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New Century Resources (ASX:NCZ)

December 2019 Quarter Operational Results: Century operations deliver further record metal production and operating cost reductions

December 2019 Quarter Operational Results: Century operations deliver further record metal production and operating cost reductions

Highlights
  • Achieved December 2019 quarter guidance: 28,123t zinc metal production & C1 costs of US$0.96/lb (payable metal, inc. treatment charges)
  • 7% increase in zinc production and a 3% decrease in C1 costs quarter-on-quarter
  • New Century continues to deliver consistently increasing zinc metal production and lower unit costs, with a further step change in operational performance anticipated in the March 2020 quarter from the commissioning of the rougher circuit upgrade
  • December 2019 quarter average recovery 49%, with improved recoveries outside of the scavenger circuit commissioning period and into January 2020 ranging 50 to 54%
  • December 2019 quarter average mining rate 8.3Mtpa, with progressive ramp up during the quarter for a current mining rate of 8.9Mtpa into January 2020
  • Expansion to 12Mtpa operations:
    • Proceeding as planned over the next two quarters, with the final rougher circuit upgrade due for implementation and commissioning in March
    • Expansion capital expenditure nearing completion, ~73% complete with ~$13M in capital expenditure remaining to be spent over FY20
  • New Century maintains total capital available of ~$61M for completion of ramp-up activities over the remainder of FY20
  • Overall CY 2019 performance:
    • Quarterly zinc metal production rate increase of 135% from Q2 FY19-20
    • Quarterly C1 cost reduction of 37% (Q2 FY19-20), including negative effects of an 89% increase in treatment charges (LOM C1 cost target of US$0.56/lb)
  • March 2020 quarter guidance of 29,000t – 35,000t zinc metal at C1 costs of US$0.85/lb – US$0.95/lb (payable metal inc. treatment charges)

New Century Resources Limited (Company or New Century) (ASX:NCZ) is pleased to provide an update on Century production and operational ramp up during the December quarter of 2019.


This update is also accompanied by the release of an Investor Presentation which includes an overview of the current status of the zinc market.

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