Kingston Resources Ltd (ASX:KSN) has notched another milestone with gold sales from the Tailings Project at Mineral Hill in central New South Wales reaching a monthly record of 1,776 ounces in March, bringing third quarter 2023 financial year gold sales to a record 4,431 ounces.
Lower costs, higher returns
All-in-sustaining costs (ASIC) decreased a further 12% in March, month-on-month, to A$1,432 per ounce, while the average price received increased 7% to A$2,865 an ounce.
In recent weeks, the company has seen a reduction in the cost of some key consumables at the operation.
As a result of this strong production performance, the company’s cash balance has risen from $6.8 million at the end of December to $9.5 million at the end of the March quarter – that’s 40% higher than at the end of the previous quarter.
The company is benefiting from strong production, which is unhedged, and softening inflation at a time of near-record Australian dollar gold prices. All this provides substantial leverage for Kingston shareholders.
Setting up for long-term growth
Kingston Resources managing director Andrew Corbett said: “The significance of the Tailings Project in providing us operating cash flow and setting us up for long-term growth at Mineral Hill is obvious from this performance.
“Being a low-cost gold producer in the current climate is a huge advantage, allowing us to improve our cash position while also meeting site capital needs, covering all corporate costs and continuing to move Misima forward.
“This financial strength gives us an excellent platform for growth.”