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Gindalbie confirms due diligence on a ‘small number’ of projects

29th July 2016

By: Mariaan Webb

Creamer Media Contract Publishing Editor

  

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JOHANNESBURG (miningweekly.com) – Iron-ore junior Gindalbie Metals, a joint venture (JV) partner in the Karara iron-ore mine, in Western Australia, is advancing plans to enter other projects.

The ASX-listed miner reported on Friday that it was undertaking due diligence studies on a “small number” of selected projects, as part of a strategy to grow shareholder value by deploying its existing cash resources.

At the end of June, Gindalbie had term deposits of A$25-million and cash reserves of A$13.9-million.

The company reported that the Karara JV project with Chinese steel producer Ansteel had delivered 1.62-million wet metric tonnes of magnetite concentrate in the June quarter, a 9.3% decrease on production in the March quarter. The lower output was attributed to planned and unplanned maintenance of the crushing circuit.

A total of 25 shipments were completed from the Karara Export Terminal, at Geraldton, totalling bout 1.52-million wet metric tonnes (wmt) of magnetite concentrate.

The JV’s average magnetite C1 unit cash costs were $63/wmt in the quarter under review, compared with $58/wmt in the March quarter. The increase in costs was owing to lower concentrate production and a higher strip ratio.

The JV managed to secure an additional loan of $200-million, for which Ansteel is providing a guarantee.

Edited by Creamer Media Reporter

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