Bounty Mining Limited recorded excellent quarterly production from the Cook Colliery mine (recommissioned in January 2018) during the March 2019 quarter. The mine has produced 146k run of mine tonnes that represents a 5% increase on the December 2018 quarter.
It comes as a part of a quarterly report released by Bounty Mining Limited (ASX: B2Y) on 16 April 2019. Bounty has reportedly continued to invest in refurbishing Cook Colliery’s equipment which has resulted in improved productivity during the quarter with direct mine site cash outflows being 5.6% lower than the previous quarter.
During the quarter, Bounty made sales to Xcoal Energy and Resources Gmbh (coking coal) and Flame SA (thermal coal) under its Prepaid Sales Agreements with those parties. It generated a total A$26 million from sales of Coking Coal and A$3.25 million from sales of Thermal Coal.
The Group has also secured a $20,000,000 working capital facility from its largest shareholder, Amaroo with 17.51% voting power. The proceeds are slated to be received in four tranches of A$5,000,000 which the company intends to utilise in supporting the operation of Cook Colliery and Cook CH PP and other purposes as agreed.
On 19 March, Bounty announced that it had reached an agreement with Amaroo to increase the funding facility to $35 million as an interim step in supporting the company until appropriate long-term funding is available. However, all funds drawn under the increased facility are due to be repaid by 31 July 2019.
Bounty has further achieved improved efficiency, reliability and productivity of the operation by reducing the number of mining units from 4 to 3 in mid-February, which more optimally aligns with the company’s shuttle car capacity. This reduction to 3 mining units combined with the introduction of a new, flatter management structure has resulted in a 15% labour reduction at Cook Collier.
The company is currently working with the Port of Gladstone, Aurizon Network and Aurizon Operations with the intent of entering into the long-term arrangements. The company expects the arrangement to be effective from July 2019, thereby securing more throughput capacity for its Cook Colliery operations while creating certainty around logistics and further operational advantages. It further expects toll washing at CHPP to commence in May 2019.
On the leadership front, the company announced the appointment of Jim Griffin as the new CEO of Bounty and John Hart as new General Manager from February 2019.
Bounty’s cash balance stands at $2.04 million at the end of March 2019 quarter, compared to the opening balance at the beginning of the quarter of $3.01 million. This primarily reflects the cash outflow from operating activities on the payment for production and distribution.
B2Y last traded at $0.120 on 16 April 2019. It has given an attractive 22.45% yield in the year-to-date including the positive price change of 87.50% in the last one month.
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