Quarterly Activities Report
Sydney, Jan 31, 2017 AEST (ABN Newswire) - Avanco Resources Limited (ASX:AVB) ("Avanco" or "the Company") is pleased to present its Fourth Quarter 2016 Activities Report for the period ending 31 December 2016. During the quarter the Antas Mine continued to ramp-up, achieving record production, and passing a decisive milestone as it recorded positive cash flows. The Company remains debt free, with cash balances increasing to $22.9 million at year-end. In addition, the Company made good progress developing its new project pipeline, advancing construction activities at the Pedra Branca Copper-Gold Project and announcing a maiden resource at the CentroGold Project.
- Production guidance exceeded, with record quarterly production of 4,010t of copper (FY2016 11,188t) and 2,839oz of gold (FY2016 7,779oz)
- Record quarterly concentrate sales of 13,868t (FY2016 36,765t) and provisional sales revenue of US$23.0m (FY2016 US$58.2m)
- C1 unit cash costs improved 2% to US$1.22/lb compared to the previous quarter (FY2016 US$1.10/lb). Record free cashflow from operations increased to US$7.5m (FY2016 US$10.3m)
- Cash increased by US$3.5m after capital expenditure to US$22.9m at 31 December 2016 - the Company continues to be debt-free
- Excellent safety performance with no lost-time injuries
- Infrastructure construction at Pedra Branca advanced; rights purchased from copper major to prospective license along strike
- Maiden resource estimates at CentroGold announced
Commenting on the results, Mr Tony Polglase, Managing Director said: "In 2016 Avanco passed the main milestone of any mining company when the Antas Mine came in to production, notably in our case, ahead of schedule and below budget. The final quarter of 2016 saw us pass the second major milestone when only a short-6 months after declaring commercial production, the mine is now producing generous free cash flows, and therefore we close the year with a healthy cash balance of US$22.9 million and with no debt. We look forward to building on this success in 2017 as we continue to ramp-up, delivering more production at a time that the outlook for copper is improving, in addition to advancing the many growth opportunities available to us."
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About Avanco Resources Limited
Avanco Resources Limited (ASX:AVB) is a Brazilian focused exploration and development company. The company is targeting near term copper production from the high grade Antas Copper Mine (Stage 1), the exploration and development of the Pedra Branca (Stage 2) Copper Project, and exploring for new copper projects.
Antas and Pedra Branca are located in the world class Carajás Mineral Province in northern Brazil. The Carajás region is by virtue of the known mines and recent discoveries, regarded as one of the prospective mineral provinces in the world for the discovery of copper-gold and iron ore resources. It hosts numerous IOCG (Iron Oxide Copper Gold) deposits, including Sossego, Igarape-Bahai, and the World Class Salobo deposit.
Avanco Resources Board of Directors and Management team have extensive global resource industry experience, with the Company having offices in Perth, Australia, Rio de Janeiro, Brazil and Parauapebas, Brazil.
Avanco Resources Limited