Village reports recovery in June quarter
JOHANNESBURG (miningweekly.com) – Following a “difficult” March quarter, Village Main Reef bounced back during the quarter ended June 30, as its Tau Lekoa operation hiked output and the Buffelsfontein (Buffels) mine closure and rehabilitation activities progressed.
The gold miner on Tuesday posted “much improved” operational results, with its total cash operating profit from continuing operations having increased from R49.5-million in the three months ended March 31, to R111.9-million in the quarter under review.
Profit from continuing operations, before interest and tax, rose to R76.6-million for the quarter, compared with a loss of R14.8-million in the March quarter.
Further, the R37.8-million in combined losses from discontinued operations – the North West-based Buffels operation and the Limpopo-based Consolidated Murchison (Cons Murch) antimony/gold mine – were lower than the R47.4-million reported for the March quarter.
Tau Lekoa, also in the North West, increased its quarterly gold production to 27 938 oz, compared with the 20 801 oz achieved in the preceding quarter, with revenue increasing 30% to R378-million.
While winter electricity tariffs, increased royalty and bonus payments and additional consumables related to the higher output pushed cash costs R29-million higher quarter-on-quarter, on a per unit cost basis, cash costs decreased 17% to $968/oz and the all-in cost per unit decreased 18% to $1 019/oz.
Buffels reported a jump in revenue from R8-million in the March quarter to R46-million during the three months ended June 30. The operation realised a cash operating profit of R10-million, compared with the prior quarter’s R14-million cash loss.
Meanwhile, with lower prices and volumes hampering revenue at Cons Murch, as the mine continued to struggle to recover to previous operating levels, “good progress” was being made with meeting the conditions precedent for its disposal.
Mining Weekly previously reported that unlisted Australian company, Stibium Mining, had bought Village’s 76.6% interest in Cons Murch for $15-million as part of aspirations to be a major world producer of antimony.
Cons Murch reported a decline in total revenue, from R43-million in the March quarter, to R31-million in the quarter ended June 30, while antimony output fell 38% to 419 t and gold production 30% to 34 kg.
However, Village expected to see an improvement in the operational performance of the mine during the September quarter, following the delivery of new mechanised equipment in June.
Comments
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation