[ATTACH] Highlights Safety – No lost time injuries (“LTI”)...

Highlights

Safety – No lost time injuries (“LTI” recorded during the quarter. Cumulative Total Reportable Injury Frequency Rate (“TRIFR” decreased to 3.02 per million hours.

Mine Production – 143 kt of coal mined and delivered to port. 2019 coal mining volume expected to be between 650 and 700kt. On June 2 TIG mined its one millionth tonne, a significant milestone given the recent launch of mining operations.

Sales guidance – 2019 sales guidance was updated to 650 to 700kt.

Start of the shipping season – Loading commenced on June 5, 2 weeks earlier than in 2018. 45 kt of thermal and 41 kt of coking coal loaded at the end of the quarter, of which 45kt thermal coal was shipped.

Doubling of port capacity – Construction in China and delivery to Beringovsky of two new 500t capacity barges was completed in July. An additional two used 500t barges were also acquired. 3 of these barges are at site working as of the date of this report.

Compliance and licencing – Mining licence was granted over the Zvonkoye licence area within the Amaam North deposit.

Investments & procurement – new mining and transhipment equipment, amounting to US$10m was received in Beringovsky and deployed in operations

Community relations – Working group including representatives of TIG and Association of Indigenous People of Chukotka was established and started selecting indigenous community projects to be supported by the Company for the benefit of local population.




Coal Sales and Marketing

As of the date of the report the total volume of shipped coal so far during the season amounted to 245Kt. The focus over the remainder of the shipping season is to maximise loading to optimise coal sales and match availability of production. With the arrival of three 500t barges in H1 July, and the fourth 500t barge expected to be in operation in early August, average daily loading capacity will increase up to 12kt. Matching sales and vessel arrivals to production and loading availability will be a key outcome of TIG team’s efforts over the next three months.


Coal Outlook

The coking coal market remains strong, with a marginal undersupply of high-quality coking coal driving up value in use of all coking coals.
In thermal coal markets, expanded production and muted demand is causing a build-up of coal inventories in key production basins. This is borne out by spot prices for thermal coal for both the Newcastle and Vostochny 6,000 kcal/kg NAR and high ash 5,500 kcal/kg NAR falling sharply. Newcastle 6000 NAR and 5500 NAR coals are assessed at $70/t and $52/t respectively, down from $92/t and $57/t three months ago. High-ash prices were in the mid $60s/t in October last year, when they started to come under pressure from Chinese import curbs. Thermal prices for all grades have been sliding since August 2018, with a price drop for the headline Newc index falling by approximately 40% over this period.
There is relatively strong demand for TIG SSCC - both standard 9.5% ash and 12% ash products. The 9.5% ash SSCC being primarily sold into Japan, while the 12% ash SSCC is seeing demand from China and Korea. In terms of thermal coal, production this year has been mostly of higher ash material with CV around 5500 kcal/kg NAR. This coal has been sold into China so far this season, but with annual import quotas being imposed on some Chinese ports already this year, efforts are being made to diversify sales to other countries such as Vietnam.
TIG projected 2019 revenue was updated to reflect the changed market conditions.

Capital investments

Capital investments during the June quarter included:

2 x new 500t barges for transshipment operations;
2 x used 500t barges for transshipment operations;
1 x Komatsu 475 bulldozer for overburden removal;
3 x Komatsu 90t dump trucks for waste and coal removal;
6 x Scania trucks for coal haulage;
1 x Komatsu 825 grader for road maintenance;
1 x Vibratory rolling compactor for road construction and maintenance;
2 x Liebherr K566 front-end loaders for port operations;
1 x Liebherr crane;
1 x Komatsu D155A bulldozer

Further ongoing investment was made in coal testing and project design works for the coal handling and processing plant during the first half of 2019, along with additional project design works on the pit to port road and the port facilities, both in preparation for upgrades and enhancements.

thats going to help...


Corporate
On 14 May, TIG’s Annual General Meeting was held in Melbourne, Australia. All resolutions put to the shareholders, including the reappointment of Messrs Gray and Wiggill as directors of the TIG Board were passed. During that week there were a number of positive meetings held with a broad range of financial and coal market participants which, it is believed, will lay the foundation for further improving the awareness and recognition of TIG’s achievements in the future.

explains the arrival of gizard

Stakeholder relations
TIG has continued to work with all local stakeholders to ensure that our operations provide a basis for ongoing sustainable development. In the environment space, TIG continues to work with both the local indigenous community, as well as regulators in accordance with TIG’s policies and procedures to ensure that our mining, haulage, storage and loading activities are undertaken in a manner which leaves a minimal impact on the environment in which we operate. This includes the performance of ongoing base studies for future monitoring and comparison, the implementation of waste management processes to ensure the by-product of the production process is appropriately stored, recycled or managed as the case requires.


all up a great report imho