I would now like to hand the conference over to Mr. Dan Clifford, Managing Director. Please go ahead.
Thank you, Amanda. Good morning, everyone, and thank you for your time. I have Ian Poole, Peter Trout, and Adam McKinnon with me as well this morning. I'll make a start with a key summary and overview of the quarterly performance. Peter will cover off asset performances. Adam will talk to both near mine and regional exploration results or progression through the quarter, and then Ian Poole to cover off corporate and financial at the end. Before I do that, I'd like to take the opportunity, particularly on the back of Mike Menzies retirement from the Aurelia Board last month, and t hank him very much for his service and dedication to AMI as one of our longest-serving director for the company. Myself, the management team, and the Board, wish him the very best in his retirement.
Just taking a full-year results and a look forward in August. I'd just like a quick recap on that last conference call, as it sets the groundwork for how this quarter has unfolded for Aurelia. On that call, we covered the on-strategy execution for FY 2020, that the NSR and margin approach for our assets would continue, and that we articulate an extension of our then stated strategy to take a look forward beyond the current assets that we operate. The key messages in that presentation, and particularly outcomes from the strategy are of sweating our assets and our infrastructure, deployment of our dollar to the highest internal rate of return through either exploration or other investments. A portfolio approach to improving the group's costs and reserve base, and a sustainable and trusted presence in all the areas we operate.
Underpinning all of those aspects of the strategy, reliability, predictability, and control remain front and center for the management team. It's with this in view, it has been a strong quarter across the board. Our health and safety result has significantly improved in the quarter with the introduction of our Aurelia Metals Safe Metals program, delivering a 32% drop in our 12-month rolling TRIFR. On an actual basis for a year to date, we have zero. That has been a remarkable turnaround for the lag indicators on the business. Production of 30,000 oz and a 9% drop in our all-in sustaining cost to AUD 1,000 an ounce, and a net cash position of AUD 104 million, and noting that that is pre the dividend that was paid during early this month, has put the company in a strong position for the rest of the year.
Progress to Kairos is on plan. Federation studies are moving well as we clearly define the hugely accretive nature of the asset. Exploration has continued to deliver for Federation and that exploration has been further extended to Kairos again, and now Great Cobar. With that being said, I will hand over to Peter to take us through the asset performances.
Thank you, Dan. Hello to everyone on the call today. I'm very pleased to report consistent quarter-on-quarter performance at both our operating assets, measured by ore mined and processed and our underlying unit costs. Our group metal production decreased slightly from the June quarter, which really reflected the mix of ore sources and the grade variability in our polymetallic ore bodies. The expected lower gold grade at Hera was partly offset by higher grades at Peak, which led to 9% reduction in quarter-on-quarter gold production. The group's all-in sustaining cost dropped to AUD 1,000 per ounce, with a strong result from Peak more than offsetting Hera's higher unit cost. In relation to COVID-19, we continue to manage actively the protocols to prevent COVID-19 transition to operations. During the quarter, we saw cross-border travel restrictions limit some of the movement of our management, technical, and operational personnel.
Whilst we experienced some minor efficiency and productivity impacts, it's more important that there'd be no reported COVID cases in the Cobar region, nor at our sites. Turning to operations and starting with Peak, we saw the continued benefit of the process plant upgrade during the September quarter, where we treated multiple copper and lead-zinc ore campaigns. We drew down on ore stockpiles that carried over from the June quarter, and in August, we achieved an annualized throughput rate just over 800,000 tons per annum through the process plant. Our ore production was sourced predominantly from the Chronos and Perseverance Deeps areas, which delivered higher NSR value ore, and also slightly less tonnage from the prior quarter.
That was about 2/3 of all development during the quarter, compared to around 12% of total development in the June quarter. That development towards Kairos reflected the majority of our growth capital expenditure in the group. The lower decline to Kairos has reached the elevation with first stope block, and the internal ramp is now advancing upwards where it will meet the upper decline, as well as continuing downwards to access new mining levels. We've also broken off to the first production level at Kairos. In the upcoming quarter, we'll be raise boring a large internal ventilation raise and remain on track for first stope production in the March quarter. Unit costs at Peak fell as a result of the mix of operating and capital development, our stoping activity levels, and also the timing of expenditure.
In particular, our sustaining capital expenditure will increase in the coming quarter as we commence a TSF embankment raise to perform statutory compliance and plant refurbishment programs as part of our budget. Peak's all-in sustaining cost decreased significantly to AUD 594 per ounce on the back of higher gold sales and lower site costs. At Hera, we're transitioning to ores that have a lower average gold grade and higher base metal grades. And this transition can be seen in the quarterly gold and base metal production numbers. The lower gold production was the main contributor to Hera's all-in sustaining costs, AUD 1,250 per ounce. Our operating focus at Hera is to maximize the ore through the mill, reduce unit costs to partially offset the lower gold revenue and the lower gold grades.
We saw the benefit of several initiatives over the September quarter. These include actively managing the number of unplanned stoppages in the process plant, blending our ores to give a more consistent base metal grade to the flotation circuit, reducing variability in the process circuit through changes in our control systems strategies, and also targeting reagent additions to reduce consumption while maintaining our metal recoveries. In terms of capital development, we continued the North Pod incline during the quarter and started development towards a drill site that will allow us to test potential mine life extension in the main southeast area. We're also establishing access to an historically [backfilled stope] that'll become a source of future waste rock backfill for all new mining areas. Moving from Hera to Federation. We've made good progress on the scoping study, with a number of work streams underway.
Our study program is being performed in conjunction with the infill drilling and environmental baseline studies, so that we scrutinize the timeline to permitting and to potential mine development to sustain production from the Hera facility. The recent study work supports an underground mine development and the recovery of both gold and base metal concentrates. Some of the initial findings include an assessment of the geotechnical conditions, which are similar to those at the Hera Mine, the presence of gold as coarse grain particles that are suited to recovery through a gravity circuit, and mineralogy work and grind size analysis that suggests separate lead, zinc, and copper concentrates can be produced from a flotation circuit, or circuits.
We'll continue to advance the various work streams at Federation over the next quarter and incorporate the findings into one or more project configurations that we can take forward to the next stage of evaluation and permitting. With that, Dan, I'll hand back over to you.
Thanks, Peter. In terms of exploration, Adam will take us through near Mine and Regional Exploration. Thanks, Adam.
Thanks, Dan. The first quarter has once again seen extensive exploration and evaluation work conducted at Federation. In August, the company released new results confirming the presence of exceptional gold grades at Federation. Intercepts including 21 m at 32 g/t gold and 45% lead, zinc, and 20 m at 17 g/t gold and 44% lead, zinc. These results are amongst the highest-grade intercepts ever drilled in the region, exceeding even the best results at the nearby Hera Mine. Intensive evaluation work is continuing into the current quarter, with follow-up drilling further testing gold, lead, zinc, copper, and silver potential of the system. Ongoing collection of geotechnical data will also occur to support mining studies for Federation.
Given the magnitude of drilling at Federation since the release of the maiden resource estimate this year, an updated resource estimate will be prepared for release, due early in the March quarter, if not earlier. Moving up to Peak now. A new drilling platform has been established in the lower Kairos decline , and diamond drilling has recently commenced there. Drilling will initially target the first high-grade stoping area at Kairos. This platform will also provide a stage for testing extensions at Kairos at depth, with the system still remaining open. Further north, a surface drilling program has now commenced at the Great Cobar deposit. Great Cobar is an important asset to the company with a current indicated and inferred resource of 4.1 million tonnes at 2.2% copper and 0.8 g/t gold.
The program will target both infill and extensional targets and will provide additional confidence to the resource estimates. Drill core, confirmatory geotechnical, and metallurgical work will also be collected. Consistent with the company's continuous disclosure commitments, we seek to provide an update on drilling results at Federation and Peak during the current quarter. Thanks, Dan.
Thanks, Adam. I'll hand over to Ian to cover Corporate and Financial, please.
Thanks, Dan. Sales for the quarter of AUD 107 million were slightly down on the AUD 112 million from the prior quarter, which is due to lower volumes, which were largely offset by higher prices achieved. The group's all-in sustaining costs are AUD 1,000 per ounce for the group during the quarter, AUD 104 less than the prior quarter, due primarily to lower mining costs and the timing of sustainable capital.
The company is maintaining its all-in sustaining cost guidance for the full year of AUD 1,500- 1,720 per ounce. The company's net cash balance at the end of September of AUD 104 million, was an increase of AUD 25 million on the June balance. This was achieved following good operating and sustainable capital performance at Hera and Peak. The company invested in growth capital of AUD 110 million, made up of the Kairos development and exploration and valuation of Federation. All in all, a very good and consistent performance for the quarter.
Thanks, Ian. Make a few closing comments before we go to questions. To add to Ian's comments, it's definitely been a strong quarter, and our guidance is reaffirmed. The cost per ton and throughput are positive and improving, particularly at Peak. Amongst those controllables, we will see variability in the four quarters in comparison to this quarter in gold and all-in sustaining costs. The controllables of cost per ton and throughput are our measure of reliability and predictability and control. A result of the head grades coming and the phasing through the year of particularly Peak again, we don't expect the December quarter to be at the levels of gold production that we've seen in this quarter. Therefore, our guidance is reaffirmed at 80,000 oz to 90,000 oz between AUD 1,500 and 1,750 an ounce. With that, I'd like to open up to questions, please, Amanda.
Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you're on a speakerphone, please lift your handset to ask your question. Your first question comes from Dylan Kenny-- Kelly from Ord Minnett. Please go ahead.
Good morning, everybody, and congrats to the team on a great result. It's really pleasing to see some momentum on safety and tons and effectively across the board. Few questions for you. Just wondering really on your last point, Dan, around grade. I know two questions for December quarter, and what that means rolling into the second half. Can you just remind us what the timing is for Kairos coming in and to what extent we can expect that grade profile to shift? We're going down from 3.9 g/t to what, 3.5 g/t , 3 g/t, and then rebounding as Kairos also starts to come in? Is that going to be more sort of 4Q update on timing?
Thanks, Dylan Kelly. Look, I think the key thing, and I'll just reconfirm what we outlined at the prior conference call during August, is that Kairos, well, we start producing meaningful volumes during late in the March quarter. Due to the early nature of that ore body, we won't see huge tonnage contributions from Kairos really until FY 2022. We're on track to be there, but we're not going to see large volume contributions from that ore body during the course of this year. In essence, when it comes to guidance or what the next three quarters look like, we are expecting reasonably steady numbers through the quarters.
Pretty simply, I look at it and take the 30,000 oz off midpoint and divide that by three with some variability around those, and that's roughly what we're expecting to be achieving for the balance of the year.
Okay, understood. Second question, just in regards to Great Cobar and the commentary that you provided in the update. It seems like you've got some easy wins there to add some mine life pretty quickly. Can you just remind us where you're at in terms of environmentals? How are you going to be accessing the ore body in terms of decline or exploration drive? Any sort of rough estimates on cost of input?
Dylan, Peter Trout here. We're currently in the process of advancing the EIS for Great Cobar. We received, earlier this year, list of criteria that we had to address, and we're well advanced in preparing our response to those. In terms of accessing Great Cobar, we're looking at an underground decline from the New Cobar complex across to the deposit itself, and then ventilation shafts through the surface to provide our ventilation and services access. I'm not in a position where I'll provide capital guidance. We've got work to do with the drilling program that Adam's outlined and also some more technical work, which allow us to look at those mining schedules and cost estimates.
Just referring back to the previous commentary around the, say, AUD 20 million exploration decline. Is that still how we should be thinking about it in terms of the first step? I'm assuming you could do most of the drilling from surface rather than run one over from, what would be Jubilee?
At this point in time, the surface drilling gives us access to results far quicker and at lower costs than extending the decline. At this point in time, there's no plan in this financial year to push ahead on the decline. We're going to get the results back from the surface programs and look at those to give ourselves the best orientation for the decline.
Okay, got it. I'll pass it along.
Thank you. Your next question comes from Brian Chu from Australian Gold Fund. Please go ahead.
Hello, Dan and team. Welcome on your rather exceptional September quarter performance. In terms of the Hera mine and the potential for development in the Federation deposit, can you remind us again on what the timeline is looking to be like for the Federation deposit starting to be feeding into the processing plant so that we can see the production increase and the cost reduce? Is that something that will be in the further foreseeable future?
Brian, the timeline that we've talked to in terms of Federation is one that's in the hands of how it is approved through state and regulatory approvals. From a start, it is usually several years, two to three years. We're now pretty much six months into the study, so we're expecting it's in that 2.5 year period. That is matching theoretically with the remaining life of Hera. Our plan at this point in time, based on the approvals timelines, is that we will see on the basis of successful studies and feeds through Federation, that it would come in towards the end of Hera's life. That's still two odd years away, 2.5 years away.
All right.
We look at that as reasonably low risk, although not without risk, in terms of getting approvals for mining operations through the New South Wales planning system. I say that I think it is low risk in that it is a satellite ore body. It is 10 km from our main infrastructure area and tailings and camp facilities. Therefore, we are really minimizing our environmental footprint as a business to bring on this asset.
One further question, if that's okay. Would it be fair to say that the Hera production that we are seeing now going to be the trend or would you be seeing bumping right ahead?
Brian, it's Peter here. I think in the results we flagged that the gold profile at Hera will move towards the reserve grade, and we'll also see higher base metals over time. I think the first quarter of this financial year is just reinforcing that, and it's accordance with what we see in the ore body and our mining plans.
Okay. Appreciate that. Looking forward to another good quarter in December. Appreciate it. Thanks.
Thank you. Once again, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. Your next question comes from Mike Millikan from Euroz Hartleys. Please go ahead.
Yeah, good afternoon, guys, and congratulations on a very good quarter. Just a very quick one from me in regards to guidance. Will you be revisiting estimates after this half?
Thanks for that, Mike. We'll continuously review what our forward projections look like, Mike.
Yep.
If and when we see through continuous disclosure the need to adjust our guidance, we'll do it then.
Okay, cool. Also just on Federation, obviously resource update coming in the March quarter. Scoping study release, is that going to be the June quarter? Is that the expectation?
In terms of Federation at this point, Mike, all the studies we are doing are quite internal. We will assess those as they go. That is effectively our timing. As to the extent and the timing of release, we will update as we progress through those studies.
Cool. Thanks very much, guys.
Thank you. Your next question comes from Mark Fichera from Foster Stockbroking. Please go ahead.
Yeah, hi guys. Good result. Just a question on the sustaining CapEx. I was just wondering in terms of guidance, obviously you did less in this quarter. I was wondering regarding the balance committed guidance, do you think it'll be sort of evenly spread over the remaining three quarters? Also, where is that going to be mostly sort of targeted?
Mark, sustaining CapEx is minimal at Hera. Most of our sustaining CapEx over the remainder of the year will be at Peak, and that will vary over the course of the remaining three quarters.
Right. Will it be consistent over the three quarters? Will there be a particular quarter where it might be more than the other quarters?
At this stage, it's quite evenly spread, Mark, in that, as Peter mentioned earlier, at the moment, a lot of our CapEx, certainly for this quarter, has been focused on Kairos, and that's been growth. But as we start to shift back from a development mix back into sustaining, and as Peter mentioned, the compliance and sustaining capital investment for the surface.
The tailing storage facilities.
Thank you. That was my point. What we will see as the year progresses is the tailing storage upgrades will come through over the next two quarters. That will keep that spend reasonably consistent.
Right. Okay, thanks.
Thank you. Your next question comes from Stuart Dodd from Renaissance Asset Management. Please go ahead.
Thank you, guys. I guess everyone else has congratulated you, so well done on the quarter. My question has actually been covered by Mark, so thanks anyway.
Thank you. There are no further questions at this time. Pardon me, we now have a question. Your next question comes from Joshua Hain from Rest Investments. Please go ahead.
Good day, Dan and team. Good results, as everyone's mentioned. My favorite question, just in terms of the rates of Peak, you've sort of left a little nugget in there that you did get to 800,000 tons kind of in August. I guess, what do you need to work on to remain at that level? Is it still development constrained, or are there other bottlenecks that need to be ironed out over time?
Pardon me, this is the operator. The speaker line has temporarily disconnected. Pardon me, this is the Operator. We now have the speakers connected. Please go ahead.
Amanda. I think we were at Stuart, I think, had a question.
I think-- it's Josh here, if you can hear me.
Hi, Josh.
I think Stuart's question, he said that had been answered, and then I jumped on, but I'm not sure you got my question. I'll repeat it, perhaps. I just asked that, given that you had dropped off a little nugget of information on Peak doing 800,000 tonnes run rate in August. Just wondering, what is the constraint going forward to maintain that level? Is it still on the development side or are there other bottlenecks within the plant that need to be worked through?
Joshua, the main bottleneck we have at the moment is just getting enough stoping areas established in the mine to deliver and use that capacity in the plant. That August run was a very good run, no changeovers between ore feeds, good reliability in the circuit, and good throughput rates. That allowed us to pull down on some accumulated stockpiles. The challenge is very much in the mine to make sure we've got sufficient stoping areas available to meet that ore demand and to do that through the switch between the copper and the lead/zinc campaigns.
Just to my benefit, who's never run an underground mine before, is there not an option to just get a few more bodies down for a short period to sort of get ahead on development? Are you constrained and I guess we've been globally constrained at the moment?
It's probably a combination of factors, Josh. We have had a shortage of operators through our mining contractor, and that has been exacerbated with the travel restrictions, meaning we cannot fly in our trucks consistently, all shifts, and that's being dealt with. Secondly, in terms of production areas, we have sufficient production areas open. It's a matter of turning around the stopes. Once we finish extracting the ore from a stope, backfilling it, and bringing the adjacent stope in line in a sequence. Where we are at the moment, we've got five or six active mining areas, and we're generally retreating from one end back along the axis. It's just cycling through those stopes and making sure we've got the backfill available. We're moving the ore out and keeping the operation in a good rhythm.
Thanks for that. Cheers.
Thank you. The next question comes from Lindsay Hayes, a private investor. Please go ahead.
Yeah. Afternoon, gents. Good result. Completely agree with everything you've said and turning this thing nicely. Well done. Last quarter, we spoke a little bit around the company target ready, and I completely agree with that. Just if you have high-level commentary you can give around over the quarter, anything you've seen that you liked out there for us to have a look at?
Well, thanks for the question. I'll keep my answers obviously internal. I'm not at liberty to really be talking about external M&A. Internally, the things that we are really seeing that are positive for the business are. Commenced the surface drilling program for Great Cobar to drive further certainty in that resource for our business. We are also starting to see emerging gold coming through the Federation deposit for the business. That is definitely getting our attention. As for external opportunities, we would inform the market if and when they come up.
Thanks.
Thank you. There are no further questions at this time. I will now hand back to Mr. Clifford for closing remarks.
Thanks, Amelia. Just in some closing comments. In summary, our strategy's on track for the year and for multiple years beyond that. The assets are running hard. Exploration is delivering. Federation is continuing to shape up well. To mirror a few words from the other speakers on the conference, all in all, it's been a great start to the year and a strong quarter. In terms of next information flow for the business, as Adam mentioned, we will be, along the continuous disclosure lines, aiming for potential exploration updates. Towards the end of the year, if not into the March quarter, a resource update for Federation and the December quarterly result. We do have our AGM on the nineteenth of November. Unfortunately, with the multiple COVID restrictions, it's a fully virtual meeting.
Those notices have been distributed to the market during the course of last week. Thank you very much, everyone, for your time, and we look forward to continuing Aurelia's progression through the course of the year. Thanks.
That does conclude our conference for today. Thank you for participating. You may now disconnect.