Big opening for Altona
Staff reporter, 15 February 2012
Entrance to the Kykylahti decline.
ALTONA Mining’s delivery of first copper concentrate from its Outokumpu operation in Finland to New Boliden has officially converted its status to producer and ticked a key box in its quest to win stronger market favour.
The ASX and Frankfurt listed company, which had a market capitalisation this week around the $A142 million mark, said at the end of January it saw the main catalysts for “reversing the deep discount to [recent] broker valuations” being the ramping up of production in Finland, after meeting start-up timing and budget goals, followed by the soon-to-be-completed definitive feasibility study on the Little Eva copper project in Queensland, Australia.
Little Eva is part of Altona’s broader Roseby project, combined with the Finland asset when the company was formed (from Vulcan Resources and Universal Resources) early in 2010. Xstrata, which bought Exco Resources’ Cloncurry copper project for $A175 million last April, has an option to acquire 51% of Roseby – due to expire in June this year.
Exco’s resource of 52 million tonnes grading 0.77% copper and 0.23g per tonne gold compares with Roseby’s current 210Mt grading 0.6% copper and 0.06gpt gold. Altona’s DFS is focusing on a standalone 6Mtpa openpit mine and concentrator at Little Eva.
One broker put a $A142 million (“in ground … only”) value on Roseby late in 2011.
Helmsec Global Securities also forecast pre-tax cash flow from the Outokumpu operations in Finland at $A242 million over the current nine-year planned life of the project, using the 550,000tpa base planned production rate and cash costs of $A1.28/lb copper averaged over the life of the operation for 8000tpa of copper (and 8000ozpa of gold).
Copper in flotation cells at Luikonlahti.
The Luikonlahti mill and Kykylahti mine are about 400km north-east of the Finnish capital Helsinki in a district with more than 70 years of mining history and production of 2Blbs of copper and 1Mozs of gold. The project, with capital start-up costs of about $A49 million, is close to infrastructure and has available water and power.
Altona managing director Dr Alistair Cowden said this week reaching first production seven months after starting plant refurbishment was a “great achievement”.
“This is a significant milestone for the project following closely after achieving first production from the Kylylahti mine,” he said.
First revenue was anticipated in March.
Concentrate grades had quickly ramped up to the design grade of 24% copper – another positive given the low grade feed used for commissioning the Luikonlahti plant, Cowden said. The concentrate was clean with no penalty elements. Commissioning was continuing using higher grade feed (1-1.5% copper) with completion of engineering and process commissioning expected this quarter.
“We are now a producer!” Cowden said.
At its current share price, that might be a catalyst for increased corporate interest too.
Also in the February 15 - 21, 2012 edition
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- Getting past first base
- Indaba's sweet timing
- ASIA DESK
- Ampella boss stands his ground
- AustMETS
- Vale sponsors Australian mining supply mission
- COAL
- Mozambique aspirations
- NuCoal expands Hunter Valley foothold
- CONTRACTING
- Top-to-bottom surge by mining service firms
- EUROPE
- EU risk undermines gold merger
- EVENTS
- ASX plans Perth mining conference
- Craig Oliver Award nominees announced
- EXPLORATION
- Minnow takes aggressive line on copper project
- Sheffield looks for luck of Iluka
- Silver lining in IOCG hunt
- Straits focus turns to exploration
- Weighing up Sandfire odds
- FINANCE
- IFM momentum challenged by power cut
- New name, direction
- FROM THE CAPITAL
- Weaknesses show up in results from market leaders
- GOLD
- ‘Best looking gold project I’ve come across’
- HEAVY METAL
- Hunter investment bonanza continues
- INSIGHT
- Australia's productivity conundrum
- INTERCEPTS
- ACCC steps in
- African Queen generates targets
- Alara confirms Saudi project base
- Alpha to look for coal in Tasmania
- Altona to buy China coal properties
- AmmLeach may work at Turkey zinc project
- AngloGold lifts dividend
- ARM, Anglo to test Modikwa ruling
- Atlas restructures
- Ausenco wins key Barrick deal
- Azure finds new El Tecolote zone
- Barminco wins Dugald River race
- BHPB raises $US5.25B
- Blackwood resource boost
- BMA strike starts
- Bokoni mine stoppage
- Botswana Diamonds raises funds
- Broker cool on Emeco Chile move
- Bullant shuts down
- Caledonia agrees Zim mine divestment terms
- Canwealth looks to extend James Bay reach
- Cape Range backs off Camarines Norte
- Capital expects Mayfield boost
- Carrick making ground at Kurnalpi
- Carrick posts Lindsay's reserve
- Central Asia producer switch imminent
- Chanach hopes rise
- Coal contribution grows for Vale
- Coalbank to speed Blackall drilling
- Coalworks steps out
- Contractors win nuclear plant work
- Conway to start bulk sampling
- Crusader moves to Borborema BFS
- Decmil wins more Pilbara work
- Dollar forces TEMCO shutdown
- Downer wins more Karara work
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- Elsienora doesn't disappoint Balamara
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- Extorre abandons finance deal
- FMG profit surge
- Focus extends Treasure map
- Forte confirms extensions
- Free State mining right lodged
- Gindalbie lands 1.48Bt resource
- Gold lift for Pan African
- Goldcorp posts record earnings
- Gryphon grabs share of Papillon
- Horseshoe funding to reboot exploration
- Jatenergy receives Atan Bara licence
- Jatenergy wins maiden coal sale
- Kingsgate to post Teterita resource upgrade
- Lachlan Star books profit
- Landdrill lands orders
- Large diamonds found at Droujba
- Magma resource boost
- Mbalam gets high-level help
- Medusa says Co-O doing ok
- Metals Finance enters Homeville JV
- Midas looks to extend reach
- Minas Chanca review starts
- Minera starts Ollachea drive
- Minotaur raises Mutooroo sights
- More Copper Bore targets
- More good news for Haranga
- Natasa eyes London listing for Alberta Coal
- New gold target at Marda
- Newcrest receives TSX approval
- NEWS DESK: Hecla silver boost
- Noble closes on first Bibiana pour
- Noble secures final Bibiani funding
- OM output could be derailed
- Ortac to update Sturec model
- Orvana gold reserve boost
- OZ to sell Okvau
- Papua Mining takes AIM
- Paragon recovers big whites
- Paulsens resource lift
- Peak gets 100% of Zari
- Pluton boosts reserves
- POSCO to explore with Legend
- Rio appoints e2v to drive power switch
- Rio to switch on Auto-trains
- Santander potential evident
- Solid Energy hit by closure
- Springsure coal haulage deal
- Steel production down worldwide
- Strategic values magnetite
- Study supports Tembang plan
- Talang Santo mining back on track
- Talvivaara steps up
- Taurus delisting
- Touchstone finds Colombia gold
- Tulla's job now to right Norseman
- Twin Hills starts to dry out
- Vale lifts iron sales
- Vale's broken records
- Ventnor sharpens Thaduna picture
- Wildhorse aims for Mecsek Hills restart
- Yukon court to approve merger
- ZYL expands team
- MINING IT
- Wiggins Island selects Active ERM
- PROJECT WATCH
- Kaolin prospect looks good on paper
- RUSSIA
- Barrick to divest Russian miner stake
- SOUTH AMERICA
- Lachlan’s star still rising
- VIEW FROM THE WEST END
- Just chatting