logo-loader
viewNQ Minerals PLC

NQ Minerals PLC continues its strong record of cash generation at the Hellyer mine in Tasmania

Snapshot

  • NQ owns a producing mine at Hellyer in Tasmania
  • Turnover of A$54mln and operating profits of A$12.2mln in 2019
  • Exploration of Queensland gold projects continues
Hellyer

Quick facts: NQ Minerals PLC

Price: 8 GBX

AQSE:NQMI
Market: AQSE
Market Cap: -
Follow

 

What NQ Minerals does

NQ Minerals PLC (LON:NQMI) is a project developer and mining company with a focus on Australian mining assets.

The company is led by a team of experienced mining and mining finance industry professionals, including chief executive Walter Doyle, an experienced venture capitalist.

NQ's principal asset is the Hellyer mine in Tasmania and the Mount Block permit surrounding the project.

Hellyer was commissioned at the turn of 2018/2019. 

NQ also owns the Ukalunda project in north Queensland, on which it has identified 33 prospects for follow-up work, including the Sunbeam mine, for which it has secured a mining permit.

At SquarePost, also in north Queensland, NQ has identified both breccia and vein-hosted mineralisation.

The miner has also increased its investment to £600,000 into battery metals specialist TEM.

An agreement was struck in early 2020 to purchase the historic Beaconsfield gold mine in Tasmania, which prior to its close was estimated to host 1.01mln tonnes of resources at a gold grade of 10.35 grams per tonne. An initial fee of A$2mln has been agreed.

 

How it's doing

David Lenigas took over the chair at the Australia-focused mining group in December as Hellyer's operations continued to improve

In the first quarter of 2020 the company produced 8,127 tonnes of lead concentrate, 4,609 tonnes of zinc concentrate, 1,081 ounces of gold, and 230,441 ounces of silver

In 2019 NQ generated A$54mln, leading to operating profits of A$12.2mln. 

In early 2020 authorities in Tasmania approved the company’s acquisition of the Mt Block permit around Hellyer, a 46 square-kilometre area that effectively triples NQ’s footprint.

After agreeing to purchase the historic Beaconsfield gold mine in Tasmania, in March 2020 NQ hired a firm of local mining consultants to prepare a due diligence study into re-opening the mine.

 

 

What the chairman says - David Lenigas

"Operations at NQ’s Hellyer operations have performed extremely well this Quarter, especially considering the current global COVID-19 pandemic. COVID-19 represents an unprecedented challenge for people, governments and businesses worldwide. The Tasmanian Government responded quickly to the virus and was the first State in Australian to limit any travel to its island State and has implemented strict controls within the state. Confirmed COVID-19 infections in the State remain low. Fortuitously, Hellyer is currently regarded by the Tasmanian Government as an essential businesses during this critical period. While Hellyer has implemented tightened control measures in respect to employee health and safety, mining and processing activities continue as normal as can be hoped for in these uncertain times. None of our employees have tested positive for COVID-19 and the actions we are taking represent our best judgement, based on what we know today. As always, the safety of our employees is our top priority. 

"With respect to operations for the Quarter, Hellyer has successfully implemented a number of steps to increase production rates by 10% to an average of 122 tonnes per hour. These actions are part of a systematic effort to raise overall production rates to 1.2 million tonnes per year. The base metals market has been under pressure due to the COVID-19 situation, however Hellyer is seeing a number of positives with USD vs AUD exchange rate moves during the period and a near 20% rise in the Australian gold price increase to A$2,620 per ounce.”

 

Inflexion points

  • Debt refinancing package was agreed for a US$60mln debt facility in March 2020
  • Battery metals initiative with TEM
  • Production and recoveries at Hellyer continue to improve
  • Precious metal production from tailings at Hellyer

 

Video interview with chairman David Lenigas

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of NQ Minerals PLC named herein, including the promotion by the Company of NQ Minerals PLC in any Content on the Site, the Company receives from...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

NQ Minerals' David Lenigas updates as it looks to nearly double mining...

NQ Minerals PLC's (AQSE:NQMI)(OTCQB:NQMLF) David Lenigas speaks to Proactive London's Andrew Scott after announcing they're to contract a second, high capacity mining dredge to boost its mining operations at the Hellyer project in Tasmania. The second dredge has a capacity to move 100 tonnes...

on 10/12/19

3 min read