Kagara Ltd is a leading Australian mining company (ASX ticker: KZL) with growing copper, zinc-lead and nickel operations in North Queensland and Western Australia and a strong project development and exploration pipeline.
The Company’s North Queensland copper and zinc-lead operations and exploration tenements cover an area of nearly 2,000 square kilometres extending over 500 km from west of Charters Towers in the South to the north-west of Cairns in the North. It has three operating provinces (Northern Chillagoe, Central Mt Garnet and Southern Thalanga provinces) including three treatment plants and three underground mines and one open pit mine.
Kagara has a 5-Year Strategic Growth Plan based on growing zinc production to 120ktpa and copper production to 30ktpa by FY15; a $50 million exploration program to establish an 8-12 year production outlook for each of its operating provinces; and structuring the business to become an ASX-100 company.
The immediate focus of this 5-year Strategy is to increase zinc production to a targeted level of 53-59kt for FY12 (FY11: 40.1kt) and maintain copper production at a targeted level of 17-20kt (FY11: 22.5kt), while reducing cash operating costs and protecting and enhancing margins – underpinned by a strong and well managed project pipeline.
“Building the capacity of the organisation, delivering on our operational commitments, striving for continuous improvement, together with a strategic review of all Kagara assets will lead to a more focused and results-oriented business into the future. Kagara has an enviable suite of tenements and operational assets throughout North Queensland which will carry Kagara towards its goal of being a major ASX-listed based zinc and copper producer.”
Elsewhere in its base metals portfolio, Kagara has completed a pre-feasibility study on the world-class, potentially Tier One Admiral Bay zinc-lead-silver-barite project in Western Australia. The Company is currently seeking equity or joint venture partners to underpin an externally funded Bankable Feasibility Study.
A strategic review of the Company’s assets has determined the Forrestania Nickel Project in Western Australia, including the operating Lounge Lizard nickel mine, to be non-core. Kagara has initiated a process to divest these assets.
Kagara Ltd's portfolio of listed investments include a 61.9% stake in the ASX-listed gold developer Mungana Goldmines Limited (ASX: MUX), which is developing the world-class Red Dome gold project in North Queensland.
The Company also has a strategic relationship with Monto Minerals to jointly explore and develop base and precious metals over Monto’s 500 square kilometres of highly prospective tenements located around Herberton in North Queensland.