JOHANNESBURG (miningweekly.com) – Gold and uranium producer Simmer & Jack Mines (Simmers) had narrowed its loss before special items to R41,6-million in the third quarter ended December 31, 2008.

This was compared to a loss before special items of R73-million reported for the second quarter of the year, the company reported in a statement to shareholders on Friday.

The group’s gold production had increased by 15% to 51 570 oz, compared with the 44 936 oz produced in the quarter ended September 2008.

Revenues were up 32% to R401-million, compared with R304-million in the second quarter, as a result of the higher production and higher gold prices.

Further, the group’s total cash costs for the gold operations dropped by 36% to $705/oz, compared with $957/oz in the previous quarter as a result of the weakening of the rand against the dollar.

Meanwhile, Simmers said that it planned to produce 56 000 oz of gold in the fourth quarter, which would end on March 31, 2009.

The completion of phase two of the rehabilitation of the Buffelsfontein No 5 shaft and the commissioning of the refrigeration plant at the No 7 shaft at Buffelsfontein were also priorities for the quarter.

Further, the low-cost production from heap-leach projects at the Transvaal Gold Mining Estate (TGME) was set to continue, after the mine produced its first gold from surface operations, following the commissioning of the pilot heap-leach pad at Elandsdrift.

Simmers said that it was aiming to also complete a surface bankable feasibility study for TGME during the current quarter.

The company also said that the uranium processing plant at First Uranium’s Ezulwini mine would be commissioned with the first yellow cake to be delivered to thirdparties for calcining.

Simmers owns a controlling stake in TSX- and JSE-listed First Uranium, which reported a C$1,2-million profit for the December quarter.

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