GWR GROUP LIMITED December 2021 Quarter Highlights
onlyOverview
Following volatility in the Iron Ore markets, GWR suspended mining operations at the C4 Iron Ore Mine during the September 2021 quarter initially for 30 days and subsequently extended the suspension during this quarter (DecQ21) whilst it attempts to understand the volatility in the iron ore price and considers its position regard to recommencing operations. Refer to Subsequent Events (Wiluna West Iron Ore) section below for an outline of current C4 iron ore operations which have recommenced
useJWD Deposit mining operations were also suspended during the quarter by JV Operator CuFe Ltd (ASX:CUF), please refer to Refer to Subsequent Events (JWD Deposit) section below for an outline of current JWD iron ore operations which have recommenced.
Wiluna West Iron Ore
- GWR shipped a total of 115,009 wet metric tonnes (wmt) of high-grade lump product comprising two shipments in October and December.
- A total of 786,193 wet metric tonnes (wmt) of iron ore has now been shipped since February 2021
- Crushing and screening of existing stocks continued throughout the Quarter with a total of 209,542 wet metric tonnes (wmt) crushed.
Subsequent Events (Wiluna West Iron Ore) -
personal | • | • 55,000 tonnes of high-grade lump secured for a March shipment |
Fixed price contracts for a total of 145,000 tonnes of product for January, | ||
February and March 2022 on a FOB basis have been secured. The FOB | ||
contracts mean that the shipping costs are not borne by GWR. | ||
• 30,000 tonnes of high-gradelump in January on a fixed price at | ||
US$100/t. | ||
• 60,000 tonnes of high-gradefines and lump has been secured | ||
for the February Shipment on a fixed price of US$95/t (Fines) and | ||
US$100/t (Lump). | ||
For | on a fixed price of US$110/t. | |
• Mining operations recommenced in January 2022 in order to produce the iron ore required for the March shipment.
• The C4 Stage 1 pit has significant quantities of high-grade ore available for mining at a low strip ratio, with the current bench containing 111,050 tonnes at 62.0 % Fe at a stripping ratio of 0.3:1.
• Stage 2 will incorporate a cutback that has been partly blasted prior to scaling back operations in late September 2021. This will expose a further 2 million tonnes of high-grade product.
• Sales during the quarter achieved A$118.71 per dmt FOB.
• C1 FOB unaudited cash costs for the quarter were A$117.42 per wet metric tonne ("wmt").
• The Company continues to investigate long term infrastructure solutions for the Wiluna West Iron Ore Project with a focus on Esperance port.
About GWR Group
GWR Group Limited ("GWR") is an independent, Australian resource house, focused on creating shareholder wealth through the development of high-quality mineral exploration and development projects.
GWR Group has a portfolio of mineral commodity projects that includes projects held in its own right, in joint ventures and indirectly through investment in other listed entities. We aim to create value through operational excellence and innovation in exploration and project development. We will collaborate with our stakeholders to build a sustainable mining business and the respect of our peers.
Corporate Summary
ASX code: | GWR |
Issued Capital: | 303.5 million |
Issued Options | |
Quoted: | 12.8 million |
Cash on hand: | $6.7 million |
Listed Securities: | $8.25 million |
Board & Management
Gary Lyons
Non-executive Chairman
Mick Wilson
Executive Director
Tan Sri Dato' Tien Seng Law
Non-executive Director
Kong Leng (Jimmy) Lee
Non-executive Director
Datuk Chin An (CA) Lau
Non-executive Director
Phil Robinson
C4 Project Manager
Mark Pitts
Company Secretary
Page 1 of 13
2012
QUARTERLY REPORT | June 2021
JWD Deposit | SEPTEMBER 2012 |
ABN 54 102 622 051
- Mining operations at JWD were suspended in October 2021 and a total of 47,427 tonnes of ore was mined during the December Quarter.
- Two shipments of high-grade lump have been made totaling 119,791 wmt since mining commenced in June 2021.
- A variation to the Mining Rights Agreement was agreed in November 2021.
onlySubsequent Events - JWD Deposit
• Mining operations re-commenced in January 2022 with an increased iron ore price and the lump premium both being positive for JWD economics.
• Strategy to run down mined ore stocks to reduce cash costs of mining and preserve working capital is completed.
• | |
Mining activities have recommenced with first ore ex-pit being delivered to the plant 7 January | |
2022 | |
useSubsequent Events - Prospect Ridge Magnesite Project | |
personal | • On 27 January 2022, GWR announced that it was entering the 'Green' and EV space by signing a |
placed on the Critical elements List and is subject to Federal Government previously announced | |
Binding Term Sheet with Jindalee Resources Limited (ASX:JRL) for the acquisition of a 70% | |
interest in the Prospect Ridge Magnesite project located in north west Tasmania. | |
• In addition GWR advised that it had received firm commitments to raise $2 million before costs | |
via a placement to assist with working capital and to fund work programs to advance the Project. | |
• The Prospect Ridge Magnesite project area sits on a granted Exploration Licence, (EL5/2016), it | |
is 11km long and 51km2 and contains two deposits, the Arthur River and Lyons River deposits | |
containing the third largest Magnesite inventory in Australia. | |
• Prospect Ridge is an advanced project and contains a JORC 2012 Inferred Mineral Resource | |
estimate of 25 million tonnes of Magnesite grading 42.4% MgO, 4.8% SiO2, 1.4% Fe2O3 and 2.6% | |
CaO to an average depth of 100m below surface at a cut-off of 40% MgO (Table 1). (refer ASX | |
announcement 27 January 2022) | |
• Magnesite is the principal ore for Magnesium (known as the "green metal") which is the lightest | |
structural metal known to man being two thirds lighter than aluminum. Magnesium has been | |
For | $2 billion fund to finance critical metals production. |
Page 2 of 13
2012
QUARTERLY REPORT | June 2021
C4 Iron Ore Project - Key PerformanceSEPTEMetricsBER 2012
use only
March Q | June Q | Sept Q | ||||||||
FY21 | FY21 | FY22 | ||||||||
89,878 | 202,126 | 250,582 | ||||||||
15,238 | 13,779 | 84,261 | ||||||||
105,116 | 215,905 | 334,843 | ||||||||
141.20 | 185.50 | 103.52 | ||||||||
120.20 | 120.30 | 134.86 | ||||||||
23.97 | 27.25 | 33.42 | ||||||||
March Q | June Q | Sept Q | ||||||||
FY21 | FY21 | FY22 | ||||||||
- Wiluna West Iron Ore - ~131 million tonne resource at 60% Fe of high grade hematite
- Tungsten - Investments in Tungsten Mining NL (TGN:ASX) and Hatches Creek JV
- Cornerstone and Equity Investments - eMetals Ltd (EMT:ASX)
And pending completion of the acquisition
- Prospect Ridge Project - 25 million tonne Magnesite resource at 42.4% Mgo
2012
QUARTERLY REPORT | June 2021
SEPTEMBER 2012
ABN 54 102 622 051
Wiluna West Iron Ore Project
Mining and Production C4 Mine
Mining operations at the Company's C4 Iron Ore Mine were suspended in September 2021 due to the volatility in onlyIron Ore prices, now following recent price increases the Company has confirmed that mining has recommenced.
Although mining operations were suspended, broken ground from a final blast carried out in September was retrieved from the pit floor, in addition crushing from the ROM pad and hauling to the port did continue between October and December enabling GWR to capitalise on a significant inventory of iron ore stockpiles that existed up until mining suspension. The Company successfully negotiated fixed price sales contracts of high-grade lump product in October for 57,859 wmt and December for 57,150 wmt for a total of 115,009 wet metric tonnes.
GWR has successfully negotiated fixed price sales contracts for a total of 145,000 tonnes of product for January, February and March 2022.
A January shipment of 30,000 tonnes of high-grade lump has been secured on a fixed price (FOB Basis) at useUS$100/t, this shipment will be a part cargo comprising 30,000 tonnes from C4 together with high-grade product from Fe Limited's JWD mine. Shipments for February and March have been secured on a fixed price (FOB Basis)
at US$95/t (Fines), US$100/t (Lump) and US$110/t (Lump) respectively.
A comprehensive review of costs has been undertaken and has identified operational savings. In addition, shipping on an FOB basis will mean that GWR is not liable for shipping costs.
Stage 1 and Stage 2
personalThe 100% owned C4 Iron Ore mine has remained in a production ready state in order to take advantage of a recovery in the iron ore price and GWR always maintained that it had taken an opportunistic approach to its Wiluna mining operations. Beginning when the ore price was high and the AUD relatively weak in trading terms and after negotiating a contract with Pilbara Resources Group (PRG) that mitigated risk and the requirement for capital.
The C4 Stage 1 pit has significant quantities of high-grade ore available for mining, and the company is confident it can control its C1 cash cost and deliver into fixed price sales contracts.
In addition, GWR has made the decision to proceed with the Stage 2 pit cutback that will expose ~2,000,000 tonnes of high-grade product. Although some additional blasting will be required, the cutback had been largely already blasted prior to scaling back operations in late September.
GWR advised that its Alliance Contract partner, Pilbara Resources Group (PRG) entered into Voluntary Administration on 17th December 2021. The Company has been working with the PRG administrators, although to date their situation has had little impact on the C4 project, GWR does not anticipate that the administration process will result in any impact on the C4 project or GWR.
For
Page 4 of 13
2012
QUARTERLY REPORT | June 2021
102 622 051
onlyuse
personal Figure 1: Overview of C4 Project Location
ForFinancial Details
• Net operating cash inflows for the quarter were $12.9 million, there was no material capital expenditure.
• Unaudited C1 FOB cash costs for the quarter were A$117.42 per wmt and the FOB sales price was A$118.71 per dmt.
Infrastructure Studies
Company has continued with desk top studies to assess long term infrastructure solutions including logistics and port options to support long term sustained iron ore production. GWR currently has approvals in place to mine iron ore at a rate of 7Mt per annum for 10 years. The initial focus will be on potential road and rail options to Leonora and upgrades to the existing railway between Leonora and Kalgoorlie
Page 5 of 13
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GWR Group Limited published this content on 31 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 January 2022 09:28:01 UTC.
