Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Frontier Mining on-track towards becoming mid-tier copper producer

Frontier Mining on-track towards becoming mid-tier copper producer

Frontier Mining (LON:FML) is entering a "very exciting period" with full commissioning of its Benkala copper plant in Kazakhstan scheduled for next month or November this year.

Funding has now been secured for the project's transition into a producer and full production is anticipated in 2012, said the firm.

In its interim results statement, frontier's chief executive Erlan Sagadiev was upbeat about the company's position.

"We are confident that Frontier is fully on-track towards its goal of becoming a mid-tier copper producer and has a solid project pipeline for future growth."

In the six months to June 30 this year, revenue was US$1.2 million (2010: nil) with a net operating loss of $2.8mln (2010: US$11.1mln).

Operating expenses of US$1.7 million were in line with previous years (2010: US$1.5mln).

The finance costs of US$1.6mln for the period (2010: US$0.6mln) were the main contributor to the operating loss, said the company.

After the period end, the company secured the full funding for Benkala's move into production - achieved primarily through the sale of the Maminskoye gold deposit in Russia to Stanhigh Limited of Cyprus for $37.45 million in cash, it said.

Progress on the bankable feasibility project for Benkala has been substantial and it is close to being published.

At the Baitemir project on the Naimanjal licence in Kazakhstan, 10,000 metres have been completed and the firm has started another 10,000 metre programme. Frontier is confident that Baitemir will be a substantial copper asset.

It is working to further define the mineral inventory and anticipating a JORC compliant resource in 2012. The company also believes there is potential to use the other deposits within the Naimanjal licence area as satellite feeders to Baitemir.

At Koskuduk, also on Naimanjal, in the first six months of the year, 735 ounces of gold and 2,555 ounces of silver were produced generating $1.2 million in revenue.

Operations at Koskuduk continue but Frontier's strategy is now firmly focused on copper, bringing the Benkala mine into production and continuing exploration at Baitemir, it said

View full FML profile View Profile

Frontier Mining Timeline

January 23 2015

Related Articles

copper symbol
“Asiamet’s strategy is on the near-term development of BKM and BKZ and then the development of Beutong, which is, in our view, the key asset of most interest, which will place Asiamet as a major copper player”
August 30 2018
Metminco offers a portfolio of Columbian exploration assets with significant upside
Exploration is ongoing across a swathe of attractive properties in Nevada

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use