15th Aug 2014 09:06
LONDON (Alliance News) - Central Rand Gold Ltd Friday said it managed to narrowed its losses in the first six months of 2014, but reported a fall in revenue due to lower gold production.
The South African gold mining and exploration company posted a pretax loss of USD2.8 million for the first-half ended June 30, compared with USD4.9 million in the first-half of 2013, on the back of lower operating expenses and a significant reduction in production costs.
However, revenue fell to USD5.8 million, down from USD8.8 million last year.
The company said gold production fell in the period due to lower feed grade from underground operations and lower reliance on toll treatment. It also saw a temporary reduction in underground mine production due to high water level.
Total mining production in the first-half was 88,161 tonnes, compared with 130,216 tonnes in 2013.
"Recognising the current mining limitations, and until the water table drops substantially, Central Rand Gold has reduced the underground production target at its CMR mining operation from 14,000 tonnes per month to 4,500 tonnes per month. The company is in the process of reducing its current staffing numbers to account for these new targets," the company said in a statement.
The company's main focus is on its Consolidated Main Reef (CMR) operations, which has been split into CMR West and CMR East, and the Crown Mines development.
The company said gold production was hit by the reduction in mining area during the first six months of the year due to rising acid mine drainage, which forced the company to mine shallower and lower grade mining channels.
In the first-half Central Rand Gold produced 4,149 ounces, compared with 6,097 ounces a year earlier.
Central Rand Gold shares were down 2.4% at 10.38 pence Friday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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