28th Sep 2016 11:55
LONDON (Alliance News) - Central Rand Gold Ltd on Wednesday said its loss widened in the first half of 2016, due to the cessation of open-pit mining in May which caused gold production to drop 23% from the prior year.
The miner operating in South Africa reported a pretax loss of USD2.4 million for the six months ended June 30, widened from USD1.2 million a year earlier, as revenue more than halved to USD1.8 million from USD4.4 million.
Central Rand said it ceased open-pit mining in May due to the grade variability from the surface operations and said its short-term focus will be on the rehabilitation of opened up areas.
The company's internal production of fine gold fell to 1,394 ounces from 3,435 ounces, and the company said its total internal gold production fell to 2,637 ounces from 3,435 ounces. This came as the company's Mill No 1 was irreparable after a breakdown and Central Rand had to source a new mill. A second-hand mill was purchased, repaired and installed earlier this month.
Central Rand said it aims to reach an average throughput of 20,000 tonnes processed per month by the end of October. For the six months ended June 30, Central Rand processed 18,824 tonnes, compared to the 94,616 tonnes processed a year earlier.
The company noted it entered into a tolling agreement in July with a third party, Nikkel Mining, which will provide product to be treated through its plant. This agreement is expected to raise income levels, Central Rand said.
Shares in Central Rand were down 6.7% at 1.19 pence on Wednesday .
By Hannah Boland; [email protected]; @Hannaheboland
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