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

Hellyer acquisition caps off ‘important’ first half for NQ Minerals

Hellyer fell into NQ’s control after it agreed to buy Keen Pacific – the former owner – for A$20mln back in April
Hellyer is host to 796,000 ounces of gold and more than 30mln ounces of silver

It was a transformational first half of 2017 for NQ Minerals PLC (NEX:NQMI) after it completed the acquisition of the Hellyer gold mine in Tasmania.

That addition should turn NQ into a near-term revenue generating company, which is what the board has been after for a long time.

READ: Hellyer deal sets NQ Minerals on path to production

Hellyer fell into NQ’s control after it agreed to buy Keen Pacific – the former owner – for A$20mln back in April.

The mine is host to 796,000 ounces of gold and more than 30mln ounces of silver in tailings.

NQ has already kicked off work at Hellyer and, assuming all goes to plan, NQ could well be in production in 2018 and generating very sizeable sums of cash as well.

The resource, although not world-beating, is situated in waste dumps, which means there are no mining costs and much of the crushing and milling has already been done.

That allows projected gross margins to run at around 56% across a ten-year mine life, on overall revenues exceeding A$1.3bn.

NQ is also looking at listing on AIM at some point in the not too distant future, and said “intensive work continues in this regard”.

Given the costs associated with the acquisition, losses in the six months widened to £5.79mln (H1 2016: £174,000).

View full NQMI profile View Profile

NQ Minerals Timeline

Related Articles

lithium rock
September 19 2018
Preliminary feasibility study (PFS) completed, definitive feasibility study (DFS) scheduled for delivery by the end of 2018.
October 05 2018
Northwest Nonferrous Australia Mining sold the project to De Grey in a transaction for which it will pay another $10.4 million in cash and $3 million in shares.
teal mining
July 26 2018
Arrowhead has valued Intermin shares’ total fair market value at $103.18 million to $109.54 million.

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