QUARTERLY HIGHLIGHTS
Mineral
Resources Limited (ASX: MIN, MRL) completed a debut US$700 million 8.125%
8-year Senior Unsecured Notes Offering (ASX: 23/04/19). MRL has used the
net cash proceeds from the offering to refinance certain of its existing
credit facilities and will use the remainder for general corporate
purposes, including capital expenditures.
Iron
ore shipments totalled 3.3 million tonnes (Mt) in Q4 FY19, in line with
the previous quarter, and up 49% on the prior corresponding period in
FY18.
Koolyanobbing
was in full production during the quarter, operating at its target
annualised run rate of 6Mtpa of iron ore production. Additional road train
haulage units were obtained and a fourth rail consist was brought online
during the quarter, with plans to increase production to 7.5Mtpa by Q1
FY20.
Spodumene
concentrate production from the Mt Marion Lithium Project in Q4 FY19 was
15% less than the previous quarter, however the proportion of high-grade
6% spodumene concentrate product increased to 69% compared to 66% in the
previous quarter.
Construction
of the Wodgina Lithium Project’s three-stage 750,000 dry tonne per annum
spodumene concentrate plant and associated non-process infrastructure
progressed during the quarter. Train one is complete with the current
focus on optimising lithium recoveries, train two commissioning is
underway and construction of train three is progressing. First ore is
expected in Q1 FY20. The Wodgina aerodrome runway is complete with the
first charter flight planned for Q2 FY20.
The
binding Asset Sale and Share Subscription Agreement (Sale Agreement)
between MRL and Albemarle Corporation (NYSE: ALB, Albemarle) regarding the
sale of a 50% interest in the Wodgina Lithium Project continues to be
subject to approvals from the relevant regulatory authorities in Australia
and China and third party consents. Completion of the transaction is still
expected to occur during the 2019 calendar year (CY19).
Construction
of the Mt Marion All-in 6% Concentrate Upgrade Project (Ai6) is complete.
A study is presently underway to optimise production levels while managing
water and energy demands. Until the study is complete (expected Q1 FY20),
Mt Marion will continue to produce both 6% and 4% spodumene concentrate.
A
RC drilling program was completed during the quarter at Mt Marion. The
program included approximately 6,200m of RC drilling focused on
exploration and resource extension holes and has delivered increases of
indicated and inferred resources (refer Mt Marion Project Resource Update
below).
T1: PRODUCTION SUMMARY
'000
WMTs
|
Q4
FY19
|
Q3
FY19
|
Q4
FY18
|
YTD
FY19
|
PRODUCED
|
SHIPPED
|
PRODUCED
|
SHIPPED
|
PRODUCED
|
SHIPPED
|
PRODUCED
|
SHIPPED
|
IRON
ORE
|
|
|
|
|
|
|
|
|
Iron
Valley
|
1136
|
1945
|
1368
|
1788
|
1821
|
1597
|
6133
|
7406
|
Koolyanobbing
|
1398
|
1346
|
1303
|
1518
|
-
|
-
|
3353
|
3156
|
Carina & J4
|
-
|
-
|
-
|
-
|
-282
|
-618
|
-
|
-
|
TOTAL
IRON ORE
|
2534
|
3291
|
2671
|
3307
|
2103
|
2215
|
9486
|
10562
|
Related
Link: Official
Document
|