Positive outlook for Endeavor with cash flow generated
Wednesday October 14, 2009
Cobar’s Endeavor Mine has generated a positive cash flow for the September quarter in a significant turnaround on previous results this year.
The mine generated a notional cash flow
of $3.9million for the quarter, in stark
contrast to the operating losses sustained in 2008-09.
CBH Resources released its quarterly
report last week saying Endeavor Mine has delivered a strong quarter, performing ahead of plan.
“The Endeavor Mine has extended its
excellent performance run through the
September quarter and has again exceeded budget with production of 15,250 tonnes of zinc concentrates and 8,400 tonnes of lead concentrates,” CBH managing director Stephen Dennis said in the report.
“The mine is currently operating above plan at an effective annualised production rate of 462,000 tonnes, largely because of the excellent productivity rates being achieved by the smaller workforce of 120.”
Mr Dennis said zinc recoveries at the mine have increased over the previous quarter by more than two per cent following a change in operating strategy to improve recoveries with fine grained complex ores.
“Planning is well advanced to return the mine to 850,000 tonnes per annum in mid 2010 at the current mining grades.
“The paste plant is expected to be recommissioned in December ahead of the planned ramp up in production,” Mr Dennis said.
He said the company will also begin a new exploration program in the December quarter, focusing on defining new resources within a 20km radius of Endeavor Mine.
Mr Dennis said the outlook for CBH Resources is continuing to improve.
“The company will continue to pursue a simplified corporate strategy which focuses on the gradual and sustainable ramp up of production at Endeavor to a higher level, and the development of the Rasp Mine at Broken Hill,” Mr Dennis said.
Next story | News home
.jpg)