Half Year Financial Report - Explanation of Results
EXPLANATION OF HALF-YEAR INFORMATION
- There was significant investment of $30m into Mine Development, Resource/Reserve definition/drilling activities, and plant and equipment. These major investing activities will sustain and create substantial value over the next 6-12 months as the Company transitions to its three-year development plan to produce 250kozpa.
- Ongoing investing activities relating to the current free-milling operations will be minimal and the Company expects operating margins and net operating cash flows to increase. Future transitional cash flows generated from the current free-milling operations will be able to be applied against future debt repayments as well as partially fund the three-year development plan related activities.
- Owing to a combination of operating performance and proceeds from equity transactions, the Company continued to strengthen the balance sheet, having improved its working capital position by A$15m since 30 June 20201.
- Net profit for the half-year ended 31 December 2020 of $11m. Gross profit and cash flows from operations of A$9m and A$1m respectively, was underpinned by gold production of 26,758oz at an All in Sustaining Cost ('AISC') of A$1,839/oz.
A review of the Company's operations is provided in the Directors' Report in the Half-Year Financial Report.
To view the half year financial report, please visit:
About Wiluna Mining Corporation Ltd
Wiluna Mining Corporation (ASX:WMX) (OTCMKTS:WMXCF) is a Perth based, ASX listed gold mining company that controls over 1,600 square kilometres of the Yilgarn Craton in the Northern Goldfields of WA. The Yilgarn Craton has a historic and current gold endowment of over 380 million ounces, making it one of most prolific gold regions in the world. The Company owns 100% of the Wiluna Gold Operation which has a defined resource of 8.04M oz at 1.67 g/t au. In May 2019, a new highly skilled management team took control of the Company with a clear plan to leverage the Wiluna Gold Operation's multi-million-ounce potential.
Wiluna Mining Corporation Ltd