Gold One targets 300,000 oz for 2012

Miningmx | Tue, 31 Jan 2012 15:50

[miningmx.com] -- GOLD One International has set its production forecast for 2012 at 300,000 oz, aided by the continued ramp-up of Modder East and new contributions from its recently acquired Rand Uranium operations.

This would follow on 2011, during which Gold One produced 123,179 oz, according to quarterly figures released on Tuesday – exceeding guidance of 120,000 oz. This marks a sharp turnaround from the company’s earlier struggles to meet forecast production during the initial stages of Modder East’s ramp-up in 2010.

Modder East is earmarked to add another 30,000 oz to the company’s output in 2012, with Rand Uranium adding 150,000 oz, 118,000 oz from Cooke Underground and 32,000 oz from surface operations.

“The 2011 year was focused on production delivery,” CEO Neal Froneman said in commentary accompanying the results. “During 2012 we look forward to the continued ramp-up in production at Modder East, the implementation of a well- structured turnaround plan at the Cooke underground operations and a dedicated focus on growth on the Randfontein surface operations.”

Modder East also delivered good operational cash flows, especially in the second half of the year. For the full year, the mine achieved average cash costs of $491/oz at an exchange rate of R7.25/$. Cash on hand and receivables stood at A$76.5m at the end of the quarter, which was further bolstered by the capital injection of A$150m from the closing of the Jintu transaction.

Gold One targets cash costs of $1,000/oz for Cooke underground by 2014, excluding co-product benefits anticipated by 2015.

The surface operations are now being managed as an independent business unit. “Included in the strategic focus of the Randfontein surface operations is the Cooke uranium project, focused on the development and construction of a uranium processing plan to treat the Cooke Tailings Deposit, as well as uranium-bearing underground ore,” read the statement.

HONG KONG LISTING

Gold One said it would start to initiate a listing in Hong Kong in coming months, with the view to raise funds for further expansion.

This is expected to take place within nine to 18 months.

“To support the listing and growth in this region, Gold One is also focused on rapidly developing a presence in Hong Kong where it is currently establishing an office.”