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Kaiser locks in additional income stream in Tassie
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The West Australian
Multi-asset gold producer Kaiser Reef looks set to turn its Henty processing plant in Tasmania into a regional toll treatment hub after striking a deal to potentially process ore for fellow ASX-listed explorer, Flynn Gold.
The move provides Kaiser with a potential new low-capex revenue stream and an opportunity to eek out more income from its significant processing infrastructure in western Tasmania.
Henty is Kaiser’s production workhorse, churning out 5563 ounces of gold, up 8.4 per cent, for the June quarter.
This latest deal with Flynn Gold might seem like an aside to its own production activities, however it could be a strategically important one.
If it can get the model right, it could be a savvy way to generate additional cashflow and dominate processing in the region and Flynn Gold will be an excellent test case.