FIRST PAYMENT FOR NICKEL CONCENTRATE RECEIVED AS MINCOR DELIVERS
PRODUCTION RESTART ON TIME AND BELOW PEAK FUNDING GUIDANCE
Receipt of first cash-flow results in another milestone delivered by Mincor
• Mincor receives net proceeds of A$25.3 million from BHP Nickel West, representing 90% of the payment
for nickel concentrate calculated for ore deliveries up to 31 May 2022. Final 10% payment due in August.
• The net proceeds figure is derived from 1,003 tonnes of nickel in concentrate and includes deductions for
processing charges and freight rates consistent with the OTCPA with BHP Nickel West.
• Mincor has successfully delivered the project for an actual peak funding outlay of A$98 million, ~8% below
the previous estimate of A$107 million (see ASX announcement 7 September 2021). Peak funding
represents capital expenditure and working capital costs prior to first sales.
• This outcome represents an outstanding result for Mincor, with the successful delivery of two mining
operations developed entirely during the COVID-19 pandemic period.
• Major capital works now predominantly complete, with the new Cassini Village the final outstanding
project scheduled for completion early in the December 2022 quarter, and slightly lower than budget.
Mincor Resources NL (ASX: MCR, “Mincor” or the “Company”) is pleased to advise that it has received payment
for the Company’s first parcel of nickel ore to be processed through BHP’s Kambalda Nickel Concentrator.
The payment of A$25.3 million represents sales receipts for 90% of the imputed nickel concentrate production
up to 31 May 2022 (less processing and freight charges) with the balance to be paid in August, under the terms
of the enhanced Ore Tolling and Concentrate Purchase Agreement (OTCPA – see ASX announcement, 29 April
2022) with BHP Nickel West.
Sales for the month of May have been derived from the steady build-up of development ore stockpiles over a
number of months. Mincor continues to be laser focused on its ramp-up activities at both mining centres, with
a key operational milestone achieved last week with the first stope opened up at the Northern Operations.
Importantly, with the receipt of this first tranche of sales revenue, Mincor has delivered the restart of its
Kambalda Nickel Operations for an actual peak funding outlay of A$98 million, being ~8% below the previously
disclosed figure of A$107 million.
This is an outstanding achievement given that project development has been executed while Mincor has been
dealing with the challenges of the global COVID-19 pandemic and its flow-on impacts which have been widely
reported.
Major capital works are now predominantly complete, with the Cassini accommodation village expected to be
completed early in the December 2022 quarter. At this stage, the total cost of the Village is estimated to be
marginally lower than the A$15 million guidance (see ASX announcement 7 September 2021) with all long-lead
and major items under firm order with deposits paid.
At the same time, the Company is looking forward to delivering an Initial Mineral Resource for the newly
identified LN04a surface at the Golden Mile (Northern Operations) in July, underpinned by the first stage of
results delivered so far ahead of what is expected to be a significant ongoing drilling program for FY23.
2
Management Comment
Mincor’s Managing Director, David Southam, said: “Receipt of first nickel sales is yet another outstanding
achievement for the Company as we complete our return to the global ranks of nickel producers.
“We are also particularly pleased that we have achieved this milestone, including the development of two
underground mines, below our peak funding estimate. This is a tremendous result in one of the most challenging
operational environments in recent memory, and is testament to the dedication and efforts of our people and
our contracting and operating partners, such as BHP – all of whom have been aligned to the successful
resumption of high-quality nickel production in Western Australia.
“We are continuing to invest strongly in exploration, with the first tangible payback from our drilling success at
the Golden Mile due to be delivered in July with an initial Mineral Resource for the LN04a. The program for further
drilling and extensional work will continue in FY23 with a focus on the Golden Mile and drilling from favourable
underground positions at Cassini to target extensions of the Cassini Main orebody and the adjacent Cassini North
channel.”
Approved by:
Board of Mincor Resources NL
PRODUCTION RESTART ON TIME AND BELOW PEAK FUNDING GUIDANCE
Receipt of first cash-flow results in another milestone delivered by Mincor
• Mincor receives net proceeds of A$25.3 million from BHP Nickel West, representing 90% of the payment
for nickel concentrate calculated for ore deliveries up to 31 May 2022. Final 10% payment due in August.
• The net proceeds figure is derived from 1,003 tonnes of nickel in concentrate and includes deductions for
processing charges and freight rates consistent with the OTCPA with BHP Nickel West.
• Mincor has successfully delivered the project for an actual peak funding outlay of A$98 million, ~8% below
the previous estimate of A$107 million (see ASX announcement 7 September 2021). Peak funding
represents capital expenditure and working capital costs prior to first sales.
• This outcome represents an outstanding result for Mincor, with the successful delivery of two mining
operations developed entirely during the COVID-19 pandemic period.
• Major capital works now predominantly complete, with the new Cassini Village the final outstanding
project scheduled for completion early in the December 2022 quarter, and slightly lower than budget.
Mincor Resources NL (ASX: MCR, “Mincor” or the “Company”) is pleased to advise that it has received payment
for the Company’s first parcel of nickel ore to be processed through BHP’s Kambalda Nickel Concentrator.
The payment of A$25.3 million represents sales receipts for 90% of the imputed nickel concentrate production
up to 31 May 2022 (less processing and freight charges) with the balance to be paid in August, under the terms
of the enhanced Ore Tolling and Concentrate Purchase Agreement (OTCPA – see ASX announcement, 29 April
2022) with BHP Nickel West.
Sales for the month of May have been derived from the steady build-up of development ore stockpiles over a
number of months. Mincor continues to be laser focused on its ramp-up activities at both mining centres, with
a key operational milestone achieved last week with the first stope opened up at the Northern Operations.
Importantly, with the receipt of this first tranche of sales revenue, Mincor has delivered the restart of its
Kambalda Nickel Operations for an actual peak funding outlay of A$98 million, being ~8% below the previously
disclosed figure of A$107 million.
This is an outstanding achievement given that project development has been executed while Mincor has been
dealing with the challenges of the global COVID-19 pandemic and its flow-on impacts which have been widely
reported.
Major capital works are now predominantly complete, with the Cassini accommodation village expected to be
completed early in the December 2022 quarter. At this stage, the total cost of the Village is estimated to be
marginally lower than the A$15 million guidance (see ASX announcement 7 September 2021) with all long-lead
and major items under firm order with deposits paid.
At the same time, the Company is looking forward to delivering an Initial Mineral Resource for the newly
identified LN04a surface at the Golden Mile (Northern Operations) in July, underpinned by the first stage of
results delivered so far ahead of what is expected to be a significant ongoing drilling program for FY23.
2
Management Comment
Mincor’s Managing Director, David Southam, said: “Receipt of first nickel sales is yet another outstanding
achievement for the Company as we complete our return to the global ranks of nickel producers.
“We are also particularly pleased that we have achieved this milestone, including the development of two
underground mines, below our peak funding estimate. This is a tremendous result in one of the most challenging
operational environments in recent memory, and is testament to the dedication and efforts of our people and
our contracting and operating partners, such as BHP – all of whom have been aligned to the successful
resumption of high-quality nickel production in Western Australia.
“We are continuing to invest strongly in exploration, with the first tangible payback from our drilling success at
the Golden Mile due to be delivered in July with an initial Mineral Resource for the LN04a. The program for further
drilling and extensional work will continue in FY23 with a focus on the Golden Mile and drilling from favourable
underground positions at Cassini to target extensions of the Cassini Main orebody and the adjacent Cassini North
channel.”
Approved by:
Board of Mincor Resources NL
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( DYOR )
i hold MCR ( ‘free-carried ‘ )
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