R3D (ASX:R3D) achieves 300% cash margin improvement on Zeehan Slag

December 20, 2022 01:00 PM AEDT | By Ankur Jaiswal
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  • R3D Resources (ASX:R3D) has achieved substantial cash margin improvement on Zeehan low-grade furnace slag/matte shipments.
  • As per R3D, the surge in cash margin came on the back of favourable forex movements, cost reduction initiatives and pre-paid rehabilitation costs.
  • The Company has planned to use these additional funds for the near-term commencing of production at Tartana.

In a significant update, copper-gold explorer and developer player R3D Resources (ASX:R3D) recently reported a ~300% surge in cash margin on Zeehan low-grade furnace slag/matte shipments.

What aided the surge in cash margin improvement?

As per R3D, the substantial cash margin improvement came on the back of:

  • Favourable forex movements,
  • Cost reduction initiatives, and
  • Pre-paid rehabilitation costs.

The cash margin has increased to around AU$15 per tonne as against the AU$5 per tonne cash margin achieved on shipments undertaken in 2021 and early this year.


Source: © 2022 Kalkine Media®, Company update dated 5 December 2022

R3D resumed Zeehan shipments in September 2022 and has already shipped two shipments. ~11,000 tonnes shipment was dispatched in September, while the second shipment of ~20,000 tonnes was shipped in November.

Additionally, R3D has planned a 20,000 tonnes shipment on the M/V Ken Breeze on 7 December 2022.

The Company is looking to leverage the fall in the AUD/USD as the sale contracts are in USD and intends to use these funds to progress the Tartana Copper Sulphate Plant commencement and fund a ramp up in targeted exploration in 1H CY2023 and fund a ramp up in targeted exploration in 1H CY2023.

R3D is working on further growth prospects and has planned to ship around 20,000 tonnes every four to six weeks from December 2022 till stockpiles are depleted. 


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