PRECIOUS METALS

Superior beats expectations

Grade improvement and open pit contribution deliver 10% extra production

 Superior has resumed open pit mining

Superior has resumed open pit mining

It was Superior's four consecutive quarter of improving production at Plutonic.
 
Second quarter production landed at 19,356 ounces, a 28% boost over the same period in 2020, with the stoping grade landing at 3.3 grams per tonne, putting Superior on track to report an average grade of more than 3gpt for the year.
 
The company also increased its stoping material mined from 137,200t to 156,000t, while development material mined increased 56,000t, with an improved grade of 1.6gpt.
 
Mill recovery also improved 2% to 88% as a result of higher head grades due to the contribution of Plutonic East open pit ore, one of six planned pit developments.
 
The company exited the quarter with US$17.4 million in cash, slightly lower than the March quarter, but expects to start rebuilding its treasury, with $10 million in extra cashflow being added each year now the Auramet gold loan has been closed out.
 
The company's newly-appointed CEO, who recently ran the massive Lihir gold mine in Papua New Guinea for Newcrest Mining, Chris Jordaan, said changes embedded in the business last year continued to deliver rewards.
 
"The higher-grade open pit feed in conjunction with opening new high-grade underground mining fronts is expected to result in a continued improvement in our grade profile moving forward," he said.
 
Together with underground exploration success, particularly in the high-grade Baltic Gap area, he expects to see a significant improvement in cashflow over the second half of the year, and into 2022. 
 
Reserves at Plutonic are about 1.9Moz, within resources of 3Moz.
 
BMO Capital Marksts analyst Brian Quast had been predicting production of 17,000oz, and with the production beat he maintains an outperform recommendation on the stock with a price target of C$1.50.
 
Superior shares were last traded at 70c on the TSXV, valuing it at $85 million, although the stock is still trading about half its mid-2020 peak

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

editions

Mining Company ESG Index: Benchmarking the Future of Sustainable Mining

The Mining Company ESG Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Journal Intelligence Global Leadership Report 2024: Net Zero

Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

MiningNews.net Research Report 2024

Access a multi-pronged tool to identify critical risks and opportunities in Australia’s mining industry.