C1 costs have decreased in Q1 2013 by $0.33 per lb compared to Q1 2012 despite higher mining costs, which include drilling and blasting, higher processing costs and a lower cobalt by-product credit. These increases were outweighed by lower refining charges which reflects a different sales mix to offtakers, and a decrease in administration cost. In Q1 2012 the C1 cost benefited from the use of low-cost sulphur.
Sales revenues for Q1 2013 increased by 61% compared to Q1 2012. An increase of 88% in contained nickel sales volumes was offset by a 3% decrease in payability and a 12% decrease in realized nickel price. The increase in sales volumes in Q1 2013 reflects that the operation was still ramping up to design capacity in Q1 2012 and agreements with offtakers were being finalized.
Outlook
Production in 2013 is expected to be between 31,000 and 35,000 tonnes of nickel.
Crushing plants and beneficiation have operated well in Q1 2013 and operations in these areas are expected to continue to show improvements in plant utilization on the production and maintenance fronts with various initiatives being implemented from April to September 2013. The sulphuric acid plant will undergo a 14-day planned maintenance downtime in April to coincide with statutory bi-annual inspections on pressurized vessels. Various smaller planned works on the remainder of the plant, aimed at improving throughput, will be conducted at the same time. Nickel production however is expected to remain in line with budgeted numbers for the month and the full year.
Following the April planned downtime, the sulphuric acid plant is expected to continue to have stable operations with efficient use of power distribution, significantly reduced diesel fuel consumption and associated savings. Taking advantage of lower cost sulphur opportunities with associated logistical improvements will remain a focus for Ravensthorpe.
-------------------------------------Kevitsa Nickel-Copper-PGE(1) Operation Q1 2013 Q4 2012 Q1 2012--------------------------------------------------------------------------Ore tonnes milled (000's) 1,512 1,413 -Nickel ore grade processed (%) 0.2 0.2 -Nickel recovery (%) 64 59 -Nickel production (tonnes) 2,049 1,870 -Nickel sales (tonnes) 1,015 792 - -Copper ore grade processed (%) 0.3 0.3 -Copper recovery (%) 80 84 -Copper production (tonnes) 3,181 3,448 -Copper sales (tonnes) 2,734 2,805 - -Gold production (ounces) 2,619 2,172 -Platinum production (ounces) 6,833 6,123 -Palladium production (ounces) 5,732 5,419 - -Nickel cash costs (C1) (per lb)(2) $5.29 $6.37 -Nickel total costs (C3) (per lb)(2) $6.57 $7.19 -Copper cash costs (C1) (per lb)(2) $1.94 $1.75 -Copper total costs (C3) (per lb)(2) $2.75 $3.06 ---------------------------------------------------------------------------Sales revenues 39.8 36.5 -Gross profit 15.6 6.4 -EBITDA(2) 19.9 11.2 ---------------------------------------------------------------------------(1) Platinum-group elements ("PGE").(2) C1 and C3 costs and EBITDA are not recognized under IFRS. See"Regulatory Disclosures" for further information.
