16th Feb 2015 08:16
LONDON (Alliance News) - Shares in Mwana Africa PLC were sold off on Monday after the company reported drops in gold and nickel production in the final quarter of 2014.
Mwana said its gold production at the Freda Rebecca project in Zimbabwe dropped 14% in the three months to the end of December, its financial third quarter, to 14,298 ounces from 16,555 ounces in the second quarter.
The group said the fall in production was down to a focus on accumulated ore stockpiles from the two previous quarters. It added the average feed grade was 16% below the feed grade for the second quarter as the main production stopes posted lower-than-expected grades.
The gold recovery rate also dropped to 78%, against 80% in the second quarter, as the Freda Rebecca plant had to cope with a low-quality replacement carbon batch, which mean gold was lost through fine carbon and being passed to the tailings. That defective carbon batch has now been replaced, Mwana said.
Elsewhere, nickel in concentrate production from the Trojan mine in Zimbabwe fell 30% in the quarter to 1,383 tonnes due to fewer tonnes of more being milled, a lower head grade, and reduced nickel recoveries.
The company said the lower production was caused by the ongoing refurbishment programme at the site.
"The third quarter of the 2015 financial year, the three months that ended in December, was a particularly challenging period," said Mwana Chief Executive Officer Kalaa Mpinga.
Mwana shares were down 14% to 1.48 pence on the news, the worst performer in the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Mwana Africa