Sydney - Monday - July 26: (RWE Australian Business News) - Kagara Ltd (KZL) reports ore production in the June quarter was supplied from three north Queensland underground ore-bodies at Mungana, Balcooma and Mt Garnet, with ore being processed through the two treatment plants at Mt Garnet.
Copper production was down on the previous quarter at 3867 tonnes as a result of ore being produced from lower-grade stopes at Balcooma, while zinc production was slightly higher at 10,669 tonnes.
Tonnage of both metals were marginally down on forecast for the year at 20,214 tonnes of copper (21,000 tonnes forecast) and 43,970 tonnes zinc (45,000 tonnes forecast).
Forecast production for the 2010/11 financial year is 22,000 tonnes of copper, 50,000 tonnes of zinc and 5000 tonnes of lead.
Cash operating margins for copper at $US1.51 per pound of payable copper from the Mt Garnet copper plant were up on the previous period, while the cash operating margins for zinc at US25c per pound of payable zinc were down, largely due to a fall in zinc prices.
Relocation of PAF waste back into the Balcooma open pit, which continued during the quarter, continued to have a negative impact on copper margins.
Stockpiles at the end of the June quarter were 2648 tonnes of copper concentrate, 166 tonnes of zinc concentrate and 55 tonnes of lead concentrate either at the Townsville port or on site at Mt Garnet.
KZL Price at posting:
62.5¢ Sentiment: Buy Disclosure: Held
