Cons Murch
JOHANNESBURG (miningweekly.com) – Following a “difficult” March quarter, Village Main Reef bounced back during the quarter ended June 30, as its Tau Lekoa operation hiked output and the Buffelsfontein (Buffels) mine closure and rehabilitation activities progressed.
The gold miner on Tuesday posted “much improved” operational results, with its total cash operating profit from continuing operations having increased from R49.5-million in the three months ended March 31, to R111.9-million in the quarter under review.
Profit from continuing operations, before interest and tax, rose to R76.6-million for the quarter, compared with a loss of R14.8-million in the March quarter.
Further, the R37.8-million in combined losses from discontinued operations – the North West-based Buffels operation and the Limpopo-based Consolidated Murchison (Cons Murch) antimony/gold mine – were lower than the R47.4-million reported for the March quarter.
Tau Lekoa, also in the North West, increased its quarterly gold production to 27 938 oz, compared with the 20 801 oz achieved in the preceding quarter, with revenue increasing 30% to R378-million.
While winter electricity tariffs, increased royalty and bonus payments and additional consumables related to the higher output pushed cash costs R29-million higher quarter-on-quarter, on a per unit cost basis, cash costs decreased 17% to $968/oz and the all-in cost per unit decreased 18% to $1 019/oz.
Buffels reported a jump in revenue from R8-million in the March quarter to R46-million during the three months ended June 30. The operation realised a cash operating profit of R10-million, compared with the prior quarter’s R14-million cash loss.
Meanwhile, with lower prices and volumes hampering revenue at Cons Murch, as the mine continued to struggle to recover to previous operating levels, “good progress” was being made with meeting the conditions precedent for its disposal.
Mining Weekly previously reported that unlisted Australian company, Stibium Mining, had bought Village’s 76.6% interest in Cons Murch for $15-million as part of aspirations to be a major world producer of antimony.
Cons Murch reported a decline in total revenue, from R43-million in the March quarter, to R31-million in the quarter ended June 30, while antimony output fell 38% to 419 t and gold production 30% to 34 kg.
However, Village expected to see an improvement in the operational performance of the mine during the September quarter, following the delivery of new mechanised equipment in June.