Second Quarter 2013 Operations Review - Mineral … Tyssedal production and sales volumes 100% basis...
Transcript of Second Quarter 2013 Operations Review - Mineral … Tyssedal production and sales volumes 100% basis...
Mineral Deposits Limited | ABN 19 064 377 420 | Level 17, 530 Collins Street, Melbourne, Victoria 3000, Australia T:+61 3 9618 2500 | F: +61 3 9621 1460 | E: [email protected] | W: www.mineraldeposits.com.au
Second Quarter 2013 Operations Review
MDL owns 50% of TiZir Limited which owns an ilmenite upgrading facility in Tyssedal, Norway and the Grande Côte Mineral Sands Project in Senegal, West Africa.
Tyssedal Titanium slag production: first half 2013 was 99.3kt, 28% higher than first half 2012, following production of 48.6kt in the second quarter, which was 52% higher than second quarter 2012 and 4% lower than first quarter 2013. The production performance reflected the plant operating at effective capacity during first half 2013, and a one month shutdown of pre‐reduction in second quarter 2012 which curtailed production at that time.
Titanium slag sales: first half 2013 was 80.6kt, 11% higher than first half 2012, with sales of 43.3kt in the second quarter, 49% higher than second quarter 2012 and 16% higher than first quarter 2013.
Titanium slag pricing: during first half 2013 was on average approximately 30% lower than average full‐year 2012 levels, with prices softening through the half.
High purity pig iron (HPPI) sales volumes: first half 2013 was 66.3kt, 27% higher than first half 2012, with sales of 36.6kt in the second quarter, which were 55% higher than second quarter 2012 and 23% higher than first quarter 2013. The increased sales volumes partially reflect the introduction of an intermediate grade product that is accessing a different customer segment.
HPPI pricing: first half 2013 was approximately 20% lower than average full‐year 2012 levels, partially a result of the introduction of the intermediate grade product, with prices softening during the half.
Grande Côte Construction completion: now over 80%.
Structural steel: the previous lack of pre‐fabricated structural steel on‐site, which was curtailing construction works of the wet concentrator plant (WCP) and mineral separation plant (MSP), is no longer an issue. Large quantities of steel are now on‐site which is allowing multiple work fronts to progress with increased productivity.
Work completed or near completed: the dredge is fully constructed and in the start‐up pond; the power station is complete and fully commissioned; the last of the 12 deep water bores (which have taken 18 months to drill) is nearing completion; and the rail and port are on‐track for completion in September/October.
Work to do: the majority of the final construction phase centres on the WCP (which includes the tails densification module) and the MSP, with piping and electricals being the major works to be undertaken.
Schedule: commissioning of the WCP and MSP is scheduled during the March 2014 quarter, which is unchanged from the March 2013 quarterly report.
TiZir
(50% owned by MDL)
EBITDA (unaudited): first half 2013 was US$39.7 million, 21% lower than first half 2012.
Equity injection: the remaining US$50 million of committed equity was injected by MDL and Eramet during the second quarter.
Funding: cash at June‐end was US$47.5 million; a US$50 million working capital facility was finalised during the quarter; and US$45 million of unsecured debt remains to be injected by Eramet – giving US$142.5 million in total.
Outlook Titanium slag sales volumes: approximately 100kt is anticipated in second half 2013, some 25% higher than first half 2013.
HPPI sales volumes: approximately 55kt is anticipated in second half of 2013, compared to 66.3kt in first half 2013.
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Tyssedal production and sales volumes 100% basis 2Q 3Q 4Q 1Q 2Q 1H 1H 2012 2012 2012 2013 2013 2012 2013
Titanium Slag Produced (kt) 32.1 52.8 50.5 50.7 48.6 77.8 99.3Sold (kt) 29.0 35.3 48.8 37.2 43.3 72.8 80.6
High Purity Pig Iron Produced (kt) 18.0 30.0 28.1 28.6 27.1 43.3 55.7Sold (kt) 23.5 19.7 32.7 29.7 36.6 52.1 66.3
Grande Côte construction snapshot
Safety 1.6 million man hours completed during the quarter without an LTI
Dredge Following the launch of the fully‐constructed dredge into the start‐up pond in April, the commissioning of the control systems is now complete. The last of the commissioning now awaits completion of the wet concentrator plant
Water bores & pipeline Last of 12 deep bores nearly complete – after 18 months of drilling
Wet concentrator plant (WCP)
Increased receipt of materials (particularly structural steel) is allowing multiple work fronts to progress with increased productivity
Tails densification module fabrication well underway
Mineral separation plant (MSP)
Large quantities of steel on site has allowed for commencement of nightshift
Piping installation and electricals the major work ahead
Power station Complete and handed over to operations team
Rail Continuing to progress very well and on track for September/October completion
New track from MSP to Méckhe complete; refurbishment of existing track between Méckhe and Thiés complete; and nearing completion of section between Thiés and Dakar
Wagons are in‐country, locomotives are on‐route from USA
Port Approximately 66% complete
Erection of ilmenite storage shed nearing completion
Rail car unloader delivered and installed / radial stackers installed
Dredge in foreground and wet concentrator plant under construction
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Dredge
Wet concentrator plant – surge bin module closest
Wet concentrator plant – spiral module closest
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Wet mill at mineral separation plant
Wet mill and zircon intermediate storage at mineral separation plant
Dry mill at mineral separation plant
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Power station – complete
Rail refurbishment Rail tamping
Locomotive – now en route to Senegal Rail wagon – being unloaded at Dakar port
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Ilmenite storage facility at Dakar port facility
Ilmenite storage facility – cladded Rail car unloader at Dakar port facility
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Corporate At 30 June 2013:
issued shares were 83,538,786;
zero options;
cash was US$19.6 million;
zero debt;
investments:
16% of Teranga Gold Corporation (ASX: TGZ, TSX: TGZ) valued at US$23 million
16% of World Titanium Resources (ASX: WTR) valued at US$12 million
About MDL Mineral Deposits Limited (ASX: MDL) is an Australian based mining company in the business of finding, mining and processing mineral sands resources. MDL owns 50% of TiZir Limited which owns an ilmenite upgrading facility in Tyssedal, Norway and the Grande Côte Mineral Sands Project in Senegal, West Africa. The Tyssedal ilmenite upgrading facility smelts ilmenite to produce a high‐TiO2 titanium slag which is sold to pigment producers and a high purity pig iron which is sold as a valuable co‐product to ductile iron foundries. The facility currently produces approximately 200ktpa of titanium slag and 110ktpa of high‐purity pig iron. Grande Côte, with construction now more than 80% complete, is anticipated to produce on average approximately 85ktpa of zircon and 575ktpa of ilmenite (and small amounts of rutile and leucoxene) when in full production over an expected mine life of at least 20 years. Once Grande Côte reaches expected average production rates, TiZir will be producing approximately 7% of both global zircon and titanium feedstock supply.
Forward Looking Statements Certain information contained in this report, including any information on MDL’s plans or future financial or operating performance and other statements that express management’s expectations or estimates of future performance, constitute forward‐looking statements. Such statements are based on a number of estimates and assumptions that, while considered reasonable by management at the time, are subject to significant business, economic and competitive uncertainties. MDL cautions that such statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of MDL to be materially different from the company’s estimated future results, performance or achievements expressed or implied by those forward‐looking statements. These factors include the inherent risks involved in exploration and development of mineral properties, changes in economic conditions, changes in the worldwide price of zircon, ilmenite and other key inputs, changes in mine plans and other factors, such as project execution delays, many of which are beyond the control of MDL. Nothing in this report should be construed as either an offer to sell or a solicitation to buy or sell MDL securities.
Contact Details Level 17, 530 Collins Street Melbourne, Victoria 3000, Australia T:+61 3 9618 2500 F: +61 3 9621 1460 E: [email protected] W: www.mineraldeposits.com.au For further information please contact: Rick Sharp Managing Director & Chief Executive Officer T: +61 3 9618 2500 | E: [email protected]