Wiluna exceeds revised guidance

Wiluna exceeds revised guidance

Republished from MiningNews.net
Full-year production from the company’s namesake project in Western Australia landed at 51,552 ounces at all-in sustaining costs of A$1794/oz.
That’s a beat on two fronts, with the company being forced to revise guidance down in April to 51,000oz at $2000/oz due to mill failures, but production was still well below its initial forecasts of 62,000oz.
The good news is its output cost 8% less than original AISC forecasts of $1950/oz.
Output for the June quarter was 12,524oz at $1371/oz, with sales of 12,782oz sold at an average $2651/oz.
The result for the full year was a gross profit that improved 2000% to $21 million after what was a marginally profitable financial 2020.
Cash inflows were $34 million, an improvement of 143%.
Jerkovic praised the team for delivering improvements and helping sustain the balance sheet during period of aggressive development profile as the company invested heavily to shift focus from oxide to sulphide ore.
“We remain on track to becoming a significant gold producer in a tier one jurisdiction over the next three years,” he said.
The transition is about to kick into a new phase, with stage one development almost completed, and the first new ore from high-grade mining areas such as the Happy Jack and East Lode zones to begin following soon.
The concentrator is about 65% complete. It aims to feed ore into the new plant from October, and support a ramp up to 120,000ozpa.
Resource and reserve drilling to support the stage two feasibility study is almost complete, with the study due for release early next year.
Stage two’s minimum target is 250,000ozpa.
Cash and bullion at year’s end were up 436% year-on-year to $56 million.
The company has 162,500oz hedged at $2427/oz, primarily denominated in US$ to support its $40 million debts to Mercuria.
The stock has traded between 86.5c and $2.30 over the past year, and were steady at 99.5c today, valuing it at $155 million.

Read the article on MiningNews.Net

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