Endeavor’s future looking positive
Wednesday July 8, 2009
After a negative outlook last year, the future is looking brighter for CBH Resources’ Endeavor Mine according to its latest mine production update.
Plans are now underway to consider an increase in production to a rate of approximately 850,000 tonnes per annum provided there is a sustainable recovery in metal prices.
CBH Resources’ Chief Executive Officer Stephen Dennis announced last week that Endeavor had continued to perform strongly in the June quarter “exceeding plan with production of 14,982 tonnes of zinc concentrates and 8,978 tonnes of lead concentrates”.
He said the mine was operating at the reduced production rate of 420,000 tonnes per annum under a revised plan which was implemented in November 2008 to drive production costs to a sustainable level in response to weak metal prices.
“The last 12 months have been very difficult for all zinc producers throughout the world, however Endeavor has delivered a very credible performance during this period.
“On all of the key measures of safety, production and cost, the team at Endeavor has achieved a very satisfactory result,” Mr Dennis said.
He said Endeavor’s financial performance continued to improve and, at current metal prices, the mine’s cashflow is positive.
“Notwithstanding this improvement, the mine is still expected to report a significant loss for the full year as a consequence of a higher cost structure and lower metal prices during the first half of the 2008/9 financial year.”
Mr Dennis said Endeavor would continue to operate at the rate of 420,000 tonnes per annum during the current financial year and increase production when metal prices improve.
The company has also been boosted by the signing of a new 30 year lease on its Newcastle Shiploader facility.
Mr Dennis said the new agreement modernises the original lease entered into when the shiploader commenced operations in 1983.
“Historic restrictions limiting the bulk materials which can be handled by the shiploader have been removed, and this will provide CBH with significant scope to increase utilisation of the loader and its associated facilities,” he said.
The shiploader is currently used as an export portal for Endeavor Mine as well as CSA, Peak and Tritton mines.
“CBH considers the new lease to be a vote of confidence in the mining industry by the Newcastle Port Corporation, providing certainty of minerals export capacity at the Port of Newcastle for the next 30 years,” Mr Dennis said.
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