Struggling fluorspar-miner Sallies has achieved "small profits" in recent months at its Witkop mine near Zeerust, as well as having won new-order mining rights for the operation, it announced on Wednesday.
Chairperson and CEO Tom Dale said that this was thanks to the "sharply higher prices" that the mine was fetching for its production from the mine. He also stated that there were early signs of improving output levels at Witkop, which had reported serial losses for the past couple of years.
In March, the JSE-listed miner said that uneconomical contracts at the operation would expire by April, and that rand prices being achieved by Witkop would rapidly turn the mine's fortunes around from the fourth quarter of this financial year.
Sallies said in a Securities Exchange News Service statement that the Department of Minerals and Energy had notarised the Witkop's new-order rights at a meeting on Tuesday. The rights covered 4,219 ha on the farm Wintershoek and 2,402 ha of the farm Buffelshoek.
Witkop's total reserves and resources amounted to 70.3-million tons as at December 31.
"These provide a healthy base for the future at the current extraction rate of 1.8million tons a year," Sallies said.
Dale said the new management team of Sallies is determined to deliver value to shareholders.
Source: Mining Weekly
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