Highlights From Focus Minerals 2012 Annual Report.
Here are the Highlights From Focus Minerals (FML) 2012 Annual Report which I currently have in My Portfolio.The full report can be viewed on the ASX.
• Completed takeover in October 2011
• Invested $17M into the development of the Laverton operations opening up 3 new operating areas to turnaround production
• Turned around operations to produce 86,673oz of gold for the financial year
• Already reduced cash operating costs to approx. $1,203/oz from $1,544/oz at takeover
• Delivering sustainable operating cost savings across the operations
• Funded turnaround internally from cash balances
In October 2011 Focus completed the acquisition of Crescent Gold Limited and the Laverton Gold Operations. The Laverton operations had been previously starved of funds and were an underperforming asset. Focus completed the takeover for $59M in scrip and over the remaining nine months of the financial year injected $17M in working capital to transform the operating fortunes of Laverton and deliver 86,673oz of gold for the financial year.
The transformation of the operations was all funded internally from Focus Group cash balances and saw a number of operating changes undertaken. Initially the business increased the digging fleet from two to four, opening up three new operating areas across the tenement holdings: The Apollo complex situated on the highly prospective Chatterbox Shear; The Fish/Lord Byron area; and Mary Mac Hill located on the Central Shear close to the centre of Laverton.
This investment initiated a strong turnaround in production. The business increased from mining 200,000 tonnes per quarter to in excess of 500,000 tonnes per quarter to produce circa 25,000oz of gold per quarter. Operationally, Focus has also been able to leverage its technical expertise to deliver improved planning and development work across the Laverton operations through the year, quickly reducing the cash operating costs in Laverton from of $1,540/oz at the time of the takeover to $1,203/oz by the completion of FY12.
Having enabled the business to get back on its feet, the operation has now bedded down, improving contractor efficiencies and consolidated on two digging fleets to sustain development. During FY13 there will be a strong focus on exploration to continue to unlock production opportunities across the operations and there will be a strong development focus on the Burtville area.