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Blackham Resources delivers strong production growth and reaffirms June half year guidance

Management aims to convert more of its 6.5 million ounces of gold resources to reserves.
Picture of gold pour
Net debt has been reduced to $10.4 million, and the group has cash and bullion of $29.6 million

Blackham Resources Ltd (ASX:BLK) has delivered quarter-on-quarter production growth of 38% for the March quarter at its Matilda-Wiluna gold operation in Western Australia.

The company set three consecutive months of gold production records in the March quarter with total production of 20,631 ounces leaving it well-placed to meet guidance.

Management reaffirms guidance

Blackham has confirmed prior June half-year guidance in a range between 40,000 ounces and 45,000 ounces.

Management is forecasting all in sustaining costs (AISC) for the period to be in a range between $1,100 and $1,200.

The average realised gold price for the March quarter was $1,669 per ounce.

The company will benefit from forward sales of 29,417 ounces at $1,725 per ounce over the next nine months.

Financial strength returning

There was strong shareholder support for a $36 million capital raising in January.

This along with increased gold sales has strengthened the company’s financial position.

Net debt has been reduced to $10.4 million, and the group has cash and bullion of $29.6 million.

Exploration strategy

Reserve definition drilling will continue this quarter as Blackham looks to increase its gold reserves from 15 million tonnes at 2.5 g/t for 1.2 million ounces.

Management aims to convert more of its 6.5 million ounces of resources to reserves.

Blackham has committed to significant ongoing exploration drilling including the acceleration of this reserve conversion work.

The company is also conducting exploration drilling targeted at new oxide deposits to extend the current free milling mine life.

Over the last 12 months, Blackham has added reserves at a cost of less than $22 per reserve ounce.

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