GWR Group Ltd (ASX:GWR) (FRA:UK4) continued to ramp up operations at its flagship C4 Iron Ore Project in Western Australia and exported a total of 116,209 wet metric tonnes (WMT) during June.
This is the first time two shipments have been exported in the same month since the commencement of production earlier this year, which represents a major milestone for the project.
With improvement in crushing capacity along with the addition of a large haulage contractor, GWR is on track to export 1 million tonnes by December 2021 and expects to ship at least twice per month (totaling around 110,000 tonnes) with a target of five shipments every two months, totaling 275,000 tonnes.
Meanwhile, the company also continued to progress the demerger of its gold assets by way of the proposed listing of Western Gold Resources Ltd (ASX:WGR) with an Initial Public Offer (IPO) underway.
Ramping up exports
In June, the company exported a total of 116,209 WMT tonnes ore to its offtake partner Hong Kong Trader, Pacific Minerals, at an average realised Platts Iron Ore price of US$214/t.
The company, which started production at the start of 2021, finished the financial year by exporting 328,262 WMT comprised of 298,537 tonnes of high-grade lump and 29,725 of fines.
GWR chairman Gary Lyons said: “With the financial year coming to a close, I am very proud of the entire GWR team and our Alliance partners PRG, with the many challenges we have and continue to overcome, it was a fantastic achievement to export more than 325,000 WMT of Iron Ore mined from our flagship C4 Iron deposit.”
Solid start of new financial year
The company also confirmed that it has secured its first ship for July, the MV QC Matilde is due to start loading at the Port of Geraldton.
GWR is currently assessing long-term infrastructure initiatives to significantly increase the volume of high-grade iron ore mined and transported and will be issuing an announcement on this.
Lyons said: “The first month of the new financial year is shaping up to be a rewarding one for GWR shareholders, not only have we already secured our first ship for the month of July, which is due to commence loading at the Port of Geraldton between 16th and 20th July 2021.”
Proposed demerger
The company is also in the process of demerging its Wiluna West Gold Project to focus more on its revenue-generating Iron Ore operation.
The proposed demerger of its Wiluna West Gold Project has attracted considerable demand, with the lead managers GTT Ventures Pty Ltd and Lazarus Corporate Finance Pty Ltd raising the maximum $7,000,000 at an offer price of $0.20 per share for the Western Gold IPO.
According to the company, its shareholders, who are registered on the record date of July 9. 2021, will get 1 WGR share for every 8.38 GWR shares, as a part of the planned in-specie distribution in WGR.
“In addition, GWR shareholders still have the opportunity to gain additional exposure in the Western Gold Resources Ltd (ASX:WGR) Initial Public Offer that is expected to list on the ASX on or around July 19, 2021.”