Ten Sixty Four Limited reports a 9% rise in gold production to 13,123 ounces and a reduction in all-in-sustaining costs to US$2,045 per ounce for the September 2024 quarter, while advancing its Tigerway Decline project and navigating ongoing restructuring.
- Gold production increased 9% to 13,123 ounces
- All-in-sustaining costs decreased to US$2,045 per ounce
- Tigerway Decline project 85% complete with steady development progress
- Cash balance steady at US$5.6 million despite operational challenges
- Company remains under Deed of Company Arrangement with trading suspension
Operational Performance and Production Growth
Ten Sixty Four Limited (ASX: X64) has delivered a solid operational update for the quarter ending 30 September 2024, reporting a 9% increase in gold production to 13,123 ounces from the Co-O Mine, where it holds a 40% interest. This improvement was driven by higher average head grades of 5.20 g/t gold and increased tonnage mined, reflecting better grade stopes and enhanced mining efficiency.
The company also achieved a notable reduction in all-in-sustaining costs (AISC), which fell to US$2,045 per ounce from US$2,171 in the prior quarter. This cost improvement, alongside a gold recovery rate of 95.72%, underscores operational efficiencies despite the challenges inherent in underground mining.
Tigerway Decline Project Progress
Significant progress continues on the Tigerway Decline project, a critical infrastructure development for the Co-O Mine. Excavation and support works advanced by 500.2 metres during the quarter, bringing the project to 84.88% completion. The project-to-date expenditure stands at US$48.3 million, with total construction costs and completion timelines currently under review. This development is expected to enhance mine access and support future production growth.
Exploration and Resource Development
Exploration activities included 6,976 metres of underground drilling focused on resource definition and reserve development, particularly targeting Levels 10 and 12 of the mine. The drilling campaign yielded high-grade intercepts, including standout results such as 2.50 metres at 129.85 g/t gold. Additionally, the Royal Crowne Vein project saw the completion of three resource definition drill holes totaling 426 metres, aimed at upgrading the existing mineral resource estimate.
Financial Position and Corporate Status
Ten Sixty Four reported a stable consolidated cash balance of US$5.6 million at quarter-end, marginally up from US$5.5 million in the previous quarter. The company continues to manage its operations under a Deed of Company Arrangement (DOCA), with ongoing efforts to satisfy conditions precedent. Corporate general and administrative expenses remained steady at US$0.9 million. Notably, the company’s securities remain suspended from trading since February 2023, reflecting the ongoing restructuring process.
Outlook and Strategic Considerations
While operational metrics show encouraging signs of recovery and efficiency, Ten Sixty Four’s future hinges on successful completion of its restructuring and the Tigerway project. The company’s ability to convert exploration success into resource upgrades and maintain cost discipline will be critical in restoring investor confidence and resuming normal market activities.
Bottom Line?
Ten Sixty Four’s operational gains offer a glimmer of stability, but the path through restructuring remains pivotal.
Questions in the middle?
- When will the Deed of Company Arrangement conditions be fully satisfied to lift trading suspension?
- How will the final Tigerway Decline project costs and completion timeline impact future production?
- Can ongoing exploration results translate into meaningful resource upgrades to support mine life extension?