12th Mar 2015 08:31
LONDON (Alliance News) - Aureus Mining Inc Thursday reported a narrowed loss for 2014, as it continues to progress its New Liberty gold mine which is expected to begin production in May.
For the year ended December 31, the gold miner in West Africa reported a loss of USD3.4 million, narrowed from the USD7.4 million loss reported in 2013. At the end of the year, the miner had USD33 million in cash, down from USD39.3 million a year earlier. Aureus did not reveal any other financial figures.
Aureus is solely focused on its New Liberty gold project in Liberia, which is currently being constructed and the company said all significant areas of civil works have been completed and handed over to the structural steel, mechanical, plate work and piping contractor for further commissioning, it said.
The primary and secondary crushers and the ball mine are all installed at the project awaiting power for directional testing with work focusing on the completion of the conveyor systems.
Aureus said the all in sustaining cash costs for the project have also fallen by 7% after updating the mine plan, to USD789 per ounce, adding that New Liberty's post-tax net present value once it begins production has increased to USD328 million. The miner also said the project will generate free cash flow earlier than expected which will fund its exploration programme.
The first gold at New Liberty is expected at the end of May, with the plants being commissioned during June and July.
"As we approach the end of the first quarter in 2015, our efforts last year have meant we are now on the cusp of bringing New Liberty to production with first gold scheduled for the end of May this year," said Reading.
Aureus shares were up 1.2% to 21.75 pence per share on Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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