After getting back on work, Century mine releases its first shipment of zinc to China.
In the announcement to Australian Securities Exchange, New Century Resources Limited (ASX: NCZ) today announced the completion of zinc concentrate loading at Karumba Port onto the MV Wunma with the export underway. The first parcel under shipment is reportedly being delivered to smelters group in China through export vessel waiting in the Gulf of Carpentaria.
The export of first production from restarted Century operations will include 10,000t zinc concentrate that contains no lead penalties and only an immaterial penalty for silica. With this shipment the company bags another forward sale of 10,000t of commissioning grade concentrate that will generate further A$15.3M in revenue from operations. This additional forward sale is scheduled for shipment to China in January 2019.
New Century Resources Managing Director Patrick Walta stated that first shipment of zinc concentrate represents a major milestone achieved by the company. He added that to begin shipping concentrate just 15 months after the listing of company on ASX outlines a testament to the strong dedication and culture within the Company.
The stock of zinc concentrate represents the production outcome from NCZ’s Century Mine located at Lawn Hill in Queensland. Century stopped working in 2016 ahead of care and maintenance activities but restarted its operations from this year.
In mid-September, the company completed the stockpiling process at Karumba port following which it has today announced the first zinc concentrate shipment as previously scheduled to be completed by the end of October.
In the normal process of business, the company first produces the zinc concentrate at mine which is then stored at company’s storage facility located at Karumba Port. It is sent in semi-liquid form via underground slurry pipeline spread through 304 km to transfer the produced output from mine to Karumba port.
Since lately company was struggling through saleability issues and shipping delays due to speculation of high lead content in New Century’s production. But in today’s statement it has been claimed that stock contains ‘zero penalty for lead.’ It has also been told that all production from Century to date has been sold and further the company has received strong market demand for its current commissioning grade concentrate. It includes the bids from NCZ’s existing European and Asian offtake partners to buy commissioning grade concentrate over and above their current long-term offtake contracts. The management informed that other zinc producers have also shown interest in Century Mine’s production for the process of concentrate trialing to blend out impurities within concentrates from other operations, such as manganese and iron.
On the news of zinc concentrate shipment as planned, NCZ share price jumped 12.5% to trade at $0.810 on 29 October 2018 (1: 37 PM AEST). The stock has seen a performance change of -50.34% over the past one year.
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