Greatland’s revenue climbs despite sales dip
Greatland Resources ended the December quarter with more than half a million in revenue despite a decline in sales as higher commodity prices boosted Telfer’s earnings.
This quarter completed Greatland’s first year of ownership in the gold and copper mine; Although gold sales fell roughly 12 percent to 72,212 ounces, its revenue of $507 million was up 6.5 percent from the September quarter.
Speaking to investors on Wednesday, Greatland CFO Monique Connolly said the weak sales reflected shipping timing rather than the miner’s performance.
“This was in the ordinary course of business, so sales ounces and revenues will be recognized in January…for ounces produced in the December quarter,” he explained.
Greatland’s average realized gold price rose to $6,301 per ounce between September and December, from $5,277 in the previous quarter.
The company’s overall sustainability costs remained at $2,196 per ounce, resulting in a gross margin of approximately 80 percent.
Copper’s performance appears to have provided further support for the WA miner, with base metal sales rising to 3,301 tonnes at a higher average price of $14,652 per tonne, compared to $12,552 per tonne in the previous quarter.
The result translated to operating cash flow of $406 million, leaving Greatland with $948 million in cash at the end of the quarter and no debt until 2026.
Managing director Shaun Day said the company was fully exposed to the rise in the gold price but maintained downside protection through gold put options.
“We continue to focus on cost control while participating in strong gold market pricing,” he said in a statement Wednesday.
Greatland’s production totaled 86,000 ounces of gold and over 3,500 tonnes of copper in the quarter.
Following its first-half performance, management said the miner’s full-year production is expected to trend toward the upper end of guidance of 260,000 to 310,000 ounces, while full-year costs are expected to trend toward the lower end of the $2,400 to $2,800 per ounce range.
Capital investment in Telfer continued; $61.2 million spent on waste expansion, open pit pre-stripping, underground development and fleet renewal during the quarter.
The company has also completed more than 54,000 meters of drilling as part of a wider effort to extend mine life and increase confidence in future production.
“We think this will start to map out the story to give the market more confidence in life extensions in Telfer,” Mr Day continued.
On the development front, Greatland has approved the Havieron feasibility study, which envisions a second gold and copper center supported by Telfer’s infrastructure.
This study reveals that Havieron’s mine production is approximately four million gold equivalent ounces.
Mr Day said the company was still working on a resource update in the March quarter, which would also add to recent drilling at Telfer’s open pit and underground, including the West Dome area.
Management has signaled the potential to expand beyond current mine plans, with more details this fiscal year.
