Mt Morgan’s mining operation located in Laverton has been suspended. The Managing Director, Leigh Junk as stepped down from his position.
The operation was suspended due to inflationary cost pressures, prompting a review of their operating strategy. By the end of June, open pit mining operations are to be suspended. Underground operations to continue until the previously developed stopes have been mined in Q1, FY23.
Once mining approvals are received, underground operations will commence in FY23 at the nearby Hub in Redcliffe.
Whilst the company attempts to move toward a leaner operating model, existing stockpiles totalling about five million tonnes will be processed. The expectation is that mining operations will recommence in the future once the company reduces its cost base.
After the $12.75 million bank debt repayment, the company forecasts cash and gold-on-hand of approximately $17 million.