Bought a few today - on the basis that I don't think it can go any lower, junior goldies seem to back in favour, low production costs (-ish, compared to other Aussie gold co's) & advances at Nullagine, WA
Check out the quarterly activities report dated 18/4:
http://www.millenniumminerals.com.au
Also see http://www.proactiveinvestors.com.a...n-climbs-at-nullagine-gold-project-42198.html
START
Millennium Minerals (ASX: MOY) has delivered an unaudited EBITDA of $10.1 million for the March quarter 2013, on the back of gold production from the company's Nullagine Gold Project in Western Australia.
The $10.1 million also excludes the positive hedge book valuation adjustments, which is "in the money" and valued at $26 million, based on A$1,320 an ounce spot price.
Gold poured was up 43% over the previous quarter, totalling 17,089 ounces fine gold against a base case forecast of 17,273 ounces fine gold.
Importantly the total unit costs including both royalties and a $281 per ounce non-cash amortisation and depreciation charge were $1,139 per ounce (C1 unit cash costs were well contained for the quarter at $826 per ounce poured against a base case forecast of $829 per ounce poured).
Millennium's gold sales for the period were 15,729 ounces at an average price of AUD$1,610/oz, and the company has a cash and gold bullion holding at 31 March was $11.1 million.
Proceeds from gold sales amounted to $25.3 million, up 31%. Another plus for the company was that all obligations under the debt facilities were met with a $1 million repayment during the quarter.
Strong quarter
Millennium said that the outstanding March performance brought quarterly results to forecast levels after February's output was affected by Cyclone Rusty.
Forward Guidance
Millennium added that the base case production planning for FY2013 is indicating an operating forecast at design throughput rates of 1.5 million tonnes milled to yield 78,000 ounces.
The production plan indicates higher gold output in the second half arising from commencement of mining at the higher grade Golden Gate deposits.
Processing of this higher grade ore is scheduled for the December quarter. Projected C1 unit operating costs are forecast at $829 per ounce and $881 per ounce after providing for royalties.
As a guide total cash costs including royalties and corporate overheads, before sustaining capital, depreciation and amortisation and exploration are estimated at $937 per ounce produced.
Upper production guidance (83,000 ounces) at nameplate reflects slightly higher grades mined. C1 unit costs under this case would be approximately $785 per ounce or $44 per ounce lower than expected costs under the base case plan.
The company expects gold production for the June quarter 2013 to be between 16,000 ounces and 18,000 ounces in line with the base case forecast.
Expansion
The increase in Ore Reserve allows the Company to now study various production scale options. These options relate to assessing the feasibility of higher throughput rates, in the order of 1.7Mtpa to 2.5 Mtpa, to achieve minimum annual production rates of 90,000 ounces and possibly above 100,000 ounces gold over the current life of mine at a slightly lower head grade.
Analysis
Millennium is a profitable gold producer and the total unit costs of $1,139 per ounce including both royalties and a $281 per ounce non-cash amortisation and depreciation charge.
The company is also well-positioned to ride out the current volatility in the gold price, and has an "in the money" hedge book valued at $26 million (mark to market at a gold spot price of A$1,320/oz).
Millennium is also in a position to reduce costs per ounce, and on the upper production guidance of 83,000 ounces at nameplate reflects slightly higher grades mined, the C1 unit costs under this case would be around $785 per ounce or $44 per ounce lower than expected costs under the base case plan - which has the potential to increase profitability.
END
Check out the quarterly activities report dated 18/4:
http://www.millenniumminerals.com.au
Also see http://www.proactiveinvestors.com.a...n-climbs-at-nullagine-gold-project-42198.html
START
Millennium Minerals (ASX: MOY) has delivered an unaudited EBITDA of $10.1 million for the March quarter 2013, on the back of gold production from the company's Nullagine Gold Project in Western Australia.
The $10.1 million also excludes the positive hedge book valuation adjustments, which is "in the money" and valued at $26 million, based on A$1,320 an ounce spot price.
Gold poured was up 43% over the previous quarter, totalling 17,089 ounces fine gold against a base case forecast of 17,273 ounces fine gold.
Importantly the total unit costs including both royalties and a $281 per ounce non-cash amortisation and depreciation charge were $1,139 per ounce (C1 unit cash costs were well contained for the quarter at $826 per ounce poured against a base case forecast of $829 per ounce poured).
Millennium's gold sales for the period were 15,729 ounces at an average price of AUD$1,610/oz, and the company has a cash and gold bullion holding at 31 March was $11.1 million.
Proceeds from gold sales amounted to $25.3 million, up 31%. Another plus for the company was that all obligations under the debt facilities were met with a $1 million repayment during the quarter.
Strong quarter
Millennium said that the outstanding March performance brought quarterly results to forecast levels after February's output was affected by Cyclone Rusty.
Forward Guidance
Millennium added that the base case production planning for FY2013 is indicating an operating forecast at design throughput rates of 1.5 million tonnes milled to yield 78,000 ounces.
The production plan indicates higher gold output in the second half arising from commencement of mining at the higher grade Golden Gate deposits.
Processing of this higher grade ore is scheduled for the December quarter. Projected C1 unit operating costs are forecast at $829 per ounce and $881 per ounce after providing for royalties.
As a guide total cash costs including royalties and corporate overheads, before sustaining capital, depreciation and amortisation and exploration are estimated at $937 per ounce produced.
Upper production guidance (83,000 ounces) at nameplate reflects slightly higher grades mined. C1 unit costs under this case would be approximately $785 per ounce or $44 per ounce lower than expected costs under the base case plan.
The company expects gold production for the June quarter 2013 to be between 16,000 ounces and 18,000 ounces in line with the base case forecast.
Expansion
The increase in Ore Reserve allows the Company to now study various production scale options. These options relate to assessing the feasibility of higher throughput rates, in the order of 1.7Mtpa to 2.5 Mtpa, to achieve minimum annual production rates of 90,000 ounces and possibly above 100,000 ounces gold over the current life of mine at a slightly lower head grade.
Analysis
Millennium is a profitable gold producer and the total unit costs of $1,139 per ounce including both royalties and a $281 per ounce non-cash amortisation and depreciation charge.
The company is also well-positioned to ride out the current volatility in the gold price, and has an "in the money" hedge book valued at $26 million (mark to market at a gold spot price of A$1,320/oz).
Millennium is also in a position to reduce costs per ounce, and on the upper production guidance of 83,000 ounces at nameplate reflects slightly higher grades mined, the C1 unit costs under this case would be around $785 per ounce or $44 per ounce lower than expected costs under the base case plan - which has the potential to increase profitability.
END
