Red 5 told the ASX on Wednesday the mine had churned out 61,705oz in the June quarter at an all-in sustaining cost of $1690/oz, meaning 102,574oz had been produced during the first half of this year at an AISC of $1837/oz.
This fell within the upper range of half-year guidance of 90,000oz-105,000oz.
With quarterly sales of 58,960oz, the company had operating cash flows of $50.6 million for the quarter.
Red 5 said King of the Hills’ processing plant was now operating at an annualised throughput rate of up to 5.5 million tonnes per annum, 37.5 per cent higher than the nameplate design of 4Mtpa.
The company said its net debt position at June 30 was $45.9m, with $22m of bank debt repaid during the June quarter and $127.8m outstanding on the King of the Hills debt facility.
Red 5 managing director Mark Williams said the June quarter had been a watershed period for Red 5.
“We have seen four consecutive months of record production since March, underpinning production for the June quarter of 61,705 ounces, at a quarterly all-in sustaining cost of $1690 per ounce,” he said.
“As a result, we have achieved the upper end of our production guidance and mid-range of cost guidance for the second half of FY2023.
“The King of the Hills processing plant also achieved record throughput rates for the quarter. In June, it has been operating at an annualised throughput rate of up to 5.5 million tonnes per annum — a significant increase from the original nameplate capacity of four million tonnes per annum, and this rate is expected to be maintained.
“We reached the main orebody of the King of the Hills open pit in February, which was the key driver of the uplift in feed grades at the process plant.
“The performance of the King of the Hills underground, and Darlot underground has also been tracking well, providing higher-grade ore to the mill.
“The operation has been cash flow positive since March, putting Red 5 in a solid position to continue to de-leverage and strengthen the balance sheet for the future.”
