ASX- and JSE-listed midtier mining group Gold One last week reported a 96% increase in gold production to 241 755 oz for the year ended December 31, 2012.

The improved output was bolstered by the strategic acquisitions of Goliath Gold Mining, Ezulwini Mining Company and Rand Uranium.

The expanded portfolio also enabled the group to pursue a uranium coproduct strategy by exploiting the uranium potential that existed across the Cooke underground complex.

The group’s Modder East operation produced 97 958 oz, while the Cooke 1 to 3 underground operations and the Cooke 4 underground operations produced 98 451 oz and 8 493 oz respectively. The Randfontein surface operation produced 36 853 oz.

Meanwhile, Gold One achieved revenue of $353.79-million during the year ended 2012, a significant increase on the prior year’s revenue of $194.5-million.

However, profit for the year fell to $31.22- million, compared with the profit of $51.53- million recorded in 2011.

The average total cost for 2012 was signif-icantly higher than the previous year, rising from $719/oz in 2011 to $1 388/oz, driven chiefly by the acquisition and integration of the Cooke underground, the Randfontein surface and the Cooke 4 operations.

Meanwhile, Gold One’s cash balance of $38.38-million at year-end was substantially lower than the previous year’s $213.13-million, largely owing to the settlement of the Rand Uranium and the Ezulwini acquisitions for $250-million and $70-million respectively.

Lower cash flows generated from the Modder East operation, the funding of the Cooke underground development and turnaround strategy, as well as the funding of the Cooke 4 operation following a two-month suspension, also drove the cash balance lower.

“In addition, retrenchment costs paid out at the Cooke underground operation and interest and capital repayments made on the Gold One group’s loans affected the year-end balance,” the company said.

Acting Gold One CEO Christopher Chadwick – who replaced former CEO Neal Froneman following his resignation in November – added that the primary challenge during the period was the illegal strike action experienced at the Modder East and Ezulwini operations.