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Tietto Minerals attracts Chinese bidder, tables impressive quarterly

Updated: Apr 16

Tietto Minerals has doubled production at its Abujar gold mine. Credit: File

Tietto Minerals has experienced a remarkable September quarter to more than double its gold production at the company’s Abujar gold project in Côte d’Ivoire Africa that showed a stellar free cash result for the quarter of $28m.

The project delivered 33,753 ounces of gold for the quarter compared to just 15,592 for the June quarter and notably has attracted a takeover bid from a Chinese firm.

Abujar is West Africa’s newest gold mine and Tietto celebrated its first gold pour in January this year albeit it has experienced teething problems – until now.

Margins for the quarter were also remarkable with production costs coming in at just $51.9m compared to gold sales of $89.4m.

The June quarter was a different story with production costs totalling 37.5m against sales of $41m.

The latest result has boosted Tietto’s bank balance to a healthy $29.7 million in cash and cash equivalents.

Tietto received an unsolicited takeover offer from its second-largest shareholder in Zhaojin Mining for 100 per cent of the company’s issued shares. The offer was tabled at a price of 58 cents per share, representing a premium to the gold miner’s previous closing price of 42.5 cents of more than 35 per cent.

Over the past three months, we have produced 33,750oz gold. Production is still suffering from the lack of waste stripped during the preproduction period and the ongoing wet season. Our mining contractor has responded strongly and mobilised three additional production excavators and the wet weather is coming to a close. We anticipate higher mining rates for the last quarter of 2023 and increased gold production. Tietto Minerals managing director and CEO Matt Wilcox

Earlier this month the company revealed a new nine-year life-of-mine plan for its Abujar gold mine after updating its mineral reserves.

Tietto outlined new plans for the mine to operate from next year to 2032 and management has estimated the average yearly production at a serious 170,000 ounces of gold.

The plans show a production head grade of 1.04 grams per tonne gold, assuming an increased plant throughput of 5.5 million tonnes per annum by 2025 for total production of 1.53 million ounces of gold.

Tietto also predicts a strip ratio of 5.74 and measured and indicated resources that comprise 75 per cent of life-of-mine production, with inferred resources comprising the remaining 25 per cent. The total proved and probable ore reserves are now estimated at a respectable 36.7 million tonnes at 1.15g/t gold for 1.36 million ounces, which is a sizeable increase on the previous numbers published in a 2021 definitive feasibility study.

Management says while gold production at Abujar continued to ramp up in July and August, it dipped to 10,962 ounces of gold in September, lower than forecast, as rain substantially reduced scheduled contractor mining volumes.

Tietto has climbed a difficult mountain by trailblazing its way into production in Africa – a task that has eluded others.

In the early days of production it suffered setbacks courtesy of COVID and equipment that did not arrive on time however with a $28m bottom lin

e for the quarter and a cashed-up Chinese suitor in tow, Tietto is back – with a bang.

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