[miningmx.com] — GOLD One International’s second-quarter production
has come in lower than guidance, mainly due to labour-related disruptions at its
flagship Modder East mine.
However, the group succeeded in increasing production from the first quarter.
The group on Monday reported total output of 62,904 oz for the quarter, up 2%
from the first three months. Production for Modder East was 22% (7,507 oz) lower
than forecast, primarily due to the illegal industrial action at the beginning of June.
“This negative variance resulted in the group not achieving its forecasted
quarterly production of 69,000 ounces,’ Gold One said. “With various contingencies
in place, however, Modder East is continuing to operate profitability, albeit at lower
levels of gold production.’
The two-year turnaround programme at the Cooke Underground Operations was
continuing to make good progress, said the group, as gold production increased
quarter-on-quarter by 12% to 26,041 ounces, which was marginally below the
operations’ forecast of 27,000 ounces.
Production at the Randfontein Surface Operations increased by 42% quarter-on-
quarter to 10,370 ounces, which was 2,370 ounces (30%) higher than forecast
largely due to the increased volumes and grades that were delivered to the plant.
“The loss of production as a result of the illegal industrial action at Modder East, and
the subsequent dismissal of a large majority of the operation’s workforce, is highly
disruptive and disappointing,’ said CEO Neal Froneman. “We, however, maintain our
position and continue to manage the short-term impacts with a focus on creating
long-term stability.’
