Zimbabwe-focused gold miner New Dawn Mining on Monday reported record consolidated gold sales for its fiscal first quarter, on an over 89% year-over-year increase in production.
For the three months to December 31 2011, the company reported consolidated gold production of 9 095 ounces, or 8 399 ounces attributable to New Dawn, as compared to consolidated gold production of 4 808 ounces a year ago, or 4 577 attributable ounces.
In the prior fourth quarter ending September 30 2011, consolidated gold production was 8 814 ounces, or 8 212 attributable ounces.
Consolidated gold sales for the latest first quarter totalled $15,44 million, or $14,24 million attributable, at an average sales price per ounce of gold of $1 684.
This compares to $6,46 million in consolidated gold revenue, or $6,18 million attributable, a year ago, at an average sales price of $1 370 per ounce of gold — representing a whopping 139% increase on a consolidated basis.
From the previous fourth quarter, consolidated gold sales rose nearly 10%, the company said.
New Dawn now holds a 100% interest in Central African Gold (CAG), furthering its goal of becoming a mid-tier gold producer of assets in Zimbabwe.
Central African has significant interests in five principal gold properties in the country, which include the Dalny Mine, the Golden Quarry Mine, the Venice Mine, the Camperdown Mine and the Old Nic Mine.
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When New Dawn acquired an initial interest in CAG in June of 2010, all the mines were on care and maintenance, but since the company invested heavily in these operations, five of the sites have now resumed operations and have a combined milling capacity of 2 000 tonnes per day.
Aside from the Central African assets, New Dawn owns and operates 100% of the Turk and Angelus Mines in the upper south-west area of Zimbabwe that have the potential to produce an estimated 35 000 to 50 000 ounces of gold per year.
Attributable ounces or sales reflects New Dawn’s net ownership interest in each producing mining property for the respective period, after adjusting for other minority interests.
At December 2011 month-end, an additional 2 337 ounces of gold awaited export documentation for sale in South Africa, and will be included in January 2012 sales, the company said.
With December 2011 total gold production of 3 252 ounces, equivalent to annualised gold production of 39 024 ounces, the company has achieved its production target of 38 000 to 40 000 ounces of annualised gold production within its projected timeframe, despite four public holidays in Zimbabwe last month, New Dawn said.
The company will report its full financial and operating results for its fiscal first quarter on or before March 15 2012.
New Dawn is targeting 60 000 ounces of gold production by the end of 2012 and 100 000 ounces by the end of 2014.
During 2011, the company made significant operational progress, it said, including arranging for continuous electrical supply contracts for power at Turk and Angelus, the Dalny and the Golden Quarry mines.
New Dawn also raised $7,44 million of new equity to support operations and fund the integration of its Central African Gold assets.
