Transcription of Finance News Network Interview with Unity Mining Limited (ASX:UML) Managing Director and CEO, Andrew McIlwainLelde Smits: Hello I’m Lelde Smits for the Finance News Network and joining me today at the Africa Down Under Conference in Perth from Unity Mining Limited
(ASX:UML) is Managing Director and CEO, Andrew McIlwain. Andrew welcome.
Andrew McIlwain: Thanks very much Lelde.
Lelde Smits: Could you start by introducing Unity Mining, what’s your focus and where do you operate?
Andrew McIlwain: Sure. Unity Mining had its origins as the old Bendigo Mining Company
(ASX:BDG), so its original focus was around Bendigo. We’re moving away from that, it’s an ASX listed company, our focus now is a small gold mine in Tasmania called the Henty Gold Mine. We also have an exposure to West Africa through shareholding in a company called GoldStone Resources. Probably most importantly in our asset base at the moment, we’ve got $44 million cash in our bank too.
Lelde Smits: Looking closer at your Henty Gold Mine, when did you acquire it and how much gold has it produced?
Andrew McIlwain: Sure, I have to admit it was prior to my involvement with Unity, but Unity bought the goldmine from Barrick (TSX/NYSE:ABX) in July 2009. So over its history it’s produced over 1.2 million ounces. Since 2009 we’ve moved that up now to producing about 50,000 ounces per annum.
Lelde Smits: And what are the highlights of the latest Resources and Reserves Report?
Andrew McIlwain: Sure, look the great thing about the Resources Report is we continue to find some new gold. We’ve also added to existing positions, but it underpins what we think is at least a five-year life with Henty’s future. Importantly that’s the longest life it’s had since it was commissioned in 1996.
Lelde Smits: So what are your plans for advancing the Henty goldmine?
Andrew McIlwain: One of the things we announced in that Reserve Report was a new surface called Read and it’s relatively higher grade. We’ve actually subsequently had some additional holes drilled into that and its open along strike, and all those good things. And we’re mining towards that and we think that’s going to be the future of the mine.
Lelde Smits: And what are Unity Mining’s production targets in fiscal 2013?
Andrew McIlwain: So in 2013 our guidance is will produce between 45,000 and 55,000 ounces, so up a little - up 10 per cent on where we were last year. You know, we’d love to be and we are always aiming to be under a thousand ounces cash producer. We include in that quite a substantial royalty, but you know at that we still make a reasonable amount of money, and a lot of that’s going back into exploration in the field.
Lelde Smits: In Australia you also have the Bendigo Goldfield in Victoria and you’ve just entered a deal with Octagonal Resources
(ASX:ORS). Why was the transaction important for Unity Mining?
Andrew McIlwain: When I came on board in December last year, one of the things was a clear view that we would move away from Bendigo. The deal with Octagonal takes away some of the material that we need to in our clean-up process, remove from site or deal with. Importantly it’s got some gold in it and Octagonal are going to recover some of that. So it’s a bit of cash for them and some cash for us as well.
Lelde Smits: Unity Mining also has a presence in West Africa, when did you enter the region and what are you working on at the moment?
Andrew McIlwain: So the mechanism was a purchase of shares in a company called GoldStone Resources who are an AIM (Alternative Investment Market) listed company. We own 34 per cent of GoldStone, myself and my CFO sit on the Board of GoldStone and they’ve got exposure in Gabon, Senegal and Ghana. The Ghanaian project is far more advanced, we’ve got a resource of about 0.5 million ounces. And the other two properties or three properties in two countries are very early stage exploration, but really high potential.
Lelde Smits: Now to your financials: What was your cash position at the end of the last quarter?
Andrew McIlwain: In the last quarter we reported a little bit over $44 million in cash in the bank. In addition to that, we still will also hold about $8 million cash in bonds for our environmental liabilities. So - but we talk about $44 million cash available.
Lelde Smits: Finally Andrew, what would you like to see Unity Mining achieve in the 2013 financial year?
Andrew McIlwain: Look it’s certainly very much on record that we’re on the hunt to buy something else. What we do or how the mechanism by which we do that, but we’re looking for gold projects. We obviously have an exposure domestically in Australia and offshore in West Africa, so they’re our sort of target regions. But we’re working very much down a path, we will announce very shortly a transaction which will be company changing for us and at least double our production position.
Lelde Smits: Andrew, thanks for introducing us to Unity Mining.
Andrew McIlwain: Thank you Lelde, it’s been my pleasure and thanks very much for the opportunity.
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