What NQ Minerals does
NQ Minerals PLC (LON:NQMI) is a project developer and mining company with a focus on Australian mining assets.
The company is led by a team of experienced mining and mining finance industry professionals, including chief executive Walter Doyle, an experienced venture capitalist who was responsible for the resurrection of Sirius Minerals PLC (LON:SXX).
The principal asset is the Hellyer mine in Tasmania. This was commissioned at the turn of 2018/2019, when it delivered a maiden cash flow of £3.2mln from the production of three types of concentrate, lead, zinc and precious metals.
NQ also owns the Ukalunda project in north Queensland, on which it has identified 33 prospects for follow-up work, including the Sunbeam mine, for which it has secured a mining permit.
At SquarePost, also in north Queensland, NQ has identified both breccia and vein-hosted mineralisation.
NQ has invested £300,000 into Tasmania Energy Metals. NQ is investigating an integrated facility for the treatment of precious metals produced at Hellyer with further exposure to metals used in the Electric Vehicle battery market.
How is it doing
NQ commissioned the base metal flotation circuit at Hellyer in January, with revenues in the six months to June of £14.2mln.
Production over the half-year amounted to 10,164t of lead, 7,341t of zinc and 46,863t of pyrite.
Metallurgical recovery has improved since the half-year with lead averaging 41.9% in September and zinc 42.2%.
NQ made some modifications to the processing plant during July and August, which has improved consistency and boosted production volumes.
“Combined plant and dredge tonnes in September have exceeded management expectations at this stage, with significant improvements in the recoveries of both lead and zinc over H1.”
NQ will also process the precious metal tailings at four different dumps at Hellyer that contain an estimated 700,000oz old and 32m oz silver.
Losses in the six months to June were £17.9mln (£9.4mln) and debt £65.6mln.
What the boss says: Brian Stockbridge, chairman
"The company is also pleased to report that it is in advanced discussions to refinance its early-stage debt which reflects Hellyer's transition to an operating status with strong cash flows,"
- Debt refinancing package
- Battery metals initiative with TEM
- Production and recoveries at Hellyer continue to improve
- Precious metal production from tailings at Hellyer