Red River sees revenue outflow from lower commodity prices

NEWISH base metal producer Red River Resources continues to increase production from its Thalanga operations in Queensland, with the main negative last quarter looking to be lower commodity prices.
Red River sees revenue outflow from lower commodity prices Red River sees revenue outflow from lower commodity prices Red River sees revenue outflow from lower commodity prices Red River sees revenue outflow from lower commodity prices Red River sees revenue outflow from lower commodity prices

Revenue from concentrate sales declined by nearly A$1 million quarter on quarter to $16.3 million, despite zinc, lead and copper concentrate production being up 24%, 33% and 26% respectively.

Still, earnings of $1.3 million were a $1.7 million turnaround on EBITDA in the June quarter.

Cash at the end of September totalled $17.4 million (plus $8.8 million of cash-backed security bond deposits and an undrawn working capital facility of US$10 million), versus A$20.2 million cash at the end of June.

The reduction in cash came despite broadly similar expenditure levels on capital and exploration.

The Thalanga plant processed 98,000 tonnes grading 0.3% copper, 2.2% lead, 4.3% zinc, 0.1 grams per tonne gold, and 30gpt silver.

The cash cost of payable zinc metal was US70c per pound, a 25% reduction on the June quarter.

Shares in Red River were up 2.6% to A19.5c in morning trade, capitalising the company at $95.5 million.