Production from the Nullagine project in Western Australia during the December quarter totalled 22,503oz at an all-in-sustaining-cost of $1175/oz, generating free cashflow before financing costs of $5.2 million.
Debt was cut by $2.4 million to $3.7 million.
The company didn’t provide production guidance for the quarter or year ahead, but expects to next week once further assessment is completed.
Millennium’s general manager of corporate development Peter Cash suggested the company was keen to ensure the accuracy of its guidance given the “history of the company”.
Millennium encountered mining and reconciliation issues (among other problems) last year and 2014, leading to an existential crisis as the company’s cash position became “very fragile”.
Equity raised and improved operating performance subsequently alleviated the situation.
With operating performance now back on track, Millennium’s “absolute priority” is increasing mine life from the current position of about 16 months to 3-5 years.
Cash indicated the company no shortage of brownfield opportunities to achieve this, with exploration having been previously curtailed by debt covenants.
Consideration of dividends will likely follow additional mine life being outlined.
Shares in Millennium were up about 7% to 4.5c, capitalising the company at nearly $33 million.
