Category: Companies

Images: Port Waratah Coal Services. BY ELIZABETH FABRI PORT Waratah Coal Services exports declined marginally in the 2017 calendar year, however there have been other issues under spotlight; a big question mark over the future of its long-running Carrington operation – and more recently – scrapped plans for its Terminal 4 project. In November, Port Waratah Coal Services (PWCS) was blindsided by a NSW Department of Planning draft report which stated it would explore options to move its Carrington coal terminal to another location. Carrington and Kooragang are PWCS’s bread and butter, and two of the three coal terminals that make up the Port of Newcastle (the third being operated by Newcastle Coal Infrastructure Group). PWCS – the final link…

All images: Independence Group. BY REUBEN ADAMS THE March quarter was a mixed bag for Independence Group, but the miner’s medium to long term fundamentals are sound. The flagship Nova operation continues to ramp up and generate good cash flow, while a $50 million exploration program and downstream processing studies could deliver massive cash flow generation in the years to come. Independence Group (IGO) is transitioning into a cash-generative business, as growing free cash flow from its operations – especially Nova – results in an ever-shrinking debt pile. Building cash reserves is an important part of the IGO strategy. It gives the company flexibility for potential acquisitions, or development options should a $30m exploration program on its highly prospective 14,000sqkm…

All images: Heron Resources.  BY REUBEN ADAMS HERON Resources’ Woodlawn zinc-copper development is on track to begin commissioning in late 2018. Once in production, the high-grade, long-life Woodlawn will be well placed to participate in a zinc market facing a significant supply shortfall. Reuben Adams spoke with Heron Resources chief executive Wayne Taylor. It must be nice to see Woodlawn in development.   It is – it has been a while coming. We got to a place where we had all the studies done and, as a lot of companies do, found the major hurdle was getting the money to make it happen on the ground. We got that done in September last year, so that was a significant step…

Centennial fuels about 40 per cent of NSW’s coal-fired electricity. All Images: Centennial Coal. BY CAMERON DRUMMOND IF 2017 was a year of design for Centennial Coal, then 2018 is the year of implementation. The company is tracking well in enhancing its social licence to operate, integrating productivity improvements and new mining systems, operational excellence and production growth, and automation and digital transformation. Owned by Thai-based Banpu, Centennial Coal is one of the largest underground thermal coal producers in NSW, employing more than 1400 personnel across five operating coal mines producing more than 12 million tonnes per annum (mtpa). It fuels 40 per cent of the State’s coal-fired electricity and exports about 40 per cent of production to power stations…

BY ELIZABETH FABRI ALL signs indicate Newmont Mining could dethrone Barrick Gold as the world’s largest gold producer this year. Newmont’s Australian division has been a key player in the race, kicking goals across its three operations – KCGM, Tanami, and Boddington. Back in 2007, Newmont’s vice-chairman at the time, Pierre Lassonde, told reporters at the Kalgoorlie Diggers and Dealers conference that he hoped Newmont would overtake Barrick Gold (its joint venture partner in KCGM) in the gold space. In 2016, Newmont president and chief executive Gary Goldberg told Bloomberg this wasn’t an area of focus; instead the value that is added to projects and growing margins. “We’re not about getting bigger, it’s about growing margins,” Mr Goldberg said. However,…

Doray managing director Leigh Junk. Images: Doray Minerals. BY CAMERON DRUMMOND A YEAR on from taking the reins at Doray Minerals, managing director Leigh Junk has overseen a well-executed turnaround strategy, with the company shifting its focus to the ramp up of its new Deflector operation and extending its resource base. Q: What changes have you made at Doray since taking over as managing director?   When I started as managing director a little over a year ago, the company had almost $70 million in debt and two operations that were not performing to expectation. The growth and drive for the company in the short term had to come from its operations. For the company to be successful, Deflector had…

All images: Evolution Mining. BY ELIZABETH FABRI WITH an absence of distressed sellers in the gold industry, Evolution is putting the brakes on acquisitions – for now – instead focusing on organic growth and achieving debt free status. If gold and copper prices remain where they are today, Evolution Mining could be debt free by the end of the calendar year, according to executive chairman Jake Klein. In the last two and a half years the miner has slashed more than $687 million in debt from its balance sheet and returned $190 million to shareholders in dividends. What’s more, group All-In Sustaining Costs (AISC) were cut by 20 per cent to $784 per ounce in the last 12 months, making Evolution…

All images: Iluka Resources. MINERALS sands miner Iluka has been a bit of a sleeper in the resources rally. Minimal debt, great assets and excellent management – coupled with the best market conditions in five years – has Iluka well placed for a year of delivery at its Sierra Rutile, Jacinth-Ambrosia and Cataby projects. Reuben Adams spoke with Iluka Resources chief financial officer and head of Strategy and Planning Doug Warden. Q. During Iluka’s 2017 full year results conference call chief executive Tom O’Leary said “we’re not looking to push prices so hard that we invoke substitution and a shrinking of the overall global demand profile, as happened earlier in the decade”. How will you ensure that price increases are sustainable,…

All images: Newmont. BY ELIZABETH FABRI FRESH from completing a $US120 million expansion at its Tanami operation, Newmont is spending big on a new power project that will see Tanami shift to natural gas from a current reliance on diesel fuel. Newmont has a lot to be proud of at its Tanami gold mine in the Northern Territory. Since 2012, Tanami has more than doubled gold production and cut costs by two thirds. In August, the miner completed a mine expansion to increase production by 80,000 ounces per year, lower all-in sustaining costs to between $US700/oz and $US750/oz, and add a further three years to mine life. Newmont’s Australia production was now expected to reach between 1.5 million ounces and…

All images: Hillgrove Resources. BY ELIZABETH FABRI AFTER a near death experience in 2016, Hillgrove Resources is on the rise with company finances looking healthier and a number of growth opportunities on the horizon. Two years ago, Hillgrove Resources was in financial distress as it struggled to overcome cash shortfalls during a significant downturn in the copper market and underperformance at its flagship Kanmantoo mine. During the $70 million cutback of Kanmantoo the company’s financial position left it with no choice but to restructure costs, which included a 10 per cent wage deferral, and renegotiated contract and creditor arrangements. Hillgrove Resources Kanmantoo general manager Lachlan Wallace, who headed up the mine during this time, said 2016 was a challenging year. “We…

BY CAMERON DRUMMOND BEING an exploration company has many hurdles, but the payoffs can be huge with a highly motivated and experienced team at the helm. This, according to Cervantes Corporation managing director Marcus Flis, is the philosophy behind his company’s interest in the historic Payne’s Find gold field. Q: What is your professional history? The big end of town was my training ground. Multi-commodity exploration with CRA Exploration. Membership of “task forces” was a highlight of that experience. Later, work with Newmont Australia gave me very specific experience in various styles of gold deposits. I was called back by Rio Tinto to head up a task force in the Hamersley Basin, following which I was appointed Global Director, New…