Phu Kham Copper-Gold Operation

The Phu Kham Copper-Gold Operation is PanAust's flagship Operation.

The Operation is located within PanAust's Phu Bia Mining Contract Area in Laos approximately 140 kilometres north of Laos' capital city, Vientiane. The significant cash flow generated by the Phu Kham Operation has supported PanAust’s growth while contributing to a strong balance sheet.

The Operation comprises an open-pit mine feeding ore to a conventionally milling and flotation operation which produces a copper and precious metals concentrate for export to custom smelters mainly in Asia. The concentrate contains approximately 23 per cent copper, 6 grams per tonne (g/t) gold and up to 47g/t silver.

Eighty per cent of Phu Kham's concentrate is trucked in covered containers to the ports of Vung Ang or Hon La in Vietnam (approximately 650 kilometres from the Operation). The remaining 20 per cent trucked to Sriracha Harbour in southern Thailand (approximately 1,000 kilometres from Phu Kham) for export to smelters mainly in Asia.

2018 production

Above budget production and cost performances were achieved at Phu Kham in 2018 with annual copper in concentrate production of 83,680 tonnes (t).

The 2018 C1* and all-in sustaining costs (AISC**) after precious metal credits was US$1.32/lb and US$1.74/lb copper respectively.

Mining operations performed well as ore continued to harden with the multi-stage deepening of the open-pit. Total ex-pit material mined was 52 million tonnes (Mt) and included 12Mt ore. Close to 19Mt of ore was milled.

Copper recovery averaged 81.4 per cent, attributed to improved grade and ore quality, in conjunction with further advances in automated process control and operating practices within the grinding and flotation circuits.

Outlook

The Phu Kham Ore Reserve supports a mine life of approximately three years from the end of 2018.

For the most up-to-date information about the Phu Kham Operation, see the quarterly reports and other statements on the Company Announcements page.

 

*Brook Hunt convention for the reporting of direct costs comprising: mine site, product transportation and freight, treatment and refining charges and marketing costs; based on payable metal content after by-product credits

**AISC reported are the C1 cost plus royalties, allocated corporate support charges, shared services costs, sustaining capital; lease principal and interest charges; and deferred mining and inventory adjustments capitalised