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Hambledon Mining: Q3 Production Figures: Disappointing again

Contributed by Fox-Davies Capital

Hambledon has announced its September quarter production figures. The plant milled 167,242 tonnes grading 1.35g/t gold to produce 5,875oz of gold. The plant also produced 7,469oz of silver.

Another uninspiring quarter from Hambledon. On the 13th of September guidance was the second downgrade of guidance, which originally commenced at 30,000oz. We believe that this reduced guidance will be met.

In the September quarter tonnes milled were way down on our expectations, 167kt vs 190kt due to reduced tailings dam capacity. Production was marginally ahead of our expectations due to a significantly higher mill feed grade at 1,35g/t. had all the underground ore mined, 15,125t grading 3.32g/t been processed, then production might well have bettered 6,000oz. The partial treatment of the underground ore is that it sits in the category of exploration ore and therefore

The lack of tonnes treated will ensure that the cash costs remained high for the current quarter. Our earnings estimates may be a little optimistic as we are assuming full mill tonnages in the March quarter for the next few years. Historically this has never been achieved due to weather conditions.