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Hellyer acquisition caps off ‘important’ first half for NQ Minerals

Hellyer fell into NQ’s control after it agreed to buy Keen Pacific – the former owner – for A$20mln back in April
gold
Hellyer is host to 796,000 ounces of gold and more than 30mln ounces of silver

It was a transformational first half of 2017 for NQ Minerals PLC (NEX:NQMI) after it completed the acquisition of the Hellyer gold mine in Tasmania.

That addition should turn NQ into a near-term revenue generating company, which is what the board has been after for a long time.

READ: Hellyer deal sets NQ Minerals on path to production

Hellyer fell into NQ’s control after it agreed to buy Keen Pacific – the former owner – for A$20mln back in April.

The mine is host to 796,000 ounces of gold and more than 30mln ounces of silver in tailings.

NQ has already kicked off work at Hellyer and, assuming all goes to plan, NQ could well be in production in 2018 and generating very sizeable sums of cash as well.

The resource, although not world-beating, is situated in waste dumps, which means there are no mining costs and much of the crushing and milling has already been done.

That allows projected gross margins to run at around 56% across a ten-year mine life, on overall revenues exceeding A$1.3bn.

NQ is also looking at listing on AIM at some point in the not too distant future, and said “intensive work continues in this regard”.

Given the costs associated with the acquisition, losses in the six months widened to £5.79mln (H1 2016: £174,000).

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