Beacon Hill Resources amps up activities at Minas Moatize mine

Mining company Beacon Hill Resources unveiled on Tuesday expansion plans at its Minas Moatize coking coal project in Mozambique.

Mining company Beacon Hill Resources unveiled on Tuesday expansion plans at its Minas Moatize coking coal project in Mozambique.

A revised strategy is expected to deliver an estimated $80m in capital expenditure and a run rate of 2.8m tons per annum run-of-mine by the end of the year.

Over the past quarter the group focused on producing high value coking coal shipments and upgrading its wash plant. The plant assembly is near completion and commissioning is expected to begin towards the end of this February.

Beacon also made progress on securing an allocation on the rail link to the port of Beira. Minas Moatize Limitada entered into a Rolling Stock Heads of Agreement to lease locomotives and rail wagons on the Sena Rail Line.

"With rail access, new rolling stock and a competitive cost of production, the Minas Moatize Coking Coal mine remains capable of producing healthy cashflow even at today's coking coal prices," Chairman Justin Farr-Jones said.

During the quarter optimisation work continued and a second trial shipment of 18,576 tonnes of thermal coal was dispatched from the port of Beria.

The company also announced a 31% increase in the Joint Ore Reserves Committee Resource at Minas Moatize to 86.8Mt.

The period saw the appointment of Farr-Jones as Chairman and Rowan Karstel as Managing Director who are both working to improve operations and reduce costs.

"Whilst a lot more remains to be done to restore shareholder value, I am optimistic that Beacon Hill has made significant progress with its new management team in a very short space of time," Farr-Jones said.

Shares fell 5.0% to 2.85p at 10:23 Tuesday.

RD

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

“Joke” cryptocurrency dogecoin goes to the moon. What’s going on?
Bitcoin

“Joke” cryptocurrency dogecoin goes to the moon. What’s going on?

Dogecoin – a cryptocurrency created as a joke – has risen by more than 9,000% this year alone. Saloni Sardana looks at how something that began as an …
19 Apr 2021
China owns a lot more gold than it’s letting on – and here’s why
Gold

China owns a lot more gold than it’s letting on – and here’s why

In a world awash with money-printing, a currency backed by gold would have great credibility. And China – with designs on the yuan becoming the world’…
21 Apr 2021
Why investment advice could be about to get a lot cheaper
Investment strategy

Why investment advice could be about to get a lot cheaper

Vanguard, the world’s second-biggest asset manager, is launching its own cut-price financial advice service. It’s something the industry badly needs, …
20 Apr 2021