SUMATRA COPPER & GOLD PLC
Registered No. 5777015
QUARTERLY REPORT: DECEMBER 2016Sumatra Copper & Gold plc
("the Company") ASX Code: SUM
Capital structure
At 19.1.2017
709,735,176 listed CDIs
1,217,006 unquoted shares
1,500,000 options
311,932,436 warrants
7,000,000 convertible notes
Market capitalisation
At 19.1.2017
CDI price: A$0.025
Market capitalisation: A$17.7m
Cash & bullion, debt
At 30.12.2016
Cash and bullion: US$4.4m Loan facilities: US$49.6m
Working capital facility: US$5.1m Convertible notes: US$7m
Board of Directors
Chairman
Stephen Robinson Managing Director David Fowler Executive Director Adi Sjoekri
Non-Executive Directors
Jocelyn Waller Gavin Caudle Andy Robb
Registered Office
39 Parkside, Cambridge United Kingdom CB1 1PN
Level 1, 5 Ord Street West Perth WA 6005
T: +61 8 6298 6200
E: info@scgplc.com
Highlights
The Company is pleased to present its December 2016 quarterly activities report for the Tembang Gold-Silver Project, located in southern Sumatra, Indonesia ("Tembang").
ProductionFull year 2016 guidance met with 30,509 oz AuEq* produced.
Record gold production for the quarter of 7,307 oz and silver production of 100,482 oz (total of 8,685 AuEq oz).
All-in sustaining cost (AISC) of US$1,162/oz.
Gold recovery of 91.5% and silver recovery of 78.3%.
Finished product stocks of 1,501 oz gold and 27,297 oz silver at quarter end.
Positive Belinau underground reconciliation of mined ounces versus resource model.
SalesGold sales of 7,394 oz and silver sales of 100,150 oz.
Gold and silver revenue of US$8.998 million and US$1.674 million respectively for total revenue of US$10.672 million.
Average realised sales price for gold of US$1,217/oz and silver of US$16.71/oz.
SafetyNo Lost Time Injuries (LTIs) during the quarter.
Total of 4,825,809 manhours completed LTI-free since initial construction began at Tembang in July 2013.
FinancialCash & cash equivalents at 30 December 2016 of US$2.5 million and bullion of US$1.88 million.
Agreement executed with lenders to amend the US$45 million senior secured debt facility & warrants. Major shareholders to convert US$7 million of convertible notes.
ExplorationNear mine exploration activities remained focussed on advancing priority targets in the Tembang Exploration Target Pipeline towards drill testing.
Total of 538m of trenching and collection of 127 soil samples.
OutlookGuidance for 2017 unchanged at 45,000 - 55,000 oz AuEq.
Note: all data above is for the quarter ended 31.12.2016 unless stated.
* AuEq = Gold Equivalent Ounces, calculated as oz Au + oz Ag / 75
Summary
Table 1: Tembang Operations - Key Production Statistics
Tembang Operations | Unit | March Quarter 2016 | June Quarter 2016 | September Quarter 2016 | December Quarter 2016 | Full Year 2016 |
Underground mining | ||||||
Ore mined | tonnes | 13,578 | 22,800 | 17,896 | 19,743 | 74,017 |
Mined grade | g/t Au | 4.61 | 4.60 | 4.60 | 6.19 | 5.04 |
g/t Ag | 93.71 | 69.61 | 91.55 | 68.33 | 79.17 | |
Contained metal | oz Au | 2,017 | 3,376 | 2,651 | 3,941 | 11,985 |
oz Ag | 41,000 | 51,139 | 52,791 | 43,470 | 188,400 | |
Open pit mining | ||||||
Ore mined | tonnes | 96,177 | 84,429 | 88,429 | 45,708 | 314,742 |
Mined grade | g/t Au | 1.31 | 1.28 | 1.59 | 2.45 | 1.54 |
g/t Ag | 27.01 | 21.10 | 24.41 | 53.21 | 28.68 | |
Contained metal | oz Au | 4,051 | 3,478 | 4,519 | 3,615 | 15,663 |
oz Ag | 85,519 | 57,408 | 69,563 | 78,368 | 290,858 | |
Mill production | ||||||
Ore milled | tonnes | 103,323 | 106,777 | 106,771 | 61,153 | 378,024 |
Mill grade | g/t Au | 1.81 | 2.15 | 2.04 | 4.05 | 1.94 |
g/t Ag | 50.02 | 37.61 | 33.03 | 65.15 | 37.08 | |
Contained metal | oz Au | 6,023 | 7,384 | 7,004 | 7,985 | 28,396 |
oz Ag | 166,540 | 129,388 | 113,619 | 128,374 | 537,922 | |
Recovery | % Au | 89.75% | 86.50% | 87.73% | 91.51% | 88.90% |
% Ag | 73.00% | 70.34% | 69.84% | 78.27% | 72.95% | |
Recovered gold | oz Au | 5,406 | 6,387 | 6,145 | 7,307 | 25,245 |
Recovered silver | oz Ag | 121,569 | 91,012 | 79,354 | 100,482 | 392,417 |
Gold & silver sales | ||||||
Gold sold | oz Au | 5,465 | 4,951 | 7,233 | 7,394 | 25,043 |
Silver sold | oz Ag | 119,922 | 82,628 | 79,573 | 100,150 | 382,273 |
Inventory at end of quarter | ||||||
Ore stocks | oz Au | 74 | 96 | 63 | 56 | 56 |
oz Ag | 2,735 | 1,514 | 1,166 | 1,031 | 1,031 | |
Metal in circuit | oz Au | 869 | 717 | 681 | 468 | 468 |
oz Ag | 14,424 | 10,246 | 9,833 | 10,957 | 10,957 | |
Finished product | oz Au | 1,150 | 2,586 | 1,501 | 1,501 | 1,501 |
oz Ag | 18,458 | 29,943 | 28,283 | 27,297 | 27,297 |
Quarterly Production Data
Figures 1 - 4: Key Quarterly Production Data
oz AuEq in ore mined
5,000
4,000
3,000
2,000
1,000
-
Fig 1. Underground mining
9.0
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0
g/t AuEq in ore mined
oz AuEq in ore mined
6,000
5,000
4,000
3,000
2,000
1,000
-
Fig 2. Open-pit mining
g/t AuEq in ore mined
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
Mar'16 Qtr
Jun'16 Qtr
Sep'16 Qtr
Dec'16 Qtr
Mar'16
Qtr
Jun'16
Qtr
Sep'16
Qtr
Dec'16
Qtr
Contained AuEq Mined grade AuEq
Contained AuEq Mined grade AuEq
Fig 4. Metal production
oz AuEq in ore milled
12,000
Fig 3. Ore milled
10,000
8,000
6,000
4,000
2,000
-
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
-
g/t AuEq in ore milled
oz Au & AuEq produced
6.0
10,000 | 5.0 |
8,000 | 4.0 |
6,000 | 3.0 |
4,000
2,000
-
Mar'16 Qtr
Jun'16 Qtr
Sep'16 Qtr
Dec'16 Qtr
oz Ag produced
2.0
1.0
0.0
Mar'16 Jun'16 Sep'16 Dec'16
Qtr Qtr Qtr Qtr
AuEq prodn Au prodn Ag prodn
Contained AuEq Milled grade AuEq
AuEq conversion is based upon the relative gold/silver price for the respective quarter: 80, 75, 68,73 for April, June, Sept, Dec quarters respectively
All-in Sustaining Cost (AISC)
Table 2: Tembang Operations - All-in Sustaining Cost (AISC)
Tembang | Unit | Dec Qtr 2016 | Full Year 2016 | Unit | Dec Qtr 2016 | Full Year 2016 |
Mining costs | US$m | 4,968 | 16,471 | US$/oz | 672 | 658 |
Processing costs | US$m | 2,150 | 10,100 | US$/oz | 291 | 403 |
General & admin costs | US$m | 1,227 | 4,980 | US$/oz | 166 | 199 |
Silver credits | US$m | (1,571) | (5,914) | US$/oz | (212) | (236) |
Inventory movements | US$m | 344 | 379 | US$/oz | 47 | 15 |
Cash costs | US$m | 7,118 | 26,016 | US$/oz | 964 | 1,039 |
Royalties | US$m | 392 | 1,379 | US$/oz | 53 | 55 |
Capital works (sustaining) | US$m | 1,075 | 4,355 | US$/oz | 145 | 174 |
All-in Sustaining Cost | US$m | 8,585 | 31,750 | US$/oz | 1,162 | 1,268 |
Production | oz Au | 7,394 | 25,043 |
Tembang Operations
Underground MiningDevelopment & Stoping
The Belinau underground mine achieved a record development rate during the December 2016 quarter, despite the loss of a single boom jumbo drill at the beginning of December (refer to ASX announcement 5 December 2016). There was 26% increase in development productivity for the quarter, compounding the 63% productivity increase in the September quarter. Total development for the December quarter was 1,188 metres (averaging 4.3 cuts per day) compared to 969 metres in the September quarter (average of 3.5 cuts per day). The development rate prior to the loss of the jumbo in December was 5.0 cuts per day (922m for the months of October and November).
The damaged jumbo is currently being repaired on site and is expected to return to service by the end of January 2017. A third, new, single boom jumbo has been procured and is scheduled to commence underground drilling during the 3rd week of January. The 3 jumbos will provide temporary redundancy in the system, with the underground mine currently restricted by available headings.
Figure 5. New T1D Boomer arrived on site
The structure related to the perched water table and water inflow in December (refer to ASX announcement 5 December 2016) was identified and is believed to be a shallow-dipping dilational zone within the orebody that is exceptionally porous. The mine pumping systems at the time of the water inflow were unable to cope with the sudden surge of water and procedures are now in place to mitigate the risk of future inrushes, including a dewatering plan for the identified structure.
The decline continued steadily, with 201m developed during the December quarter compared to 198m
Sumatra Copper & Gold plc published this content on 20 January 2017 and is solely responsible for the information contained herein.
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