Quarterly Report to 31 March 2020

Our latest ASX announcement, Quarterly Report to 31 March 2020, is now available for viewing.

SAVANNAH

• Safety – sustained improvement in performance with no Lost Time Injuries recorded and appropriate measures taken in response to the COVID-19 pandemic
• Total Development Progress – 989m, a 9% decrease on previous quarter
• Mine Operating Strategy – underground mining contract awarded to Barminco which commenced operation on 1 March with >80% of Savannah underground workforce transferred to Barminco
• Ore Milled – 119,401t at 0.87% Ni, 0.51% Cu and 0.04% Co; tonnes 9% lower, Ni grade down 11%, Cu grade down 11% on previous quarter; lower grades were a function of stope performance and sequence for the Savannah remnant ore reserves
• Metallurgical Recoveries – 83.4% Ni, 94.0% Cu and 88.6% Co
• Metal Production – 861t Ni, 578t Cu and 46t Co in concentrate; Ni down 17%, Cu down 17% on previous quarter
• Concentrate Shipped – 11,624dmt, down 27% on the previous quarter; shipment departed on 3 April 2020 with approx. 4,850 dmt
• Raise Bore – the Savannah North surface ventilation raise is halted with 352m of excavation remaining. A revised development strategy has been adopted for completion of the raise via a mid-raise access being driven from the Savannah decline to facilitate recommencement of reaming from a safe position above the zone of instability
• Savannah North Stope Production – The first block of Savannah North stope ore of approximately 2,500t was drilled and blasted during the quarter with processing of this parcel occurring immediately after the quarter
• Temporary suspension of Operations – decision taken in mid-April to temporarily suspend operations due to significant operational uncertainty related to a number of factors including, but not limited to COVID-19 travel restrictions to the Kimberley region
• Guidance withdrawn – as a result of the operational suspension, production and cost guidance has been withdrawn

CORPORATE

• Equity Raising – completion of retail component of accelerated non-renounceable pro-rata entitlement offer to raise a total of $32.7 million in January (accelerated institutional component completed in December)
• Lapse of IGO Offer – off-market takeover offer from IGO Limited lapsed on 17 January
• New Loan Facilities – $10.0 million facility with Macquarie Bank Limited (used to close out commodity and currency hedge book) and unsecured $8.0 million facility with major shareholder Zeta Resources entered into
• Sale of Horizon Gold shareholding – $9.2 million generated from the disposal of the shareholding in Horizon Gold (with $3.4 million subject to shareholder approval)
• Group Cash – $7.6 million in available and restricted ($180K) cash at quarter end, with $6.5 million in additional available liquidity from shipment 168 which departed 3 April 2020 and a further $8.0 million of liquidity from the Zeta facility (announced 3 April)
• Third Party Discussions – discussions ongoing with a range of third parties regarding a variety of corporate and funding options