JOHANNESBURG (miningweekly.com) – Australia-based gold exploration and mining company Sino Gold expects to “significantly” increase its gold production for the 2009 financial year.
The gold-miner, which focuses on mining in China, said in a statement to shareholders on Tuesday that it planned to increase the combined gold production at its Jinfeng mine and White Mountain mine to between 210 000 oz and 230 000 oz in 2009.
Further, it also expected its shareholders to benefit from higher gold prices, now that the company was completely unhedged.
In the year ended December 31, 2008, the Jinfeng mine, in southern China, had produced 150 928 oz in its first full year of commercial production. The development of an underground mine had also continued throughout the year.
Ore production from the underground mine would supplement ore from the openpit mine and would ramp up during 2009 as ore was sourced from the initial stopes, stated the miner.
Meanwhile, the first gold was poured at the White Mountain mine, in north-east China, in October 2008, while commercial gold production was achieved in January.
The mine produced 2 617 oz in 2008 and was expected to ramp up to 65 000 oz/y during 2009.
In addition, Sino Gold was hoping to bring its third mine, the Eastern Dragon gold/silver project, in which it bought an 80% stake in April 2008, into production as soon as possible.
A feasibility study has already been completed, but a number of approvals were still needed before the company could start the development of the mine, situated in northern China.
FINANCIAL RESULTS
Sino Gold had recorded a net loss of A$101,4-million in the year, compared with a loss of A$29,4-million the year before.
The increase in the net loss was mainly as a result of a A$100,7-million pretax write-down in relation to acquisitions and exploration carrying values, noted the company.
Further, the miner had closed out all hedging in June 2008, with hedging charges totalling A$35,2-million.
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