New Century upbeat on zinc

NEW Century Resources is heading into 2021 in a strong position as the Century operation in Queensland delivered its 500,000th tonne of zinc concentrate since restarting in late 2018.
New Century upbeat on zinc New Century upbeat on zinc New Century upbeat on zinc New Century upbeat on zinc New Century upbeat on zinc

NCZ port manager, Greg O’Shea, and Carpentaria Shire Councillor, Peter Wells, standing with the MV Wunma containing the 500,000th zinc concentrate tonne produced

The company posted September quarter EBITDA of A$13.2 million and expects a material increase in the December quarter due to a 12% rise in the average zinc price to US$1.19 per pound.

New Century has executed zinc hedging, via put contracts, providing a guaranteed floor price of $1.20/lb for 100% of March quarter sales and 50% of June 2021 quarter sales.

The company retains full exposure to any upside in the zinc price.

"The milestone of producing 500,000 tonnes of zinc concentrate is a significant achievement for the company and testament to the efforts of our team on site, as well as our strong culture and partnerships with stakeholders throughout the region," New Century managing director Patrick Walta said.

"In addition, New Century's hedging program has successfully locked in the current buoyant market conditions for the remainder of the financial year, while also providing full exposure to further zinc price improvement.

"The Company sees strong potential for zinc price upside, given the continued demand from growth within China and the likely near-term improved demand around the world as infrastructure-focused government stimulus packages are rolled out.

"This demand is in contrast to continued global supply challenges, with traditional underground miners facing additional operational difficulties in improving production while also implementing social distancing and COVID-19 mitigation practices."

New Century will release its full quarterly results near the end of January.

The company raised $14.4 million late last year at 15.5c per share.

Shares in the company have since risen as high as 26.5c and last traded 2% lower at 23.5c, valuing it at just under $285 million.