects to reduce its senior debt by $5.1 million in the current quarter, reducing its principal outstanding to $6.1 million at September 30.
It expects to pay off all of its senior debt within the first half of 2016.
Chief executive Glenn Dovaston said the revised production and cost guidance showed the company’s turnaround strategy was delivering positive results.
“We are managing to outperform both wining the mining and processing operational areas,” he said.
“This is underpinning our production forecasts and enabling us to maximise cashflow and hence reduce our senior debt rapidly.
“Our turnaround strategy is working and we are expecting to be well positioned to unlock the potential value of our Nullagine gold project tenements.”
Millennium flagged a $76 million impairment on its Nullagine gold assets in March, on the back of a material downgrade in ore reserves.
Millennium closed 0.4 cents higher to 3.3 cents.
