REGIONAL commodities group Mwana Africa said Thursday output was gold output at its flagship gold mine was significantly up adding a plan to maximise returns at Bindura Nickel Corporation (BNC) had also been completed.
In an operational update, the London-listed group said quarterly production from the Freda Rebecca Mine was up 19% quarter-on-quarter at 17,536 ounces of gold, while cash costs fell US$112 an ounce to US$837.
The company said its BNC subsidiary was also making significant progress after deciding to target the higher grade zones at the feeder Trojan mines.
Recoveries have increased markedly to almost 89% from 69.7% previously, while costs have dropped to US$9,689 a tonne from US$19,251 in the previous quarter.
Sales from Trojan more than doubled to 1,505 tonnes of nickel concentrate.
“Operationally, this has been a very pleasing and positive quarter for the company,” said group CEO Kalaa Mpinga.
“At Freda Rebecca, the Company has enjoyed a significant 19% uplift in gold production compared to the previous quarter.
“At Trojan, the BNC team completed a new mine plan to maximise returns and improve cash flows by targeting the higher grade “massive” zones. The results thus far have been very pleasing with record production months being recorded in this quarter.
“(Outside consultancy have) also confirmed that the new mine plan is “realistic and achievable” and I would personally like to thank all those involved for their considerable efforts.
“In conjunction with these operational achievements, the company has successfully planned for and executed a strategy to de-risk the company’s future development following the implementation of a number of cost saving initiatives and two share placing.”
The update impressed analysts with SP Angel saying: “This looks like a good quarter for Mwana with Freda Rebecca increasing production and bringing costs down which should help cash flows.
“Mining of higher grade ore at Trojan is making the nickel operation cash positive despite depressed nickel prices. The company need to keep operations moving in this direction before moving to expanding the nickel operations.”
Mwana Africa’s principal operations are based in Zimbabwe although the group is also pursuing development opportunities in the Democratic Republic of Congo and South Africa.Advertisement