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DML copper production declines

In the results of its last quarterly report (Q2 FY15) of October, November and December 2014, Discovery Metals Limited’ 100% owned Boseto Copper Operation in Botswana, reflected a general decline in performance across most of the company’s metrics. The reports were provided for mining, concentrator performance, metal production and costs for the last three months of 2014.

DML experienced a 13 percent decrease in copper production compared to the 20 percent increase it had in Q1 FY15 (of July, August and September.) In Q2 FY15 the company had a quarterly production of 5,569 tonnes of copper in concentrate produced declining from the quarterly production of 6,428 tonnes copper in concentrate produced it recorded in Q1 FY15.

The company recorded a 19% decrease in material mined (7.56 Mt total material mined) compared with the 3% increase of Q1 FY15 which had 9.31 Mt total material mined. There was also a 3% decrease of High–grade sulphide recovery of 90.0% compared to 3% increase of High–grade sulphide recovery of 93.3%.   

The report states that this decline in performance was the result of progressive decommissioning of the Zeta open pit which was the operation’s main source of higher grade sulphide ore. Ore to ROM for Q2 FY15 was delivered from Zeta and Plutus Stage 1 pits during the first month of the quarter.

The main sources of ore supply to the ROM during the last two months of the quarter were sulphide and transitional ore from Plutus Stages 1 and 2 with only minor volumes of sulphide ore still coming from the Zeta pit’s “good bye cuts”.

The process plant continued to be compromised by inconsistent supply of ore during the quarter. Process performance was also affected by the treatment of significant volumes of transitional ore from the Plutus Stage 2 pit and the treatment of the low grade stockpile that had accumulated from the previous quarter.     

All pits were redesigned for the change in commodity prices and to allow the new plan to put the Operation into care and maintenance by June 2015 to be implemented. DML revealed that their focus going forward is to safely and effectively execute the new mine plan aimed at putting the Operation into care and maintenance by June 2015 to ensure that production and revenues from the Operation are maximized within this time period. Simultaneously the company will be actively pursuing the commencement of development of the Zeta underground development.

The report further state that total material movement performance was lower as a result of the loss of Excavator 903 (EX903) due to a fire incident and major component change out work on EX902 for a full month. This is said to have had negative impacts on the progress to expose additional ore faces, hence adversely affecting quality ore delivery to the ROM pad.

Copper produced for the quarter was 13% lower than 20% higher of Q1 FY15, while contained silver was 26% lower compared to 41% higher contained silver of Q1 FY15. Decreased metal production was due to reduced higher grade sulphide ore treated from Zeta as this pit was depleted and increased low recovery transitional ore as the Plutus Stage 2 pit started delivering ore to the ROM pad following waste stripping in Q1 FY15. Due to this factors concentrate production also deteriorated by 16% compared to 20% improvement of Q1 FY15.

As for the financial performance C1 cash costs per pound of copper production had a 53% increase ($2.89/lb) compared to 40% decrease (US$1.89/lb) of Q1 FY15. The report explains that the two drivers of the increase were the 13% quarter on quarter decrease in copper in concentrate produced and in Q1 FY15, $9.6m of Plutus Stage 2 overburden waste stripping costs were capitalized to the balance sheet in accordance with applicable accounting standards.

In Q2 FY15, production of the first ore from Plutus Stage 2 (169kt ore mined) was achieved and in line with the accounting standards the cost capitalized ($6.7m) during the quarter was significantly less. The $2.9m reduction in cost capitalized accounted for $0.36 of the $1.00 increase in C1 cash cost.

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China’s GDP expands 3% in 2022 despite various pressures

2nd February 2023
China’s Gross Domestic Product (GDP) expanded by 3% year-on-year to 121.02 trillion yuan ($17.93 trillion) in 2022 despite being mired in various growth pressures, according to data from the National Bureau Statistics.

The annual growth rate beat a median economist forecast of 2.8% as polled by Reuters. The country’s fourth-quarter GDP growth of 2.9% also surpassed expectations for a 1.8% increase.

In 2022, the Chinese economy encountered more difficulties and challenges than was expected amid a complex domestic and international situation. However, NBS said economic growth stabilized after various measures were taken to shore up growth.

Industrial output rose 3.6% in 2022 over the previous year, while retail sales slightly shrank by 0.2% data show that fixed-asset investment increased 5.1% over 2021, with a 9.1% hike in manufacturing investment but a 10% fall in property investment.

China created 12.06 million new jobs in urban regions throughout the year, surpassing its annual target of 11 million, and officials have stressed the importance of continuing an employment-first policy in 2023.

Meanwhile, China tourism market is a step closer to robust recovery. Tourism operators are in high spirits because the market saw a good chance of a robust recovery during the Spring Festival holiday amid relaxed COVID-19 travel policies.

On January 27, the last day of the seven-day break, the Ministry of Culture and Tourism published an encouraging performance report of the tourism market. It said that domestic destinations and attractions received 308 million visits, up 23.1% year-on-year. The number is roughly 88.6% of that in 2019, they year before the pandemic hit.

According to the report, tourism-related revenue generated during the seven-day period was about 375.8 billion yuan ($55.41 billion), a year-on-year rise of 30%. The revenue was about 73% of that in 2019, the Ministry said.

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Jewellery manufacturing plant to create over 100 jobs

30th January 2023

The state of the art jewellery manufacturing plant that has been set up by international diamond and cutting company, KGK Diamonds Botswana will create over 100 jobs, of which 89 percent will be localized.

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Investors inject capital into Tsodilo Resources Company

25th January 2023

Local diamond and metal exploration company Tsodilo Resources Limited has negotiated a non-brokered private placement of 2,200, 914 units of the company at a price per unit of 0.20 US Dollars, which will provide gross proceeds to the company in the amount of C$440, 188. 20.

According to a statement from the group, proceeds from the private placement will be used for the betterment of the Xaudum iron formation project in Botswana and general corporate purposes.

The statement says every unit of the company will consist of a common share in the capital of the company and one Common Share purchase warrant of the company.

Each warrant will enable a holder to make a single purchase for the period of 24 months at an amount of $0.20. As per regularity requirements, the group indicates that the common shares and warrants will be subject to a four month plus a day hold period from date of closure.

Tsodilo is exempt from the formal valuation and minority shareholder approval requirements. This is for the reason that the fair market value of the private placement, insofar as it involves the director, is not more than 25% of the company’s market capitalization.

Tsodilo Resources Limited is an international diamond and metals exploration company engaged in the search for economic diamond and metal deposits at its Bosoto Limited and Gcwihaba Resources projects in Botswana.  The company has a 100% stake in Bosoto which holds the BK16 kimberlite project in the Orapa Kimberlite Field (OKF) in Botswana.

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