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Vedanta announced that total production for Q3 FY2018 was 47,000 tonnes, 43% higher YoY and 10% higher QoQ.
Skorpion recorded the highest quarterly production in the last six quarters at 26,000 tonnes, 15% higher QoQ and 50% higher YoY, on account of effective treatment and blending to achieve higher and consistent plant grades. Improved refinery reliability after the Q1 FY2018 planned maintenance shutdown enabled consistent performance throughout the quarter.
BMM recorded the highest quarterly MIC production in the last four years at 21,000 tonnes, 5% higher QoQ and 36% higher YoY. This was due to higher grades driven by more accurate drilling and blasting. The plant improvement projects resulted in better than expected recoveries even at the higher grades.
At Gamsberg, we have completed 70% of pre-stripping with record 12.3 million tonnes of waste excavation in the quarter, in line with the plan. 500kilo tonne of ore stockpile is targeted ahead of first feed. Construction of the concentrator is underway, with the ball mill shell and crusher mechanical erection completed in Q3 FY2018. Power and water pipeline infrastructure is c.90% complete. Cold commissioning of the concentrator plant is expected in Q1 FY2019. First production from Gamsberg is on track for mid-CY2018, with 9-12 months to ramp up to full production of 250 kilo tonnepa.
At Skorpion, the pit 112 extension project is progressing well and waste stripping has ramped up to its peak run-rate. 25% of waste stripping has been completed by the end of Q3 FY2018 and is expected to be fully complete by Q4 FY2019. We extracted first ore in November 2017, ahead of schedule. This project will increase Skorpion’s mine life by another 2.5 years and contribute 250,000 tonnes of metal over this period.
During Q3 FY2018, the CoP including royalties was USD 1,383 per tonne, lower 6% QoQ and 14% YoY primarily driven by higher volumes, improved operational and cost efficiencies, partially offset by local currency appreciation.
EBITDA was at USD 70 million, higher QoQ and YoY, driven by higher volumes, higher LME prices and lower CoP.
Nine months FY 2018 vs. nine months FY 2017
Total production was 121,000 tonnes, 6% higher YoY mainly due to higher grades and improved recoveries at BMM, partially offset by lower volume at Skorpion due to the planned shutdown at the acid plant in Q1 FY2018.
During the period, revenue and EBITDA were 58% and 52% higher respectively, primarily on account of higher sales volumes and higher LME prices.
As guided previously, production volumes are expected to be around 160 kilo tonnepa in FY2018. The CoP for Q4 FY2018 is expected to be temporarily high at around USD 1,700 per tonne, due to re-allocation of stripping costs of Pit 112 at Skorpion as we had early ore production, and local currency appreciation.