New Century Resources is celebrating a major milestone, producing its 500,000th tonne of zinc concentrate since restarting operations at the Century mine site in August 2018.
The company also announced that it had executed a zinc price hedging program for the remainder of this financial year, securing contracts to guarantee a floor price of $US1.20/lb ($US2,645/t) for all sales in the March quarter and 50 per cent of sales in the June quarter.
New Century said the hedging at this price captured strong tail winds within the industry.
It expects to deliver material growth in its adjusted EBITDA for the December 2020 quarter compared to the reported $A13.2 million for the September quarter.
“The milestone of producing 500,000 tonnes of zinc concentrate is a significant achievement for the company and testament to the efforts of our team on site, as well as our strong culture and partnerships with stakeholders throughout the region,” New Century Resources managing
director Patrick Walta said.
“In addition, New Century’s hedging program has successfully locked in the current buoyant market conditions for the remainder of the financial year, while also providing full exposure to further zinc price improvement.
“The company sees strong potential for zinc price upside, given the continued demand from growth within China and the likely near-term improved demand around the world as infrastructure-focused government stimulus packages are rolled out.
“This demand is in contrast to continued global supply challenges, with traditional underground miners facing additional operational difficulties in improving production while also implementing social distancing and COVID-19 mitigation practices.”
The New Century operation in Queensland’s lower Gulf region is exploiting tailings at the former open-cut Century zinc site through hydraulic mining.
The tailings are converted into a slurry, which is channelled and pumped to the Century processing plant.