Photo by: Bloomberg
PERTH (miningweekly.com) – Despite reporting a quarter-on-quarter decline in gold production during the three months to June, ASX-listed Doray Minerals' Andy Well mine, in Western Australia, has met its first year production and cost guidance.
The Andy Well mine produced 18 767 oz of gold during the quarter, compared with the 20 054 oz produced in the March quarter, bringing its full-year production to 76 785 oz.
Cash costs for the full year were recorded at A$522/oz.
Doray MD Allan Kelly said the figures confirmed the company’s position as one of Australia’s highest margin gold produces over the previous year.
“In our first year of production, we have successfully met both our production and, more importantly, our cost guidance at Andy Well, resulting in the generation of significant cash flow by the company.”
Kelly said that the potential upside at Andy Well had also been confirmed with the consistently high gravity and total recoveries, along with an overcall on ounces recovered from the Wilber lode, and the discovery of additional mineralisation with the potential to extend the mine life.
Meanwhile, gold sales during the June quarter were recorded at 19 936 oz, generating revenue of A$30-million. Revenue achieved from gold sales during the full year reached A$110.3-million.
“It’s certainly been a great start to life as a gold producer and we will continue to optimise the performance of the operation with the long-term development plan in mind, as we transition from the highest-grade and shallowest portion of the mine,” said Kelly.
“Having now repaid most of the project finance facility, we are in a strong financial position moving forward,” he added.