Maximus Resources Limited (ASX: MXR) today, on 28 March 2019, informed shareholders that the performance of the company in the March 2019 quarter demonstrates a notable change in both throughput and revenue on the back of consistent feed and budgeted performance from the Burbanks gold mill in WA.
The March quarter invoiced revenue exceeded $1.1 million, an increase of 200% as compared to $544,000 in the previous six months. The increase in revenue is driven by consistent ore feed and performance of the Burbanks mill and sound management of onsite costs.
Delayed ore supplies from third parties have resulted in reduced performance in July to December 2018 period, which resulted in the suspension of operations between August and mid-December and caused reducing expenditure.
An accurate picture of the cost recovery timeframes of the toll milling process is not always represented by the audited financial results. Large expenditures at the commencement of a campaign are not realised until the end of some treatment campaigns.
At Burbanks, large expenditures were incurred in December 2018 to re-stock consumables and reagents at the commencement of the Toll milling campaign. These costs were reported in the Half Yearly report of December 2018. Since the revenue to neutralize these costs was not received until January 2019, it gave an impression of poor financial performance.
The gold in circuit stocks increased to ~$1.8 million, led by the significant improvement in mill performance. These stocks will be drawn down over the next two months, with revenue from gold sales increasing the MXR annual revenue through to June 30, 2019. These facts are evidence of the company’s belief that the Eastern Goldfields Milling generates significant revenue for EGMS and MXR, subject to consistent availability of feed.
The company is negotiating and preparing for raising capital, which will provide working capital for EGMS operations, exploration and ensure that the maintenance improvement program of the company is achieved additionally, along with providing working capital to finalise due diligence on projects for the potential acquisitions that was announced in the previous quarterly report.
Continued support of shareholders is appreciated by the company as it continues to build on the recent performance of the Burbanks mill and secure long-term gold ore supplies, which is a prime factor in the significant operational and financial performances improvement of the company.
On the price-performance front, the stock of Maximus Resource Limited was trading at $0.078, an increase of 16.41% during the day’s trade, with a market capitalization of ~$2.03 million (At market close). The stock has generated a negative YTD return of 8.11% and generated negative returns of 40.87%, 9.33% and 13.92% over the past six, three and one-month period, respectively. Its 52-week high price stands at $0.230 and 52-week low price of $0.060 with an average trading volume of 65,475.