1st Aug 2019 15:29
(Alliance News) - Xtract Resources PLC on Thursday said alluvial production declined by a fifth in the second quarter of 2019, but it expects the performance in the new quarter to be "stronger".
The metals and minerals producer reported total alluvial mining contractor gold production of 33.85 kilograms for the quarter to the end of June, equivalent to 1,088 ounces, with 14.5 kilograms produced post-period end in July. In quarter to March 31, the company produced 1,293 ounces of gold.
"The quarterly production was slightly lower mainly due to increased stripping ratios, thin gravels and lower grade," explained Executive Chair Colin Bird.
Xtract share of revenue from gold sales increased, however, totalling USD321,784 for the second quarter compared to USD204,099 in the first quarter.
"The financial performance numbers show improvements on previous quarters reflecting the strong gold price, cost cutting measures and reduced land compensation costs," said Bird.
Xtract share of direct alluvial production costs was USD99,797 compared to USD119,305 in the previous quarter.
Looking ahead, Bird added: "Conditions therefore appear to be improving, and we look forward to a stronger third quarter."
Xtract shares were trading 2.2% lower on Thursday in London at 1.10 pence each.
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