Following four months of record gold production at its King of the Hills (KOTH) gold mine, Red 5 has released its June 2023 quarter report.
During the quarter, the KOTH mine produced 61,705 ounces (oz) of gold, a significant increase from the 40,869oz produced in the March quarter.
Red 5’s June quarter sales equalled to 58,960oz, an increase from its March quarter’s 40,907oz. These gold sales resulted in operating cash flows of $50.6 million.
The company achieved the upper end of production and mid-range of cost guidance for the second half of the 2023 financial year, with production of 102,574oz at an AISC of $1837/oz against guidance of 90k-105k oz at AISC of $1750–1950/oz.
On top of successful operations, the company saw an improvement in safety, seeing no recordable injuries.
An ongoing board renewal process also began in the June quarter, with Russell Clark being appointed as chair and Peter Johnston being appointed as a non-executive director.
As of June 30, Red 5’s net debt position improved, reducing by $44.5 million to $81.9 million, its cash and bullion being $45.9 million, $22.0 million of bank debt being repaid, with $127.8 million outstanding on the KOTH debt facility.
“The June quarter has been a watershed period for Red 5, with the KOTH mine delivering strong results for the company, both operationally and financially and with a greatly improved safety performance,” Red 5 managing director Mark Williams said.
Red 5’s FY2024 production guidance has been set to 195k–215k ounces at AISC of $1850–$2100/oz.
“Our clear focus for the year ahead is to continue delivering safe, consistent and profitable ounces from the KOTH processing hub. This will, in turn, provide us with a platform to execute our longer-term growth strategy,” Williams said.