PERTH (miningweekly.com) – Precious metals producer Gold One has reported a slight increase in June-quarter gold production, despite illegal industrial action at its flagship Modder East mine, in South Africa.
The ASX- and JSE-listed miner increased its output by 2% quarter-on-quarter to 62 904 oz of gold.
Gold One had dismissed more than 1 000 of its workers at Modder East for taking part in the illegal action, and had faced violent protests as a result. The gold miner turned to the South Gauteng High Court for an interdict to halt the protest actions.
“The loss of production as a result of the illegal industrial action at Modder East, and the subsequent dismissal of a large majority of the operation’s workforce, is highly disruptive and disappointing,” said CEO and president Neal Froneman on Monday.
However, he noted that the company maintained its position and continued to manage the short-term impacts of the dismissals, with a focus on creating long-term stability.
The Modder East operation produced 26 493 oz, 22% behind what it was forecast to produce for the quarter. However, Froneman said that with various contingencies in place, the Modder East mine continued to remain profitable, albeit at lower levels of gold production.
Meanwhile, Froneman said that he was pleased with the progress made with the Rand Uranium acquisition, noting that Gold One was only six months into the Cooke operation’s two-year turnaround initiative.
Gold production at the Cooke operation increased by 12% quarter-on-quarter, to 26 041 oz, which was marginally below the operations’ forecast of 27 000 oz.
At its Randfontein surface operation, gold production increased by 42% quarter-on-quarter, to 10 370 oz, which was 30% higher than forecast, largely as a result of increased volumes and grades delivered to the plant.