HIGHLIGHTS FROM SONS OF GWALIA LTD.'S QUARTERLY REPORT FOR THE THREE MONTHS ENDING 31.12.99, 17 January 2000
The Company also announced record tantalum production for the quarter of 285,702 lbs. equivalent to an annualised production rate of in excess of 1.1 million lbs. per annum.
RECORD TANTALUM PRODUCTION DRIVEN BY INCREASES FROM THE
WODGINA MINE
The Company said that its tantalum production increased by 40 per cent for the quarter to 285,702 lbs was a Company record. Tantalum was produced from both the Greenbushes and Wodgina Mines with a nearly threehold increase from the Wodgina Mine following the commissioning of the new processing plant. The Company also said that an underground Feasibility Study in respect of the Greenbushes Tantalum Mine was nearing completion.
The Executive Chairman of the Company, Mr Peter Lalor, said: "The Company's December Quarterly Report is an excellent one given the trend towards lower cash costs and increased cash margins for our gold production combined with record tantalum production and sales".
Sons of Gwalia Ltd.
Quarterly Report (Three months ending 31 December 1999)
From Chairman's Comments
Tantalum concentrate production was a record 285,702 lbs. for the quarter. This represents an increase of 40 per cent over the September quarter and an annualised production rate exceeding 1.1 million lbs. per annum. Tantalum production is expected to continue to increase further over the next two quarters as production from the newly commissioned plant at the Wodgina Mine continues to increase and the grade from the Greenbushes Mine improves in the second half. Tantalum demand continues strongly, driven by recent positive forecasts by Nokia on global mobile telephone usage, along with increasing usage from other areas.
Minerals Division
The Company is the world's largest producer of tantalum, accounting for approximately 50 per cent of primary tantalum concentrates produced on a global basis. Tantalum is used in the electronics and metal cutting industries, the development of super alloys and the manufacture of defence electronic systems and jet aero engines. Strong demand for tantalum continued, benefiting particularly from the substantial growth in mobile phone production. The Company is a significant participant in the global lithium minerals industry. Lithium minerals are used in the glass and ceramics industries for the production of pyroceramics, TV tubes, computer monitors and many types of container glass.
Tantalum
Total tantalum production for the quarter from the Greenbushes and Wodgina Mines was a record 285,702 lbs. and an increase of 40 per cent on the previous quarter. Sales were 268,763 lbs.
Greenbushes Mine, Western Australia (100%)
Tantalum production for the quarter from the Greenbushes Mine was 171,390 lbs. Production met budgetary targets. Production from the Greenbushes Mine will increase in the second half of the financial year due to higher grade ore being accessed. A Feasibility Study into the potential underground development of the Greenbushes Mine is nearing completion and results will be announced next quarter.
Wodgina Mine, Western Australia (100%)
Tantalum production for the quarter from the Wodgina Mine was a record 114,312 lbs. Production increased by nearly threefold over the previous quarter and is clearly a new site record as the new and larger processing plant was commissioned. Commissioning has been successfully completed and efforts will now focus on improving product quality. This includes a new flotation circuit which is currently being installed.
Lithium Minerals
Production of lithium minerals was 18,661 tonnes for the quarter. Sales were 25,377 tonnes.
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Note: strong market demand for Ta/end use applications, etc.
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