Africa-focused Metallon Corporation produced 23 759 oz of gold in the second quarter, bringing its production for the first half of the year, ended June 30, to 48 143 oz.
This was 6% higher than the 45 524 oz produced in the first half of 2014, despite a loss of nine production days in January, owing to a hoist motor failure at its Zimbabwe-based How mine’s North shaft and a planned 12-day shutdown of underground ore hoisting in April to replace the 25 Level loading station infrastructure.
The company also faced a shortfall at its Mazowe mine, near Harare, owing to challenges involving equipment in the crushing and milling plants, while it lost 21 days in April at its Arcturus mine as a result of a breakdown of the Chikomo hoist.
A plan to recapitalise the mine and restructure the management team was being implemented, with two new locomotives, two new airloaders, secondary crushers and slurry pumps having already been bought. These were expected to lead to an improvement in production over the coming months.
“In this volatile gold price environment, our main focus is to maintain a low debt position and negotiate down the current cost of interest repayments.
“We continue to engage with financial institutions for capital expenditure funding and are confident that funding at significantly lower cost will be available in the next few weeks,” the company said in a statement, adding that it planned to spend about $20-million on new projects in the year ahead.
All-in sustaining costs for the first half of the year were $1 064/oz.