Me­tal­lon gold out­put up 18 per­cent in Q3

Chronicle (Zimbabwe) - - Business Chronicle - Oliver Kazunga

LEAD­ING gold pro­ducer, Me­tal­lon Cor­po­ra­tion has seen its out­put in­creas­ing by 18 per­cent to 26 622 ounces in the third quar­ter of 2016.

The group, owned by South African busi­ness­man Mzi Khu­malo op­er­ates four gold min­ing as­sets — How Mine (the flag­ship as­set), Ma­zowe Mine, Shamva Mine, and Red­wing Mine. In a state­ment ac­com­pa­ny­ing its unau­dited re­sults for the third quar­ter, the group said:

“The group’s gold production for Q3 2016 was 26 622oz, an 18 per­cent im­prove­ment on the pre­vi­ous quar­ter (Q2 2016: 22,565). The in­crease in gold production in the third quar­ter was due to im­prove­ments in per­for­mance at How, Ma­zowe and Red­wing mines.” Production for the year to date is 69,680oz. “The Group C1 costs were $737 per ounce and allin-sus­tain­ing costs (‘AISC’) were $960 per ounce for Q3 2016.

“This is an im­prove­ment of four per­cent and one per­cent re­spec­tively when compared to Q2 2016 (Q2 2016: C1 cost $764 and $971). C1 costs im­proved due to in­creased production and cost ef­fi­cien­cies as a result of new equip­ment and in­creased ca­pac­ity,” said Me­tal­lon.

It said AISC were im­pacted by ma­jor re­pair and re­newal work at Shamva Mine as well as ex­pen­di­ture on group ex­pan­sion projects, which will sig­nif­i­cantly in­crease fu­ture gold production.

Dur­ing the pe­riod un­der re­view, devel­op­ment me­tres drilled were 4 494, a 14 per­cent in­crease on 3 871 me­tres drilled in the pre­vi­ous quar­ter.

Group production fore­cast for 2016 is es­ti­mated at 102 000oz due to de­lays in the con­struc­tion of the new pro­cess­ing plant at Ma­zowe Mine and ramp up at Red­wing Mine.

The group’s chief ex­ec­u­tive of­fi­cer Mr Ken Mekani com­mented: “Me­tal­lon de­liv­ered an im­pres­sive per­for­mance in Q3 2016 with gold production in­creas­ing 18 per­cent and C1 costs re­duc­ing four per­cent compared to the pre­vi­ous quar­ter.

“Th­ese ex­cep­tional re­sults are due to im­proved production across our mines and the result of in­creased in­vest­ment in our op­er­a­tions over the last year. This achieve­ment demon­strates the fu­ture po­ten­tial of our as­sets in Zim­babwe. Me­tal­lon is now com­mis­sion­ing the New Pro­cess­ing Plant at Ma­zowe in the last quar­ter of this year and will be fo­cused on im­prov­ing production at Shamva and Red­wing mines.

“Fu­ture ex­pan­sion plans are now un­der­way across the Group which will de­liver in­creased growth in 2017 and be­yond.”

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