10th Sep 2014 12:07
LONDON (Alliance News) - Mwana Africa PLC's operations at its gold and nickel mines continue to perform well, whilst production is ramping up quickly at the Klipspringer Slimes Retreatment Project in South Africa, Chief Executive Kalaa Mpinga will say on Wednesday.
The CEO will also tell shareholders at the company's annual general meeting that the company remains cash positive and cash generative.
Mpinga will say the company is already beginning to see the benefits of its focus on improving mining and processing efficiencies at the Freda Rebecca Gold Mine in Zimbabwe, as he reported a boost to production levels and a reduction in all-in sustaining cost.
"Gold production for the six months ended June 2014 was 26,883 ounces. Since then the company has produced 11,314 ounces in July and August and forecast production of over 5,000 ounces during September which is based on improved mill throughput, availability and feed grade, all of which are sustainable," Mpinga will say.
"The cash cost of producing averaged USD854 per ounce in July and August against an average of USD1,078 per ounce in the June quarter. This represents a 21% decline in costs quarter on quarter. The all-in sustaining cost averaged USD1,088 per ounce in July and August, this has mostly been because of increased production and reagent optimisation," the CEO is set to tell shareholders.
In addition, the CEO is to say that all of the updates and adjustments to the mine's production facilities have been completed and that Freda Rebecca's sole focus now is maintaining current cost levels and monitoring the efficiencies from the recent improvements.
Mpinga is also due to report progress at the Trojan nickel mine owned and operated by Bindura Nickel Corporation, the Zimbabwean Stock Exchange listed company in which Mwana Africa holds a 75% stake.
"Trojan's production rate is steadily increasing to its optimal sustainable level. During July and August, the mine milled 106,408 tonnes of ore to produce 1,296 tonnes of nickel in concentrate. Cash costs have averaged USD13,654 per tonne during the first two months whilst all-in sustaining costs have averaged USD14,313 per tonne over the same period," shareholders will be told.
"Our focus remains on optimising current operations at the Trojan Mine, whilst continuing to evaluate options for bringing the smelter operations back into production. Initial refurbishment work has already commenced and advanced discussions by BNC regarding its project funding options for the re-start are ongoing," the CEO will say.
Mwana Africa shares were Wednesday quoted up 6.4% at 3.35 pence.
By Samuel Agini; [email protected]; @samuelagini
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