Simberi gold production was up 25% on Q1 at 12,969 ounces despite the loss of six days of production at the end of Q2 due to an unplanned SAG mill stoppage.
Productivity of the trucking fleet increased over the December quarter and enabled the building of a ROM stockpile of ~70,000 tonnes at 1.2 g/t, containing ~2,700 ounces. Further fleet additions are due for arrival in Q3 to replace ageing units and improve reliability of mine performance, including the introduction of two of the larger Volvo A60H trucks as part of the truck trial for the Sulphide Expansion.
Mined grade is anticipated to further improve in Q3, and again in Q4, as the mine schedule accesses a higher proportion of tonnes from the higher-grade zones in Sorowar. The Company continues to anticipate achieving production guidance supported by improvements to the processing plant reliability through shutdown work in H1, the arrival of new fleet and the scheduled access to higher grade feed in H2 FY24.
The AISC was lower than Q1 at $3,889 per ounce, but above our internal expectations for Q2 primarily driven by lower gold production due to the unplanned plant shutdown at the end of the quarter. An estimated 2,400 ounces of production were delayed into Q3 because of the unplanned shutdown. Simberi is largely a fixed cost mine and accordingly AISC is anticipated to fall with the higher anticipated production in H2 FY24.
SBM Price at posting:
15.0¢ Sentiment: Buy Disclosure: Held
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