JOHANNESBURG (miningweekly.com) – While gold miner Beadell Resources managed to increase its gold production and sales in the second quarter, its costs surged between the June last year and June this year, partly owing to the strengthening of Brazil’s currency.
Beadell boosted its gold production at the Tucano mine by 15% year-on-year to 24 568 oz and increased its sales by 26% to 26 487 oz, the ASX-listed miner reported on Thursday.
However, cash costs increased by 6% year-on-year to $953/oz, while all-in sustaining costs increased by 20% to $1 245/oz in the June quarter.
Beadell reported that the strengthening of the Brazilian real, which appreciated by about 10% against the dollar during the quarter, had negatively impacted on costs.
The planned cutbacks at the AB1, AB2 and Duckhead pits continued during the quarter and were a significant contributor to high costs. Although adding to the costs for the quarter, the company noted that the progression of the cutbacks enabled access to higher grade ores and would result in higher production in the second half of 2016.
Beadell stated that it expected to realise cost savings over the next 6 to 12 months.
The company has a production guidance of between 145 000 oz and 160 000 oz for 2016. In the first six months of the year, production totalled 56 642 oz.