Red 5 has released its September 2023 quarterly report, where it celebrated its 55,009-ounce gold production from the King of the Hills (KOTH) project.
This milestone has positioned the gold miner to deliver the top end of its 2023–24 financial year (FY24) production guidance of 195,000–215,000 ounces, with an all-in sustaining cost (AISC) of $1850–$2100 per ounce (oz) and growth capital of $40–$46 million.
Red 5 produced 55,009 ounces of gold at an AISC of $1696/oz, slightly down from the June quarter’s 61,705 ounces. During the period, gold sales equalled 54,383 ounces leading to operating cash flows of $43.8 million.
“This (the $43.8 million) has enabled us to further reduce our debt, with $15 million of debt repayments completed during the quarter, including $10.8 million of accelerated debt repayments. The company’s net debt position is $68.2 million (as of) September 30,” Red 5 managing director Mark Williams said.
The company also updated its mineral resource and ore reserve statement, where its group mineral resource estimate equals 6.2 million ounces (Moz) of contained gold and its ore reserve estimate totals 2.6Moz of contained gold.
The resource confidence in the KOTH project continues to increase, with a 185 per cent increase in open pit measured resources and a 102 per cent increase in underground indicated resources.
“The KOTH mill continues to perform well, operating at an annualised throughput rate of up to 5.5Mtpa (million tonnes per annum) for extended periods during the quarter, well above its nameplate capacity of 4Mtpa,” Williams said.
On top of successful operations, the company saw only one recordable injury during the quarter, with 12-month total recordable injury frequency rate (TRIFR) reducing to 7.61 from 9.01.
The company’s board renewal process continued throughout the quarter, with several new appointments.
“We were pleased to further expand our executive team during the quarter with the appointment of David Coyne as chief financial officer and joint company secretary and Lisa Wynne as joint company secretary,” Williams said.
“Following the appointment of Russell Clark as chairman and Peter Johnston as non-executive director in July, long-serving non-executive directors Colin Loosemore and Steve Tombs have advised they will be stepping down from the board effective from November 6, the date of the annual general meeting.
“This will leave the board with five directors, which we believe represents a good fit for the company given its current size and status and concludes the board renewal process.”