cash flow positive

Just out

Surda Copper Operation – Update
Operation Now Cash Positive as Production Ramp-up Continues
India Resources Limited (ASX: IRL) is pleased to report that the ramp-up of
copper concentrate production from the Surda Copper Mine in India has passed a
significant milestone with the operation reaching an operating cash flow positive
production level.
In the last 30 days, the operation has processed 36,665 tonnes of ore at an average
grade of 0.85% copper, resulting in the production of over 290 tonnes of metalin-
concentrate for delivery to Hindustan Copper Limited’s (HCL’s) nearby
smelter. This level of monthly production is significantly above the cash flow
break-even level for the operation. Production is planned to increase further to a
rate of at least 37,500 tonnes per month (450,000 tonnes annually).
Concentrate grade and recovery have dipped slightly to 22.4% Cu and 93.2%
respectively during this period due to commissioning of the new Metso RCS-10
flotation cells that were recently installed at the Mosaboni concentrator plant.
However, both key metrics should improve after the Metso flotation system is
fully commissioned.
Grade (0.9%) is expected to continue to track slightly below budget (1%) until
several new mining areas are opened up early next year. Extra tonnages are being
targeted over the next few months to achieve the planned metal-in-concentrate
production (4,500 tonnes annually or 375 tonnes monthly).
The Surda Operation delivers copper concentrate to HCL under a fixed price
contract. The pricing arrangement is not affected by the recent falls in the copper
price and is very competitive compared to HCL’s other supply for the smelter
sourced from overseas or interstate.
The Surda Mine, located in Jharkhand State, is India Resources’ first mine
development in India through its alliance with HCL. The Company has been in
discussion with HCL on the possibility of opening up several other copper mines
located in the Singhbhum Copper Belt.
EOIN ROTHERY
Managing Director