FREDA Rebecca Gold mine produced 119 per cent more gold in its latest quarter compared to the same period last year, helping lift shares in parent company Mwana Africa by more than 5 per cent on Tuesday.
In the three months to June 30, Mwana’s most advanced project in Zimbabwe produced 17,985 ounces of the yellow metal - 119 per cent more than the same period in 2011 and 26 per cent more than in Q1 this year.
The firm put the improved quarterly production down to increased mill throughput along with improved head grade and better recoveries.
There was also a reduction in the cost of production to $784 per ounce, it added.
In the June quarter, the firm received an average of $1,604 per ounce for the gold, compared to $1,700 in the previous three months.
Chief executive Kalaa Mpinga said: "These second quarter results demonstrate the production levels that can be achieved at our Freda Rebecca Gold mine and we continue to strive for volume and efficiency improvements at the mine."
The firm added that Bindura Nickel Corporation's assets (BNC) remained on care and maintenance for the June quarter to maintain their integrity.
Mwana owns 52.9 per cent of BNC and today, the company said that the Trojan mine remained ready to restart subject to BNC securing the required funding.
"BNC is now focused on recapitalisation, resolving legacy creditors and finalising a retrenchment programme such that the Trojan restart can commence," Mpinga said.
A rights offer launched last month aimed at helping raise funds for BNC’s restart is set to be concluded at the end of July.
“The conclusion of the rights issue is conditional, inter alia, on the satisfactory resolution of a staff retrenchment programme and legacy creditor issues,” Mwana Africa said.
“Notably, on 29 June 2012, BNC shareholders approved the various resolutions required to implement the recapitalisation and restructuring at BNC. Discussions with staff and creditors are ongoing.”
The Zimbabwe government is also keen to see BNC restarted with Finance Minister Tendai Biti announcing in a recent economic review that the company had been awarded national project status.