Production at Metallon Gold grew by 18% to 26 622 ounces for the third quarter of this year, up from 22 565 recorded the previous quarter due to improvement in performance at How Mine, Mazowe and Redwing mines.
BY TARISAI MANDIZHA
Production for the year-to-date is 69 680 ounces.
In a statement accompanying the financial statement, the group said production forecast for 2016 is expected to be approximately 102 000 ounces. The company, however, said there have been delays in the construction of a new processing plant at Mazowe Mine and ramp up at Redwing Mine.
“Metallon delivered an impressive performance in Q3 2016 with gold production increasing 18% and costs of operating (C1)falling by 4% compared to the previous quarter. These exceptional results are due to improved production across our mines and the result of increased investment in our operations over the last year. This achievement demonstrates the future potential of our assets in Zimbabwe.
“Metallon is now commissioning the new processing plant at Mazowe in the last quarter of this year and will be focused on improving production at Shamva and Redwing Mines. Future expansion plans are now underway across the group, which will deliver increased growth in 2017 and beyond,” the company’s chief executive officer, Ken Mekani said.
In the period under review, the group C1 costs were $737 per ounce and all-in-sustaining costs (AISC) were $960 per ounce for the third quarter 2016. C1 cash costs expenses not related to revenues or profits.
The group said this was an improvement of 4% and 1% respectively when compared to second quarter 2016 C1 cost $764 and $971.
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In the period under review, C1 costs improved due to increased production and cost efficiencies as a result of new equipment and increased capacity.
AISC were impacted by major repair and renewal work at Shamva Mine, as well as expenditure on group expansion projects, which will significantly increase future gold production.
In the period under review, development metres drilled were 4 494, a 14% increase on 3 871 metres drilled in second quarter 2016.
Metallon owns and operates four gold mining operations and has a world class gold resource of over 8,3Moz. How Mine near Bulawayo, is the flagship operation and produces over 55% of production. Shamva and Mazowe Mines, both located near Harare, each produce approximately 20% and Redwing Mine, near Mutare, reopened in November 2015 and is currently ramping up production.
Gold production in 2015 was 97 000 ounces and the budget for 2016 is 102 000 ounces.
