A record crushing and milling performance took place at Red 5’s King of the Hills (KOTH) gold mine during the December 2023 quarter.
This has resulted in an annualised mill throughput rate well in excess of 5.5 million tonnes per annum (Mtpa).
“A record crushing and milling performance was achieved at King of the Hills between November 18 and December 31,” Red 5 managing director Mark Williams said.
“This followed the completion of maintenance shutdowns in October and November, designed to improve the longer-term reliability of the crusher.
“These improvements, together with trials conducted through the second half of the quarter on reducing the primary crusher product size, have resulted in a notably improved mill performance without any decrease in crusher capacity.”
Williams said the KOTH open pit, KOTH underground mine and the Darlot satellite underground mine continue to perform strongly and in line with expectations.
“(This puts) the company firmly on track to achieve the top end of our FY24 (2023–24 financial year) production guidance of 195,000–215,000 ounces, at an AISC (all-in sustaining cost) of $1850–$2100 per ounce (oz),” he said.
The Western Australian gold miner previously revealed that KOTH produced 53,017oz during the December 2023 quarter, resulting in $22.6 million in free cash flow generation.
Red 5’s strong December quarter marks the third successive quarter of production the company has had above 50,000oz, as the company produced 55,009oz during the September quarter and 61,705oz during the June quarter.
The company closed the December quarter with $53.3 million in cash and other liquid assets and $102.8 million in total outstanding debt, following a repayment of $10 million.
“With an ongoing focus on optimising our operations and delivering safe and profitable ounces each month, Red 5 is well placed to continue to unlock additional value from our exceptional asset base in the Leonora region, with the next 12 months looking to be a productive and rewarding period for the company,” Williams said.
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