Improved gold prices deliver great results at Henty

The Henty gold mine, in Tasmania, is expected to deliver A$22-million more than initially thought to Unity Mining's bottom line during the financial year ended June. Unity MD Andrew McIlwain said on Friday that over the last 12 months, the company had successfully executed the operational plan for the mine, which coupled with the improved realised gold price, was expected to generate significant returns during the 2015 financial year. Production during the financial year would exceed 50 000 oz, and a further 10 000 oz would be poured as production at Henty wound down towards the end of the 2015 calendar year.

“As can be appreciated, when managing an asset in the transitional phase at the end of its production life, there is always potential variability in results. Henty is currently scheduled to cease production in November 2015, and I am confident we will seek to extract all of the value available from Henty while the asset transitions back to a near-term production development asset,” McIlwain said. Unity has been working to reduce operating costs at the Henty mine, with some A$4-million removed over the last year through a reduction in headcount and remunerations, and a focus on operating costs.

Further cost reductions would be pursued in the form of reduced office space and rental costs, as well as ensuring Henty’s operating costs were further reduced where possible, as production reduced. McIlwain said that Unity was also considering a revamp of its long-term executive incentive scheme as part of recalibrating the mix of remuneration.

Meanwhile, Unity was also considering alternatives for its Dargues gold mine, with chairperson Clive Jones saying that the company was investigating all avenues to generate value from the asset. “Nothing is off the table regarding accelerating value for shareholders from the Dargues project.

We are in a position to make some clear decisions regarding the most appropriate manner to take the development of the asset forward. Unlocking value in the near to medium term is a primary goal for the company.” While Unity was progressing the planning modification of the Dargues mine through the New South Wales regulatory process, the company was also assessing a range of strategic alternatives and was in discussions with a number of parties on a variety of ways to maximise value.