Australia-based miner New Century Resources produced 28,292mt of zinc in the March (Q3), up by 56pc from the prior year quarter. IGO has bought 19pc stake New Century as it plans to ramp up production to reach an annual capacity of 12mn mt.
Production was higher despite wet season events and several load shedding periods due to technical issues at Mount Isa power generator in Queensland. Treatment charges fell as there were major supply cuts during the quarter. The company’s production guidance range was at 31,500-38,500mt until the end of the fiscal year. For the remainder of the year or during Q4, the company is commissioning activities to ramp up to 12mn mt per annum.
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New Century Resources stated that massive disruptions were caused due to COVID-19 pandemic in major zinc producing nations like Canada, Mexico, Peru, South Africa and Argentina.
Australia-based IGO is set to buy 18.4pc stake in New Century Resources by investing AUD27mn ($17.01mn) in Century Zinc mine in Queensland. New Century will also raise approximately AUD51.1mn, which will be used as working capital to progress into the final stage of the mine ramp up.
($1 = AUD 1.58)