March 2002 Quarterly Report
1 January - 31 March 2002
26 April 2002
- Mine production increased to approximately 16,000oz (sales 13,000oz
excluding gemstone) gold and 300,000t coal. On track for further growth,
particularly from coal.
- Continued emphasis on expansion with mine development of 2500m gold and
- Ventilation shaft constructed at Gympie for further exploratory development
capacity. Current coal priority is to complete panel SL2 and start SL3 during
the June quarter. SL3 contains over 1.7M recoverable tonnes worth over $120M in
potential revenue terms, is the biggest production zone ever developed in the
Greta Seam and is capable of extraction in 02-03.
- Current gold priorities are to develop more ore for the new Lewis Mine and
to continue mill expansion from 200,000 tpa capacity at 31/12/01 to current
300,000 tpa to 400,000 tpa later this year.
- All operating sites running at industry standard safety and environmental
- Search for a major new gold system currently focused on the Partridge
Graben in the Southern Gympie Goldfield. Best drill intercept was 4.9 m at
29 g/t 150 m below ground and 500 m east of the new decline tunnel. Strike
appears parallel to the Inglewood Lode has been established over 800m. High
grade Gympie Veins have been drill-intercepted in its vicinity but geometry and
grade have yet to be established. Drilling continues.
- Exploration for additional resources and reserves for the new Lewis Mine
yielded disappointment in the Inglewood Lode adjacent to the first production
Zone N3 and yielded encouragement in stockwork zones, with development having
commenced on Stockwork 7.
- Successfully established new coal customers in North and South America,
Korea and Japan while continuing to serve long-established Japanese customers.
Market outlook for metallurgical (coking) coal is strong with market
diversification in Europe, South America and India showing promise.
- Successfully established new products in metallurgical market niches based
on Southland Coal’s quality attributes of extremely low ash, high fluidity
and high calorific value.
- The prices for all group products appear to be firming. The Company’s
emphasis on value-adding is enhancing the prospects for growth of profit margin
to coincide with the current growth of production and sales volumes. The Gympie
Gold ® Gemstone business met current sales target.
- Cash and gold bullion was $7M. Finance facilities are in the process of
- Marketing of the proposed Southern Gympie Goldfield Joint Venture awaits the
requisite approvals from the relevant Federal and State Departments.
- Gold hedging has reduced from 45% of stated resources 18 months ago to
around 30% currently and will reduce further. Currency hedging will be
extinguished by this June quarter’s coal production and will be
replenished to convert into $A the coal sales up to one year ahead.
Full details can be obtained in the following downloadable files:
March Quarterly Report [ pdf ]