20th Oct 2014 08:00
LONDON (Alliance News) - Mwana Africa PLC shares rose early Monday after it said gold production increased in the second quarter to the end of September, along with a rise in nickel production and progress on its wider nickel operations.
The Africa-focused miner said its gold production from the Freda Rebecca site in Zimbabwe increased 23% to 16,555 ounces in the quarter to September 30, up from 13,503 ounces in the previous quarter on the back of improvements in feed grade, recovery and milled tonnes.
The feed grade improved for the site as the main production stopes were fully available and intersected the expected grades. Gold recovery in the quarter increased 4.2% to 80% in the second quarter against the first, and tonnes milled rose 21% to 319,768 tonnes.
The average gold price received in the period was slightly lower, down 2% at USD1,272 per ounce.
Nickel production also increased in the quarter, up 5% to 1,989 tonnes on the back of a 3% rise to the tonnes mined at the Trojan nickel plant in Zimbabwe to 160,741 tonnes.
The head grade for the site was 2% lower at 1.5% owing to temporary mining of lower grade massive ores, Mwana said. Recoveries were down to 83%, against 84% in the first quarter. Nickel sales were up 7% to 2,008 tonnes.
Elsewhere, the group said financing discussions regarding the restart of the Bindura smelter and refinery, also in Zimbabwe, were progressing.
In its diamond operations, the company said the Klipspringer mine in South Africa produced 32,850 carats in the quarter, up 38% on the first quarter, with an average sale price of USD21 per carat.
"We have continued to invest in making our operations more stable and are now demonstrating the positive impact of that investment," said Mwana Chief Executive Officer Kalaa Mpinga.
Shares in the company were up 11.4% to 2.2 pence in early trade, putting it among the best performers on the AIM All-Share index.
By Sam Unsted; [email protected]; @SamUAtAlliance
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