Nevsun Resources Ltd. (TO:NSU) declared that it has sold and shipped the first zinc concentrate product from the Bisha mine in Eritrea. The 10,000 ton lot was loaded at the Port of Massawa and sailed on Sep 7, 2016. The concentrate was sold on the spot market. Additionally, the product attracted a number of offers and highly competitive treatment charges.
The Bisha mine finished the zinc flotation plant expansion in early 2016, on-time and under-budget. The plant permits Bisha to produce separate copper and zinc concentrates concurrently from processing primary ore from the Bisha open pit mine. Bisha is the only major new zinc concentrate coming to market this year and is arriving amid an environment of rising zinc prices.
Nevsun is anticipated to load additional shipments in the upcoming weeks and the commercial production is expected in the fourth quarter of 2016.
The Bisha zinc expansion project will produce on an average about 100,000 tons (225 million pounds) of zinc and 20,000 tons (45 million pounds) of copper per year, for the next 9 years from mid-2016.
There is no requirement for additional transport or shipping infrastructure upgrades since the total tonnage of copper and zinc concentrate produced is anticipated to be similar to total copper concentrate quantities in 2015. Moreover, the project has excess capacity to absorb extra feed that might come from additional deposits without yet defined mineral reserves from Bisha deeps, Harena or Asheli.
Nevsun’s shares closed roughly 2.7% lower at $3.19 on Sep 9.
Nevsun carries a Zacks Rank #2 (Buy).
Other well-placed companies in the mining space include Coeur Mining, Inc. (NYSE:CDE) , KAZ Minerals plc KZMYY and AngloGold Ashanti Ltd. (NYSE:AU) . All of them carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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ANGLOGOLD LTD (AU): Free Stock Analysis Report
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