Consolidated Murchison
JOHANNESBURG (miningweekly.com) – Despite gold production from Village Main Reef’s Tau Lekoa gold mine, in the North West, decreasing by a marginal 1% to 28 646 oz in the quarter ended December 31, the operation increased gold sales for the quarter by 23% to 31 025 oz.
This was largely owing to the previously reported gold lock-up in the metallurgical plant being released, which consequently impacted on the recovery grade, which increased from 3.7 g/t to 4.5 g/t.
The higher volume gold sales resulted in 19% higher gold revenue of R414-million, compared with the R349-million reported in the previous quarter.
The mine’s average gold price, however, slipped 3% to R429 518/kg.
BUFFELS
The group’s Buffelsfontein (Buffels) operation, near Stilfontein, realised a cash operating loss of R3-million as it continued to treat surface material, which contributed to offsetting the carrying cost of the operation while rehabilitation activities were under way.
“In line with our plan to increase throughput of surface sources, a total of 76 kg of gold was produced in the current quarter, compared with 59 kg in the previous quarter.
“After continually informing all stakeholders of the deterioration in security in the operating environment at Buffels, mainly owing to the increase in activities of illegal miners, and the potential impact thereof on the safety of our employees, pumping at 2 shaft was stopped in early January,” Village outlined in a results statement on Thursday.
CONS MURCH
Village had, meanwhile, voluntarily entered business rescue proceedings with regard to the Consolidated Murchison (Cons Murch) antimony and gold mine, in Limpopo.
However, earlier this month, the business rescue practitioner applied to discontinue the business rescue proceedings of Cons Murch and place it in provisional liquidation.
Village had committed a maximum amount of R22-million to fund certain business rescue and liquidation expenses.
Cons Murch was deconsolidated from the Village group, effective December 12, as control over the operation ceased when it was placed in business rescue.
An amount of R272-million was included in the loss from discontinued operations on the statement of comprehensive income for the quarter.
FINANCES
Village’s cash operating profit increased by 15% quarter-on-quarter R96.5-million, while pre-tax profit increased by 15% quarter-on-quarter to R51.5-million.
Headline earnings a share from continuing operations increased from 99.71c in the previous quarter to 113.62c in the three months under review.
The group also confirmed that it had receieved a “firm” intention from Heaven-Sent Capital Group to acquire all the issued share capital of Village at an all-cash offer of R12.25 a share.
A shareholder meeting to discuss the offer had provisionally been scheduled for April 2.