Millennium Minerals has boasted better-than-expected gold production at its Nullagine project, with costs in-line with previous targets.
Perth-based Millennium produced 22,760 ounces of gold at Nullagine in the three months to June at an all-in sustaining cost of $1,193/oz.
The result drove the company’s production figure in the year to-date up to 45,926oz; putting it on track to beat its CY16 guidance of between 80,000oz and 85,000oz.
AISC for the six months to June 30 came in at $1,194/oz.
The company’s cash on hand increased by nearly $6 million to $20.4 million, with debt at zero thanks to a $20 million capital raising last year which was used to pay off a remaining $14 million owed to its largest shareholder, IMC Group.
Millennium posted free operating cashflow of $10 million, before $3.2 million which will be spend on exploration drilling and $1.8 million on tenement acquisitions.
“These operating results are enabling us to capitalise on the current strong gold price and generate substantial free cashflow to continue building,” Millennium chief executive Glenn Dovaston said.
“We continued our significant investment in exploration drilling during the quarter.
“As our recent announcements have shown, this drilling is generating outstanding results which we expect will lead to a further increase in mineral resources and ore reserves in October 2016, in line with our strategy to grow the mineral inventory and mine life at the project.
“We believe there is also excellent potential for further mineral inventory growth through the deep drilling program now underway.
“The exploration upside beyond the shallow oxide deposits at the project has barely been scratched and the few deeper holes drilled in the past have highlighted the potential to establish a significant mineral resource base at depth.”
Millennium shares closed 2.1 per cent higher to 23.5 cents each.
