The Western Areas Ltd (ASX: WSA) share price is up more than 2% after providing an update about its Odysseus mine.
Western Areas update
Today, Western Areas provided an update about the construction of its activities at its Odysseus mine located at the Cosmos operation.
The de-watering and rehabilitation of the main access decline has been completed. There has been commencement of the main Odysseus decline and return airway full-face development.
The underground ventilation infrastructure has advanced, with completion of the DORA vent rise and the mid-shaft access.
The headframe and winder refurbishment and associated assets is ongoing in South Africa with the expected shipping date in the second quarter of FY21, which is within the timelines.
The life of mine pump stations have been commissioned and the reticulation to the water management ponds have been completed. The power plant upgrades are ongoing to accommodate growing power demand.
All key personnel for ongoing construction activities are now employed at the site. It has upgraded 310 village rooms out of 540 which are available for mining and construction crews.
Western Areas Managing Director Dan Lougher said: “We have reached a critical milestone with the firing of the full-face development of the Odysseus decline, which is now heading across to the orebody. A significant amount of preparation and support work has been delivered across the site to reach this milestone. We now have our eye on the delivery of the first ore tonnes mined from underground in the first quarter of FY22.”
Summary
Western Areas is making good progress with its mine. I’m not an expert on mining businesses, so I’m not sure if it’s a great time to buy. It’s a cyclical business, the best time to buy shares is at the bottom of the cycle.
I’d prefer to buy ASX growth shares with consistent growth like Pushpay Holdings Ltd (ASX: PPH).
