PERTH (miningweekly.com) – Gold miner Dacian Gold is on target to reach its full year production guidance for the 2021 financial year, despite reporting a slight drop in production for its December quarter.

Gold production in the three months to December reached 27 162 oz, down from the 32 799 oz produced in the September quarter, with all-in sustaining costs (AISC) reaching A$1 430/oz, compared with the A$1 315/oz recorded in the previous quarter.

For the first half of 2021, Dacian reported production of 59 961 oz and an AISC of A$1 356/oz.

Gold sales in the quarter reached 25 169 oz, at an average realised price of A$2 417/oz, with 6 000 oz delivered into legacy hedge commitments, while the remaining ounces were sold at spot.

“We have been active on a number of fronts during the quarter with our operations delivering another robust result that has translated into a significantly improved financial position for the company,” said MD Leigh Junk on Friday.

“The consistency of our operations over the past several quarters, and stronger balance sheet, has culminated in the NTM Gold merger announcement, which meets our stated objective to explore regional consolidation that leverages our significant infrastructure in the Laverton goldfields.”

Junk said that the company was well positioned to meet its full-year target of between 110 000 oz and 120 000 oz, at an AISC of A$1 400/oz to A$1 550/oz.

Dacian and NTM gold in November of last year announced plans for a merger that would consolidate landholding in Western Australia.

Under the terms of a scheme of arrangement, Dacian would acquire all of the issued capital in NTM. NTM shareholders would receive 1 Dacian share for every 2.7 NTM shares held.

Dacian shareholders would ultimately hold a 68.4% interest in the merged entity, with NTM shareholders holding the remaining 31.6% interest.