TORONTO (miningweekly.com) – ASX- and JSE-listed Gold One will likely be cash-flow positive by December this year, corporate affairs vice-president Ilja Graulich said on Friday.

Gold One poured the first gold at its new Modder East mine, in South Africa, in July, and is targeting production of 140 000 oz from the operation next year, ramping up to 180 000 oz in 2011.

The company is “well on track” to meet its target for this year of 20 000 oz, Graulich said.

Cash costs in 20010 are forecast at $300/oz and should improve to $230/oz the following year.

Gold One was formed earlier this year when South Africa's Aflease Gold bought Australian BMA Gold.

Besides Modder East, it also recommissioned the Sub Nigel mine, in South Africa, and is treating ore from the operation at the Modder East plant.

Besides the two producing mines, Gold One has a handful of development projects and exploration prospects in South Africa, as well as the Tulo gold project in Mozambique and an iron-ore-copper/oxide project in Namibia.

The Mozambique asset could be producing gold before the end of 2010, Graulich said.

SYDNEY VS TORONTO

Although Gold One still plans to list its shares eventually on a North American exchange, the company is happy with its decision to list initially in Australia, Graulich said in a presentation at an event in Toronto, hosted by MineAfrica.

The company made history by completing the first-ever dual-primary Johannesburg and Sydney stock exchange listings in May this year.

“We had a long research process as to whether we should list on the ASX or the TSX, when we took our business out of South Africa,” Graulich said.

At the time, the company decided that the ASX was less affected by the global financial crisis.

“And, so far we've been proven right, in terms of the investor support that we received out of Hong Kong, Australia and Singapore,” he said.

“But, we do believe that a North American listing, whether it's the TSX or something in New York, is still the ultimate game plan as we grow the business.”