PERTH (miningweekly.com) – Gold miner Doray Minerals on Friday reported an 18% drop in cash operating costs at its Andy Well mine, in Western Australia, on the back of higher gold production.
Doray earlier this month announced that the Andy Well mine’s production had reached 20 963 oz during the three months to December, compared with the 18 265 oz delivered in the previous quarter.
MD Allan Kelly said on Friday that the December quarter gold production results saw a significant reduction in costs, and meant that the company remained on track to meet its 2015 production target of between 85 000 oz and 90 000 oz.
Cash operating costs for the quarter under review declined to A$633/oz, compared with the A$773/oz reported in the September quarter, while all-in sustaining costs reached A$1 110/oz, compared with the A$1 384/oz reported in the previous quarter.
For the full-year, cash operating costs were expected to range between A$600/oz and A$700/oz, this was down from the previous estimation of between A$700/oz and A$800/oz.
During the quarter under review, some 21 584 oz of gold was sold, generating revenue of A$31.3-million. This compared with the 18 962 oz sold in the previous quarter, which tallied to A$28.6-million in revenue.
Doray in October last year launched a takeover offer for fellow-listed gold producer Mutiny Gold, offering that company’s shareholders one of its own shares for every 9.5 Mutiny shares held, valuing Mutiny shares at 5.4c each.
The offer was recently declared free of any conditions, and at the end of the December quarter, more than 70% acceptance had been received.
Kelly was on Friday appointed as nonexecutive director of the Mutiny board, along with Doray’s nonexecutive director Peter Lester, as nonexecutive chairperson.