IRC Ltd reduced iron ore concentrate production by 6.5%
In Q4 2023, the mine experienced problems with ore quality and equipment preparation.
IRC Ltd, the owner of the assets of Petropavlovsk-Chernaya Metallurgy LLC (developing the Kimkano-Sutarskoye deposit in the Jewish Autonomous Region), announced its results for Q4 2023.
The company reduced its iron ore concentrate production by 6.5%, to 578.7 thousand tons, year-on-year. The reason for the reduction was problems with ore quality, as well as unsatisfactory work of the contractor against the background of low equipment readiness.
Sales volume decreased by 8.3% year-on-year, to 587.4 thousand tons. The company notes that sales were low due to production problems.
At the same time, the average annual utilisation of the Kimkano-Sutarsky mine remained at 78% despite ongoing issues with ore quality and contractor performance. As a result, production volumes in 2023 amounted to 2.467 million tonnes (-4%), and sales volumes were 2.529 million tonnes (-1.5%).
The cash balance increased to $52.8 million compared to $47.8 million as of September 30, 2023. Net debt decreased to $14.9 million from $22.6 million. This was facilitated by an increase in positive net cash inflow of $15.2 million.
Reference
IRC Ltd is the main beneficiary of Kimkano-Sutarsky GOK LLC, located in the Jewish Autonomous Region. The mining and processing plant was created on the basis of the Kimkansky and Sutarsky iron ore deposits, located 4 and 10 km, respectively, from the Izvestkovaya station in the Oblutchensky district of the Jewish Autonomous Region.