[miningmx.com] — GOLD One International on Monday reported a 23% increase in quarterly production to 35,128 ounces – which exceeds the company’s guidance of 34,000 ounces.
This brings year-to-date production to 89,827 ounces and means the company is on track to meet its production target of 120,000 ounces for 2011.
“With the excellent production output from Modder East and continued increasing operational flexibility, the company has continued to build on the solid foundation that it has established throughout this year. For the December 2011 quarter, 33,000 ounces of gold production is being targeted, which will result in the achievement of our annual gold production target of 120,000 ounces,” said Gold One president and CEO Neal Froneman.
The significant increase in gold production, combined with higher gold prices, resulted in group gold revenue for the quarter under review of R425.6m while group cash operating costs were R127.3m, resulting in a positive operating cash flow of R298.3m.
The cash cost for the group was $478/oz with a total cost of $744/oz recorded during the quarter.
Gold One ended the September quarter with R342.1m of cash on hand and gold receivables including restricted cash of R35.8m.
The company made progress on both the Rand Uranium acquisition and the Jintu transaction during the September 2011 quarter.
Shareholders voted in favour of the injection of at least A$150 million in new capital by way of issue of shares to the Chinese consortium participating in the Jintu transaction and the company has taken over daily management of Rand Uranium.
The R1.47bn Rand Uranium acquisition is still subject to the necessary consents being obtained from the Department of Mineral, which the company believed would be received by the end of the year.
