Overview
Galena Mining Restricted (ASX:G1A, Galena) owns 60 % of the Abra base metals mine situated within the Gascoyne area of Western Australia – dwelling to one of many largest lead and silver deposits on the planet, set to supply the highest-grade, cleanest lead focus out there globally. The corporate is capitalizing on its Tier 1 asset in a Tier 1 jurisdiction, strengthened by and leveraging partnerships with Japan’s largest zinc and lead smelter, in addition to with one of many high base metals buying and selling companies on the planet.
The corporate additionally owns one hundred pc of the Jillawarra Challenge, which covers 76 kilometers of strike extension on to the west of Abra. The Jillawarra Challenge accommodates a number of large-scale analogous exploration targets together with the Woodlands Advanced, Quartzite Nicely and Copper Chert areas.
Galena’s main partnerships embrace Toho Zinc (TSE:5707), Japan’s largest zinc and lead smelter, and IXM SA, one of many world’s high three base metals buying and selling companies. Toho supplied AU$90 million undertaking fairness and has a long-term offtake settlement to buy 40 % of Abra’s manufacturing; whereas IXM has entered right into a 10-year take-or-pay offtake contract to buy the remaining 60 %.
The corporate’s administration group brings a long time of expertise within the mining and base metals trade and has a confirmed observe report of success all through all phases of exploration, from growth to manufacturing.
In November 2020, Galena put in place US$110 million in finalized debt services organized by Taurus Funds Administration. The services embrace a US$100-million undertaking finance facility plus a US$10-million value overrun facility.
The undertaking finance facility consists of a 69-month time period mortgage primarily to fund capital expenditures for the event of Abra. Key phrases embrace:
- Fastened curiosity of 8 % each year on drawn quantities, payable quarterly in arrears.
- 1.125 % web smelter return royalty.
- No obligatory hedging.
- Early compensation allowed with out penalty.
- 15 quarterly repayments commencing on 31 December 2023.
The price overrun facility is a mortgage to finance recognized value overruns on the undertaking in capital expenditure and dealing capital. Fastened curiosity of 10 % each year applies to quantities drawn beneath the associated fee overrun facility.
The Taurus debt services have been absolutely drawn and are secured in opposition to Abra Challenge belongings and over the shares that every of Galena and Toho personal in Abra.
Firm Highlights
- Positioned to appreciate worth for shareholders:
- Abra mine building accomplished in December 2022, on time and on funds.
- First in-specification focus cargo achieved in March 2023.
- Abra is among the largest and cleanest lead-silver deposits on the planet (high-grade, high-value focus 1/tenth typical deleterious components).
- Thrilling exploration floor and identified copper-gold mineralisation under the Abra lead-silver deposit.
- JV between Galena (60 %) and Japan’s largest zinc and lead smelter Toho Zinc (40 %) underpins lengthy mine life (10+ years) in an thrilling new mineral province in Western Australia.
- Galena has a 10-year offtake settlement with IXM, one of many world’s largest base metals merchants.
- Annual steady-state steering:
- Mill throughput of greater than 1.3 million tonnes each year (Mtpa), producing +90,000 tonnes each year lead and +550,000 ounces each year silver.
- Annual common lead C1 direct money value of US$0.55 to US$0.65/lb.
- Annual common EBITDA (earnings earlier than curiosity, taxes, depreciation, and amortization) of AU$90 million to $100 million.
- The Abra mine is situated within the Gascoyne Area of Western Australia, dwelling to one of many largest undeveloped lead deposits on the planet and the highest-grade lead focus out there, globally.
- The Abra mine carries a JORC mineral useful resource estimate (July 2023) of 16.2 million tons (Mt) at 7.3 % lead and 19 grams per ton (g/t) silver within the indicated class, and 16.9 Mt at 6.9 % lead and 15 g/t silver within the inferred class.
- Abra has been named the world’s lowest-cost major lead mine by Wooden Mackenzie, a number one mining analysis and consultancy group.
- US$110 million of undertaking financing debt services from main mining-specialist lending fund Taurus Funds Administration.
- Galena’s administration group brings a long time of expertise within the mining and base metals trade and has a confirmed observe report of success all through all phases of exploration, from growth to manufacturing.
Key Tasks
Abra Mine
The Abra Mine is a 60:40 three way partnership between Galena and Japanese lead producer Toho Zinc. It’s a globally important lead-silver undertaking situated within the Gascoyne area of Western Australia, between the cities of Newman and Meekatharra roughly 110 kilometers from the DeGrussa copper mine owned by Sandfire Assets (ASX:SFR).
Abra Mine Web site Location
The Abra mine carries a complete JORC mineral useful resource estimate revealed in July 2023 of 33.4 Mt at 7.1 % lead and 17 g/t silver (5 % Pb cut-off grade), which incorporates 0.3 Mt at 7.3 % lead and 32 g/t silver within the measured class; 16.2 Mt at 7.3 % lead and 19 g/t silver within the indicated class; and 16.9 Mt at 6.9 % lead and 15 g/t silver within the inferred class.
All permits for the Abra undertaking have been obtained from the suitable Western Australian regulatory our bodies. The undertaking can be topic to an current land use and heritage settlement with the Jidi Jidi Aboriginal Company. The Abra property is well-serviced by public roads and highways, and all the mandatory infrastructure has been developed to move lead-sulphide concentrates to the Port of Geraldton, Abra’s major export port.
Abra Processing Plant
A remaining funding choice to finish the Abra Challenge was made in June 2021 and building was accomplished in December 2022, on time and on funds. A number of essential milestones had been achieved within the March 2023 quarter, together with the commissioning of the processing plant, first ore fed into the plant and first focus produced in January 2023.
The processing plant achieved in-specification focus manufacturing from the graduation of focus manufacturing and throughout the 2023 calendar 12 months, 967,622 tons of ore was processed and 61,800 tons of lead focus was produced.
The corporate is at the moment endeavor detailed technical work to develop an up to date manufacturing plan for 2024 manufacturing targets and steering.
Jillawarra Challenge
Exploration and progress related to the one hundred pc Galena-owned Jillawarra Challenge covers a extremely potential elongated tenement package deal protecting roughly 76 kilometers of steady strike size and 508 sq. kilometers on to the west of Abra.
The Jillawarra Challenge hosts many base metals prospects which have had restricted shallow exploration work accomplished because the Nineteen Seventies by varied firms. The majority of the exploration work was accomplished by Amoco, Geopeko, Apex Minerals and Abra Mining Restricted. The work accomplished up to now has recognized a number of base metals, manganese and gold prospects, of which the Woodlands Advanced, Quartzite Nicely, Manganese Vary, Copper Chert, TP and 46-40 had been topic to early-stage exploration. A lot of the drilling accomplished inside the Jillawarra Challenge investigated the primary 100 to 200-meter depth which, primarily based on current data of Abra, could not have reached the depths required.
The primary potential hall inside the Jillawarra Challenge lies inside the margins of the Quartzite Nicely – Lyons River Fault zones which prolong east-west alongside all the tenement package deal. Additionally, the contact between the dolomitic sediments of Irregully Formation and the decrease sedimentary unit, polymictic conglomerate, of the Kiangi Creek Formation represents an essential marker for the prevalence of base metallic mineralisation as seen at Abra.
The Woodlands Advanced is an Australian scaled geophysical anomaly which represents a major goal space with the anomaly being 12 kilometers lengthy and 10 kilometers vast. Restricted work and technical analysis have occurred at Woodlands which presents an excellent alternative for Galena within the years to come back. Ongoing geophysical and exploration drilling will happen concurrently with the event of Abra. The data and understanding of Abra because of its growth will present a major exploration benefit at Jillawarra.
Administration Workforce
Tony James – Managing Director and CEO
Tony James is a mining engineer with over 30 years’ mine working and undertaking growth expertise predominantly in Western Australia. He additionally has earlier expertise at managing director stage of three ASX-listed firms with two of these firms efficiently guided by way of a merger and takeover course of benefiting the shareholders. He has a robust mine working background (examples being the Kanowna Belle gold mine and the Black Swan nickel mine) and a robust feasibility examine / mine growth background (examples being the Pillara zinc/lead mine and the Trident/Higginsville gold mine).
Adrian Byass – Non-executive Chairman
Adrian Byass has greater than 25 years of expertise within the mining trade each in listed and unlisted entities globally. He has served as non-executive and government director of varied listed and unlisted mining entities, which have efficiently transitioned to manufacturing in bulk, treasured and specialty metals world wide. He at the moment serves on the boards of ASX gold, base metals and lithium firms.
Neville Gardiner – Non-executive Director
Neville Gardiner has over 30 years of expertise advising boards on mergers and acquisitions,
fairness and debt capital markets, transaction structuring, capital allocation and sophisticated
industrial preparations. His profession achievements embrace senior government management
roles in Deloitte, Torridon Companions, and at Financial institution of America Merrill Lynch, the place he spent 5 years as the top of its Australian Pure Assets Workforce. He additionally spent 9 years with Macquarie Financial institution, the place he had accountability for its Western Australian Company Finance enterprise and its Australian Oil and Fuel Advisory enterprise. He has a really robust expertise and data base related to the assets sector in Australia.
Stewart Howe – Non-executive Director
Stewart Howe has greater than 40 years of expertise within the international useful resource trade together with 18 years in mining. He was chief growth officer at Zinifex, one of many world’s largest miners and smelters of lead and zinc. He led the spin-off of Zinifex’s smelters to create Nyrstar NV, and restarted the event of the Dugald River mine.
Craig Barnes – Chief Monetary Officer
Craig Barnes has over 25 years of expertise in senior finance and monetary administration inside the mining trade and beforehand the monetary companies trade. He has appreciable expertise in undertaking financing, mergers and acquisitions, joint ventures, treasury and implementation of accounting controls and techniques.
Earlier than becoming a member of Galena, he held the place of CFO of Paladin Vitality for greater than 5 years and was a part of the group that efficiently accomplished the corporate’s capital restructuring in 2018. Previous to that, he was the chief monetary officer of DRDGOLD (NYSE and JSE:DRD) and its affiliated subsidiaries for greater than seven years.
Aida Tabakovic – Firm Secretary
Aida Tabakovic has over 11 years of expertise within the accounting occupation, which incorporates monetary accounting reporting, firm secretarial companies, ASX and ASIC compliance necessities. She has been concerned in itemizing a number of junior exploration firms on the ASX and is at the moment firm secretary for quite a few ASX-listed firms