With the operations ramp-up at Asian Mineral Resources (AMR) Ban Phuc Nickel Project complete, the company has exceeded target production and sales. Mill production for 2014 was 12% above the targeted amount of 375,000 tonnes while mill recoveries of 85.2% were also above target.
In its annual report for 2014 the company stated that it had produced 6854 tonnes of nickel contained metal in concentrate, up from 1166 tonnes in 2013, and 3439 tonnes of copper contained metal in concentrate, up from 671 tonnes.
The report indicates revenue of $87.8 million (FY2013 $9.2 million) and an average realized nickel price for the year of US$7.75 per pound. The C1 unit operating cash costs were $3.03/pound (FY2013 $5.15).
There was strong operational cash flow of $17.6 million, allowing for $14.4 million of capital investment and $3.4 million of debt repayments. Gross profit was of $15.6 million for FY2014, up from $1.3 million in FY2013.
Asian Mineral Resources’ CEO Evan Spencer said: “We are extremely pleased with AMR’s performance. Despite a recent drop in nickel prices, our robust management of mining processes and cost reduction strategies will enable us to maintain solid cash flow going forward. At the same time, we are continuing to pursue multiple growth opportunities, with a particular focus on our advanced near-mine and regional exploration targets including a study which is being conducted on the disseminated resource and the results are expected by June.”
AMR is one of the few new sources of nickel sulphide supply globally. AMR commenced commercial production from its Ban Phuc nickel project in Vietnam in mid-2013. The Ban Phuc project currently produces more 6900 tonnes of nickel and 3500 tonnes of copper per annum contained in concentrate, plus a cobalt by-product.
In addition to in and near-mine expansion projects, Ban Phuc provides a cash-generative operating platform from which AMR can continue to focus on developing a new nickel camp within its 150sqkm of concessions located throughout the highly-prolific Song Da rift zone, where AMR has a number of advanced-stage nickel exploration targets.