Mincor Resources has received payment for its first parcel of nickel ore to be processed through BHP’s Kambalda nickel concentrator in Western Australia.
The $25.3 million represents sales receipts for 90 per cent of the imputed nickel concentrate production up to May 31, 2022 (less processing and freight charges) with the balance to be paid in August, under the terms of the agreement with BHP Nickel West.
Sales for the month of May have been derived from the steady build-up of development ore stockpiles over a number of months.
Mincor continues to be focused on its ramp-up activities at both mining centres, with a key operational milestone achieved last week with the first stope opened up at the Northern Operations.
Importantly, with the receipt of this first tranche of sales revenue, Mincor has delivered the restart of its Kambalda Nickel Operations for an actual peak funding outlay of $98 million, about 8 per cent below the previously disclosed figure of $107 million.
The company said it was an outstanding achievement given that project development had been executed during the challenges posed by the global COVID-19 pandemic and its flow-on impacts.
Major capital works are now almost complete, with the Cassini accommodation village expected to be ready early in the December 2022 quarter. At this stage, the total cost of the accommodation site is estimated to be marginally lower than the $15 million guidance.