Red 5 Boosts Gold Production, Narrows Losses in Record-Breaking Year
Australian gold miner Red 5 has reported a strong performance for the 12 months ending in June, with record-breaking gold production and narrowed losses. The company’s gold production surged from 66,871 ounces to 165,544 ounces during the period, while gold sales rose from 64,315 ounces to 164,974 ounces. This remarkable increase in production resulted in sales revenue climbing from A$164.9 million to A$422.7 million.
Red 5 achieved commercial production at its King of the Hills mine in Western Australia and successfully ramped up to steady state production following the completion of its new processing plant in 2022. The operational efficiency and solid financial results have enabled Red 5 to significantly reduce its loss from A$28.6 million in the previous financial year to A$8.7 million.
Mark Williams, Managing Director of Red 5, expressed satisfaction with the company’s performance and highlighted the improved safety measures implemented during the year. He stated, This is a solid financial result for Red 5 reflecting both the operational ramp-up at our newly commissioned King of the Hills mining and processing hub during the first half of the financial year and the strong performance we have been able to deliver in the second half since commercial production was declared in December 2022. We have also seen a greatly improved safety performance in line with our primary objective to deliver safe, efficient and profitable ounces.
Red 5’s three mining operations are aligning with the mine plan, and the processing plant is surpassing expectations by operating above its nameplate capacity. This positive outlook has the company poised to achieve its production and cost targets for 2024. Red 5 aims to produce between 195,000 ounces and 215,000 ounces of gold in the 2024 financial year, with an all-in sustaining cost ranging from A$1,850 to A$2,100 per ounce.
The company also intends to accelerate debt repayments in the coming year to strengthen its financial position for future growth opportunities. Williams commented, We continue to deliver positive cash flow from our operations and we are targeting to accelerate our debt repayments in the year ahead. This will provide the company with a robust balance sheet for future growth as we continue to unlock the potential of our long-life King of the Hills mining operation.
Red 5 remains optimistic about its prospects and is committed to delivering value to its shareholders. The company’s solid financial performance, increased production, and cost optimization efforts put it on track for a successful future.
Overall, Red 5’s record-breaking gold production and improved financial results demonstrate its ability to capitalize on strong market conditions and deliver profitable outcomes. The company’s focus on safety, efficiency, and long-term sustainability bodes well for its continued success in the gold mining industry.
