Mining News
Gem Diamonds (LON:GEMD) (GEMD LN, 279p, ? 0.7%)) has posted strong FY?12 results with revenue of US$396 million, up 49% from 2010, underlying EBITDA of US$180 million and Basic EPS (continuing operations) of 47 US cents, up 213%. Key driver for the business was the record production (112,367ct, +24%) and grade (1.62 cpht, +35%)at Let?eng which included the 550 carat Let?eng Star which sold for US$16.5m and helped push average price per carat from US$2149 in FY?10 to US$2,776 in FY?11. Development at Ghaghoo, Botswana continues with 21% of the US$85 capex already spent and first diamond production is expected in 2013. Meanwhile, at Let?eng, project Kholo which was approved in November should increase production to 180-200kcts by mid 2014 at a cost of US$280m.
Hochschild Mining (LON:HOC) (BUY, 592p) (HOC LN, 475.3, ? 2.7%) FY?11Results were positive. Although revenues of $987.7m (+31%) were in line with our expectations, EBITDA US$563.4m (+42%) vs. US$493.5m, NPAT US$165.9m (+75%) vs. US$141.4 and EPS US$0.49 (+75%) vs. US$39.4 all exceeded our own forecasts. FY12 will be key for Hochschild as, although production is forecast to fall to 20m attributable silver equivalent ounces compared to 22.6m in FY?11, construction will commence at Inmaculada and Crespo which have the potential to increase production by 10Mozpa.
Metminco (LON:MNC) (MNC LN, 11.13p, ? 1.1%) FY11 Results highlighted the A$70.4m raised during the year to fund exploration at Los Calatos and Mollacas, acquire the remaining interest in Mollacas, Vallecillo and Loica and remove Barrick?s option to buy back 51% of Los Calatos. At Los Calatos, the initial 34,200m drilling program was completed in December and a 100,000m infill drilling program is currently underway whilst at Mollacas, a 2,250m diamond and 1,154m RC drilling programme were finished for the resource upgrade and metallurgical test work to be completed in preparation of the Feasibility study later this year. Cash at year end was A$44m.
African Eagle (AFE LN, 6.13p, ? 0.0%) report positive leaching test work on its Dutwa nickel project indicated it is amenable to atmospheric pressure tank acid leach and the company in collaboration with Lycopodium are developing the preliminary Dutwa process flow sheet, to be modelled in the pilot plant test programme, scheduled to commence in 2Q?12.
Pathfinder Minerals (LON:PFP) (PFP…
