JOHANNESBURG (miningweekly.com) – Zimbabwe-focused gold producer Metallon Corporation grew its earnings before interest, taxes, depreciation and amortisation (Ebitda) by 40% to $18.6-million in 2016, from $13.3-million in 2015.
“2016 was a year of positive progress for Metallon. The business delivered an outstanding Ebitda . . . This was attributable to solid production from operations, especially at How Mine, improved cost efficiencies and a strong gold price,” CEO Ken Mekani said in a statement on Monday.
He added that Metallon continued to invest its cash flows back into the business with over $12-million spent on capital expenditure (capex), testament to the company’s commitment to improving its operations in Zimbabwe.
During the period, capex across the group was $12-million, of which $3.7-million was sustaining and restoration capital and $8.3-million was expansion capital spent on new projects.
“However the year was not without its challenges, especially in regards to the completion of the Mazowe processing plant. There have been impediments in taking delivery of final materials and equipment partly owing to delays in making external payments in Zimbabwe. The plant is now constructed and scheduled for commissioning in the first quarter of this year,” said Mekani.
Production for 2016 was 2% lower year-on-year at 94 232 oz, but Metallon expects to increase production to 115 000 oz this year.