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Metallon Gold production up by 6%

Business
ZIMBABWE’s largest gold mining group, Metallon Gold, has recorded a 6% growth in gold production for the first half of the year to 48 143 ounces as compared to 45 524 ounces due to high production at How Mine.

ZIMBABWE’s largest gold mining group, Metallon Gold, has recorded a 6% growth in gold production for the first half of the year to 48 143 ounces as compared to 45 524 ounces due to high production at How Mine.

BY TARISAI MANDIZHA

How Mine contributed 26 320 ounces of gold in the first half of the year from 25 745 ounces in 2014.

In the period under review, the group gold production for second quarter 2015 was 23 759 ounces and the first half 2015 gold production was 48 143 ounces.

In a statement accompanying the group first half production and corporate updates, Metallon Corporation chief executive officer Ken Mekani said the increase in output reflected the company’s strategy of ramping up existing operations to full capacity.

“Production during the second quarter was below budget mainly due to equipment breakdowns, which have mostly been addressed.

“The How Mine replacement of the 25 Level loading stations had been planned and we are confident the mine will be able to make up this production in the second half of the year,” he said.

“Throughout 2014 and 2015 Metallon has successfully repaid a significant portion of our debt facilities and interest payments. During this volatile gold price environment, our focus remains on the repayment of debt and outstanding creditors and this will continue as production increases over the next 12 months.”

Mekani said the commissioning of new projects was slightly behind schedule, but the company was looking forward to commencing production at Mazowe Sands Retreatment Plant and reopening of Redwing Mine in the fourth quarter of 2015.

He said such major investment projects “will lead to significant local job creation and long-term social-economic growth, demonstrating Metallon’s commitment to reinvesting in Zimbabwe”.

The group said over the last two years Metallon has reduced bank loans to $15,6 million from $24,2 million to $15,6 million of which $3,8 million was interest repayments.

In the period under review, the group obtained an additional bank debt facility of $5 million, bringing the total current debt position to $20 million.

The group however said in this volatile gold price environment, Metallon’s main focus was to maintain a low debt position and negotiate down the current cost of interest repayments.

The group said Metallon continues to engage with financial institutions for capital expenditure funding and was confident that funding at significantly lower cost would be available in the next few weeks.