[miningmx.com] — GOLD One International on Monday posted an 85% quarterly increase in gold production, following the incorporation of the Cooke underground and Randfontein surface operations in its results.
However, gold production of 60,507 ounces across all three operations were 9% lower than guidance due to a slower-than-anticipated start-up following the December festive season holidays.
“At Modder East, production losses were compounded due to both protected and unprotected industrial action and mine-wide safety stoppages imposed by the Department of Mineral Resources,” read a company statement.
Gold revenue for the March 2012 quarter amounted to $86.19m at an implied average price of US$ 1,424/oz.
This comprised 29,656oz of gold sold into the spot market at an average price of $1,648/oz and 30,851oz delivered into the Rand Uranium hedge book at an average of $1,209/oz.
The group achieved a pre-tax profit of $7m.
Gold One’s cash balance reduced by 34% during the quarter, principally as a result of it paying the first tranche due for the Rand Uranium acquisition, totalling $137m.
Cash in the bank stood at $147m.
Gold One President and CEO Neal Froneman commented: “It was disappointing that after six quarters of delivery we missed our March quarter 2012 production forecasts. However, we have addressed the underlying issues and are now well positioned to improving the efficiency and performance of our operations and to deliver on next quarter’s guidance.’
