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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

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Frontier Mining Timeline

Newswire
January 23 2015

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