Ann: ACB: Wiluna Cobalt Nickel Project Farm-in & JV Interest, page-2

Blackham Resources Limited (“Blackham” reports its financial results for the financial year ended 30 June 2018.

Summary financial results:
FY2018 ($’000) FY2017 ($’000) Change (%) Revenue from gold & silver sales 118,252 47,331 150% Earnings before interest, tax, depreciation and amortisation 1,962 9,391 -79%
Total comprehensive loss for the year, net of tax (20,027) (6,844) -193%
Net cash flows from operating activities 6,235 24,675 -75%
Gold production (ounces) 70,565 39,413 79% Gold sales price achieved (A$/oz) 1,654 1,591 4%
All-in sustaining cost (A$/oz) 1,629 1,875 -13%

EXPLANATION OF RESULTS
 The Company recorded a loss for the year ended 30 June 2018 of $20.0 million. $14.4m of the loss was incurred in the first half of the year which was mostly impacted by low gold production at the Matilda‐Wiluna Gold Operation, where production and mill feed head grade was hampered by 43% of mill feed being sourced from low grade stockpiles.
 The second half of the year saw a 31% increase in production on the previous half. This was driven by lower open pit mining strip ratios, higher mill grade and continuous improvements made by the processing team to the plant. Mill throughput improved in each successive quarter of FY18, with record throughput achieved in the Jun’18 quarter (535kt milled).
 Operationally, the Company had gross profits from operations of $4.8m (before non‐cash depreciation and amortisation charges), $5.6m of which came from the second half of the year, completely turning around the first half’s performance.
 Cash flows from operating activities were A$6.2m, of which A$8.3m came from the six months ending 30 June 2018.
 Production guidance for FY19 is 77k‐89koz @ an AISC of A$1,250‐$1,450/oz.