UNITY Mining has pinned its hopes on the Dargues Gold Mine project at Majors Creek.
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The company’s 2014 financial report does not make for happy reading.
It posted a $52 million loss in the 2013-14 financial year, which followed a $26m loss in 2012-13.
Unity’s main source of income, the Henty Gold Mine in Tasmania, is reaching the end of its life.
In fact Unity expects to end operations there by the end of next year, which is why approval for the modifications to the Dargues project are so important to the company.
It would need $70 million to get things under way at Dargues. At the end of September Unity had just $11.9m in the bank.
Its shares on Wednesday were less than one cent.
Independent Auditors of Unity Mining’s financial report, Deloitte, flagged “significant doubt about the company’s… ability to continue” and warned it “may be unable to realise their assets and discharge their liabilities to the normal course of business”.
The uncertainty stems from a lengthy court battle over the use of a Parkes mine for processing, plummeting gold prices, skyrocketing production costs, and Henty reaching the end of its life.
There is also uncertainty about whether the proposed modifications to the Dargues project will be approved.
There are few alternatives than what Unity has proposed at Majors Creek– cyanide is the only viable option for gold processing, and to take it offsite for processing is not cost effective.
And while the community has a bad taste in its mouth over past environmental breaches, mines do good things for communities too.
Unity has already poured thousands of dollars into the Palerang community, to soccer and rugby league clubs, to tennis courts, and more.
The mine’s more than 100 jobs is a boost which the region desperately needs.
And no matter your views, few can deny the company’s honesty.
Unity Mining, and in particular managing director Andrew McIllwain, has gone to great lengths to engage with the community on the project. No question, no matter how curly, went unanswered on Wednesday.
Having seen Unity’s Tasmanian mine and cyanide processing firsthand, I urge all residents who have any concerns about the Dargues project to attend the company’s two community information sessions next week.
As Benjamin Franklin once said, being ignorant is not so much a shame, as being unwilling to learn.
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