Wiluna has ended the financial year on a high note, reporting gross profit and cash flows from its Wiluna gold operation in WA of $21 million and $34 million.

This was underpinned by gold production of 52,000 ounces at an All-In Sustaining Cost (AISC) of $1,794/ounce and June quarter production of 12,524 ounces at an AISC of $1,371/ounce – with 12,782 ounces of gold sold at an average price of $2,651/ounce.

 “We are pleased with these numbers, not only for the quarter but also for the full year, with the strong improvement in operating cash flows and underlying earnings, as well as the continued strengthening of the company’s balance sheet,” Wiluna Mining (ASX:WMC) executive chair Milan Jerkovic said.


Maximising operating cash flow

“The focus of the 2021 Financial Year as we transition through our Stage 1 development program was always on maximising operating cash flow,” Jerkovic said.

“We aimed to mine and process the most profitable ounces to add valuable cash flow to assist with funding our Stage 1 development and Stage 2 feasibility costs.

“This focus is reflected in the June quarter results.

“All in all, it was a solid end to the financial year, and we remain on track to becoming a significant gold producer in a Tier 1 jurisdiction over the next three years.”


Staged development

 Key development activities during the year included the commencement of the Stage 1 development – with concentrator construction now 65% complete, underground mine development well advanced and the resource/reserve drilling for Stage 2 feasibility due to be completed by August 2021.

The company aims to build a 2.5Moz measured and indicated resource to enhance mine planning and long-term option studies, which could occur sooner rather than later given that current measured and indicated resources already stand at 2.14Moz.

The feasibility study is expected to be completed in Q1 CY 2022 and is funded by the company’s recent US$42 million loan from Mercuria.


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This article was developed in collaboration with Wiluna Mining Corporation, a Stockhead advertiser at the time of publishing.

 This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.