Gold miner Blyvoor Gold has reported that it has made a R58-million economic contribution amid persistently high gold prices, steadily growing gold output and improved operational efficiency at the Blyvoor mine on Gauteng’s West Rand.
Blyvoor founding shareholder and CE Richard Floyd says ongoing investment in the mine’s production capacity and output, along with historically high gold prices, has allowed the company to accelerate its expansion.
Floyd led a $73-million inward investment from offshore capital after a similar investment by the local founders after buying the mine in 2015.
“Over the past eight years, we have invested more than R2-billion to develop Blyvoor into [a] competitive gold mining operation with an all-in sustaining cost well below market averages.
“In the past 12 months, we have invested a further R136-million in refurbishing the mine, expanding its production capabilities and enhancing our operational efficiency,” Floyd says, adding that the company continued to expand its in-house capabilities by investing in suppliers and contractors with whom it has long and supportive working relationships.
Further, he says the company has assembled a team of experienced mining executives to bolster its strategic decision-making capabilities and ensure Blyvoor achieves its growth plans.
Through close working relations with its supplier partners, Blyvoor has also continued to invest in supplier development to support local economic development and job creation.
Moreover, the company’s workforce is growing, with the current workforce of 1 800 expected to double in size in the medium term.
The South African economy continues to be under severe pressure, largely owing to a mix of policy uncertainty, currency volatility, high levels of inflation and underperforming infrastructure, Floyd says.
He notes that, after contracting by 1.1% in the fourth quarter of last year, real gross domestic product growth reached 0.4% in the first quarter and 0.6% in the second quarter of this year. He says that, after a disappointing end to 2022, the mining sector has been a ray of light for the economy this year, thanks in part to high commodity prices.
Since reaching an all-time high in May, amid global economic uncertainty, gold prices continue to remain in focus for the global precious metals market.
"As widespread economic volatility continues throughout much of the world, gold will continue to be seen as a safe harbour for investors and a quasi-insurance policy against further economic shocks. The high prices and the fact that we are debt-light also support our efforts to raise additional funds to scale up our operations, grow our workforce, and expand the output of the Blyvoor mine," Floyd says.
He believes the strength of the gold mining sector makes it vital that companies support and invest in their workforce and local communities.
"As a South African company with global ambitions, it is essential that we invest in the development and upliftment of the communities in which we operate. Just this year, Blyvoor has spent millions of rands developing, training and upskilling its workforce and commenced payments to workers via our profit share scheme,” Floyd says.
Blyvoor executive chairperson Alan Smith says the company’s leadership team is well-positioned to achieve the mine’s growth plans and to establish Blyvoor as an attractive long-term asset for local and international investors.
“Led by [Floyd] and ably supported by a team of veteran mining executives, Blyvoor is now in top shape for its next . . . phase of growth,” he comments.