The Serrote copper/gold mine and processing plant, in Brazil, is operating at full production capacity, setting the scene for strong production in 2023.
Construction of the mine was completed in 2022. Serrote produced 19 800 t of copper and 9 000 oz of gold contained in 84 500 dry metric tonnes of concentrate. C1 cash costs were $1.85/lb in 2022.
With commercial operations now completed, Serrote is set to produce between 23 500 t and 25 000 t of copper and 9 000 oz of gold at a C1 cash cost of $1.50/lb and $1.60/lb net of by-products.
“2022 was a transformational year for Mineração Vale Verde (MVV). Having completed construction within schedule and below budget we successfully ramped up to deliver a strong operational and financial performance. Exceeding nameplate capacity, while maintaining a leading safety record was a significant achievement,” said Appian Capital Brazil CEO Paulo Castellari.
During 2022, the MVV made eight shipments of concentrate to its offtake partners, one above budget. This resulted in revenue of $155-million with average realised commodity prices of $3.71/lb copper-equivalent.
Earnings before interest, taxes, depreciation and amortisation and capital expenditure for the period were $60-million.
Following strong copper prices, MVV initiated a hedging programme to secure forward pricing of $4.17/lb for a portion of the payable copper produced through the next 12 months to January 2024.
The strong financial performance resulted in a notable cash generation and $24.5-million of the project financing principal and interest repayments in 2022.
The successful ramp-up will enable the start of completion tests to be finalised in early 2023.