Group 6 Metals’ (ASX:G6M) Research and Development (R&D) tax incentive application for $14.1 million cash refund has been approved.
The $63.21 million market capitalisation company is set to receive the fund in mid-January 2024.
Group 6 Metals Managing Director and Chief Executive Officer (CEO) Keith McKnight says the R&D tax incentive scheme is a ‘powerful’ tool for Australian companies, and the refund provides a timely cash injection as production ramps up at the Dolphin Tungsten Mine.
The Dolphin Tungsten Mine has achieved a new daily ore processing record, more than 1,000 tonnes of ‘high-grade’ ore over 24 hours.
McKnight says this marks a steady climb towards its nameplate production capacity, as well as reflects the ongoing optimisation efforts of the site team and underscores the plant’s improving efficiency.
In parallel, the plant has also achieved 70% utilisation for November 2023, reflecting the increased knowledge of the plant operators.
After today’s (22 December 2023) announcement, the company’s share price has spiked 12.7% to $0.071aas of 10.50am AEDT.
McKnight adds: “The team’s dedication to stabilising operations in October led to significant improvement in November.
Plant utilisation is approaching the assumed 75%, and the recent daily ore processing record of 44 tonnes per hour in early December indicates that the process plan is on the right track.”
Further, he says the team has identified opportunities to expedite the extraction of ultra ‘high-grade’ open-cut ore, which will be available for processing in March 2024.
“This change will lower operating unit costs and mitigate potential risks to the concentrate production forecast for the next 12 months.
As we enter 2024, we are excited for the project to capitalise on this momentum and looking to achieve stable economic production by April and unlock the full potential of this exceptional high-grade ore body.”
“As we enter 2024, we are excited for the project to capitalise on this momentum and looking to achieve stable economic production by April and unlock the full potential of this exceptional high-grade ore body”
Tungsten is a critical mineral used in various applications, including steelmaking, mining, construction, electronics, and defence.
Group 6 Metals is an Australian resource explorer, developer, and producer. The company’s flagship Dolphin Tungsten Mine lies on the King Island of Tasmania.
As of 30 September 2023, the company had $3.05 million cash at hand and $1.95 million in undrawn debt facilities, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: Group 6 Metals
