Focus Minerals Ltd. reported record ore processing at its Three Mile Hill plant and significant progress on the Bonnie Vale Underground Mine during the December 2024 quarter, supported by a solid cash position of $16.5 million.
- Record 351,553 tonnes milled at Three Mile Hill plant
- 9,975 ounces of gold sold at A$4,132/oz average price
- Bonnie Vale Underground Mine development underway with Barminco partnership
- Laverton exploration drilling completed with 35 holes
- Strong cash balance of $16.5 million at quarter-end
Operational Highlights at Coolgardie
Focus Minerals Ltd. (ASX: FML) delivered a robust December 2024 quarter, marked by record throughput at its Three Mile Hill (TMH) processing plant. The mill processed 351,553 tonnes of ore, exceeding expectations given the plant’s 1.2 million tonnes per annum capacity. This included 286,940 tonnes of the company’s own ore and 64,613 tonnes of toll treatment ore, demonstrating efficient utilisation of milling capacity while stockpiling ore from Greenfields open pit.
The Greenfields open pit contributed 261,444 tonnes of ore, supplemented by low-grade stockpiles from satellite deposits. The average grade of the company’s ore was 1.04 grams per tonne with a recovery rate of 92.3%, culminating in 9,596 ounces of gold poured and shipped during the quarter. Gold sales totalled 9,975 ounces at an average realised price of A$4,132 per ounce, alongside 654 ounces of silver credits, underpinning a strong revenue stream.
Advancing Bonnie Vale Underground Mine
Significant progress was made at the Bonnie Vale Underground Mine, with Focus entering a mining services agreement with Barminco to provide underground development, production, and mining support services. Site establishment and infrastructure are nearing completion, and underground development commenced with the first portal and decline cuttings. By quarter-end, 23 meters of decline had been completed, marking a critical milestone in transitioning from open pit to underground mining operations.
Exploration and Resource Development
While no exploration drilling occurred at Coolgardie during the quarter, preparatory work such as water bores and pilot holes was completed to support Bonnie Vale’s development. Meanwhile, the Laverton Gold Project saw active exploration with 26 reverse circulation (RC) holes totaling 3,288 meters and 9 diamond drill tails for 843 meters completed. These efforts aim to expand mineral resources and support future production growth.
Financial Position and Corporate Activity
Focus Minerals maintained a strong financial position with unrestricted cash of $16.499 million as at 31 December 2024. The company generated approximately $41.254 million from gold and silver sales during the quarter. Exploration expenditure was $1.963 million, reflecting ongoing commitment to resource development. The company also reported payments of $223,000 to related parties, including executive and non-executive directors.
On the financing front, Focus has access to $187 million in facilities, with $171 million drawn, including loans from Shandong Gold Group and its affiliates. The company’s prudent financial management and strategic partnerships position it well to fund ongoing operations and development projects.
Outlook
Focus Minerals is poised to build on its operational momentum with the Bonnie Vale Underground Mine development progressing and exploration programs planned for 2025. The successful toll milling arrangement at TMH ensures continuous plant utilisation while stockpiling ore, balancing production and cash flow. Investors will be watching closely for updates on underground mining progress and exploration results that could further enhance the company’s resource base.
Bottom Line?
Focus Minerals’ record milling and underground development progress set the stage for a pivotal 2025 as it balances production growth with disciplined financial management.
Questions in the middle?
- How will the Bonnie Vale Underground Mine ramp-up impact production volumes and costs?
- What are the expected timelines and targets for the 2025 exploration programs at Laverton?
- How sustainable is the current toll milling strategy for managing ore stockpiles and cash flow?