Focus Minerals Ltd Stock Market Press Releases and Company Profile
Focus Minerals Limited (ASX:FML) Quarterly Report For The Period Ended 31 December 2009
Focus Minerals Limited (ASX:FML) Quarterly Report For The Period Ended 31 December 2009

Perth, Jan 28, 2010 AEST (ABN Newswire) - Focus Minerals Limited (googlechartASX:FML) is pleased to provide Quarterly Activities Report for the period ended 31 December 2009.

Operational Review - Coolgardie Gold Project

Production during the December Quarter was 86,418 tonnes at 3.84 g/t. This predominately came from underground Perseverance production stoping and ore development at the Empress and Countess deposits, located within the Tindals Mining Centre. In addition, 2,340 tonnes at 8.96 g/t was produced at the Mount Project and trucked to Three Mile Hill.

Cash costs for the December Quarter were A$602 per ounce (including royalty costs). Production costs have increased slightly during the Quarter reflecting the increased mining activities and the early start-up costs of the Three Mile Hill Mill plant. These costs included staffing costs of mill shifts, early maintenance activities and increased training activities for new staff. Staff growth at Coolgardie has been from 38 employees in the September Quarter to 65 employees at the end of the December Quarter.

Total stockpiled ore at the end of the Quarter was 185,000 tonnes at 2.85 g/t containing approx 16,970ozs.

In October, Focus' mining contractor, Barminco, mobilised a twin boom jumbo to site and commenced an aggressive development program in the Empress and Perseverance declines. The advance of the Countess decline allowed for simultaneous accessing of new production levels at Empress and Countess. During the Quarter, over 961 metres of decline and ore drives were completed at Tindals.

Simultaneously, the 140m exploration decline [3.5m x 3.5m] was completed at the Mount. Ore development of over 150m was also completed on the primary and secondary German lodes.

CORPORATE

Hedging and Debt

During early October 2009, Focus delivered the balance of 1,200 ozs under the gold hedging facility. The Company has cleared all hedge facility commitments and is now completely unhedged to the gold price.

In December, Focus made its final A$3.75m payment to Investec Bank (Australia), clearing the A$17m loan facility established in 2008. It is important to note that A$13.4m of this facility was repaid during Calendar year 2009. Focus also completed repayment of the A$2m unsecured loan provided by CBR Group Inc during the Quarter.

Following these payments Focus enters 2010 100% debt-free.

Cash and Bullion

Revenue for the Quarter was A$14.95M million generated from the sale of 13,024 ounces of gold at an average price received of A$1,147.46/oz.

At 31 December, 2009, Focus had the following Australian dollar amounts available;
-------------------------------------------Cash at Bank                A$7.513 millionBullion on Hand             A$1.336 millionTotal Cash and Equivalents  A$8.849 million-------------------------------------------
Excludes A$982,000 held in secured deposit accounts supporting bank guarantees and bonds required under mining tenement conditions.

Capital Raising

During October 2009 Focus completed an A$8m capital raising via a share placement to institutional investors. This raising was undertaken to expedite funding for big ticket spare parts for the Three Mile Hill mill and for increased exploration and Reserve definition drilling.

Approximately half of the proceeds - which were raised through the placement of 200 million shares at 4 cents each to institutional clients of Petra Capital - have or will be used to acquire crucial spare parts for Focus' refurbished Three Mile Hill mill.

During the Quarter, breakdowns at the Greenfields toll treatment facility - while having no effect on Focus' production - served as a timely reminder that from time to time process plants do breakdown and led Focus to rethink its strategy surrounding long-lead item spare parts.

This raising underpinned the Company's strong financial position, but also recognised the critical nature of ensuring future milling operations could continue without major incident once the refurbished plant was commissioned. The purchase of spare parts significantly mitigates this risk.

For the complete Focus Minerals Quarterly Report for the period ended 31 December 2009, please click the link below:

http://www.abnnewswire.net/media/en/docs/62157-ASX-FML-477974.pdf

About Focus Minerals Ltd

Focus MineralsWith over 3.8Moz of Mineral Resource, Focus Minerals Limited (ASX:FML) has a highly strategic portfolio of assets across Australia's two leading gold producing districts – the Kalgoorlie/Coolgardie belt and Laverton – and the financial muscle to continue to unlock further potential for growth.

abnnewswire.com 


Contact

Campbell Baird, CEO
Focus Minerals Ltd
Tel: +61-8-9215-7888
www.focusminerals.com.au



ABN Newswire
ABN Newswire This Page Viewed:  (Last 7 Days: 2) (Last 30 Days: 18) (Since Published: 2846)