Gold and Lithium Operations Show Resilience in Australian Mining Industry
Australia’s mining industry has seen positive results in gold and lithium operations, with three of the country’s prominent miners releasing their March quarterly production reports.
Westgold Resources
Westgold Resources‘ (ASX: WGX) Q3 production highlights saw 60,512oz of gold produced at an all-in sustaining cost (AISC) of $2094 per oz, and the company is confident in exceeding its 2023 financial year production guidance.
Westgold Resources managing director Wayne Bramwell says “our team sees additional opportunities in every one of our mines and the business functions that support them, with a view to growth, are committed to building a safe, profitable and sustainable business into (the 2024 financial year)”.
Gold Road Resources
Gold Road Resources‘ (ASX: GOR) Gruyere mine produced 82,604oz of gold on a 100% basis at an AISC of $1399 per attributable oz, and the mine celebrated the first 1moz of production since it first poured gold in June 2019.
Gold Road Resources outlined its three-year production outlook during the quarter, projecting Gruyere to produce between 335,000-375,000ozpa.
Gold Road Resources chief executive Duncan Gibbs says “our ongoing focus on efficiency and productivity improvements, coupled with a strong focus on people and culture, are reflected in the solid production performance of Gruyere for the quarter”.
Core Lithium
Core Lithium (ASX: CXO) saw operational highlights for the March quarter, with the construction of the dense media separation plant at the Finniss lithium project being completed.
The company also produced its first spodumene concentrate, with a maiden 3500t spodumene concentrate parcel produced and transported to the Darwin port and then shipped to Yahua.
Core Lithium chief executive Gareth Manderson says “the Core team is now focused on ramping up and establishing integrated mining and processing operations”.
Mr. Manderson also noted that commercial agreements for the first concentrate production with Yahua assisted the company’s cash flow management.
The Australian mining industry has always been a significant contributor to the country’s economy.
However, in recent years, the industry has faced numerous challenges, including fluctuations in commodity prices, regulatory changes, and labour shortages.
The COVID-19 pandemic has further exacerbated these challenges, forcing the industry to navigate unprecedented disruptions to its operations.
The positive results in gold and lithium operations offer a glimmer of hope for the industry.
Despite the challenges, these companies have managed to achieve significant production and cost efficiencies, showcasing the resilience and adaptability of the mining industry.
These results suggest that with the right strategies in place, the industry can bounce back from adversity.
