Asa records 6,4pc raise in gold output “Blanket will continue to serve as a solid foundation for this growth, as we look to progress our assets with our long-term goal of becoming a multi-asset gold producer.”

Business Reporter
Asa Resources Group Plc recorded a 6,4 percent increase in gold production to 18,067 ounces at its gold mining unit, Freda Rebecca in the quarter to September on the back of improved feed grade and recoveries. Formerly Mwana Africa before takeover by Chinese, Asa Resources’ gold recovery rate for the quarter increased two percent to 84 percent from 82 percent recorded in Q1 FY2016.

Tonnes milled at Freda increased five percent to 309 102 tonnes during the period under review from 293 759 tonnes of Q1 FY2016. Cash costs for the period were seven percent lower at $870 per ounce from $930 per ounce of the previous period. The average gold price received in Q2 FY2016 was $1,121 per ounce from $1,186 per ounce of Q1 FY2016.

Production of nickel in concentrate at Trojan Mine went up seven percent to 1,442 tonnes from 1,349 tonnes recorded in the previous quarter due to an increase in average head grade and recoveries. Head grade was 31 percent higher at 1,62 percent compared to 1,24 percent of the previous quarter.

The average net realised nickel in concentrate price was $6,847 per tonne compared to $8,461 per tonne of Q1 FY2016, reflecting a 19 percent fall in global nickel prices during the quarter. Nickel sales were 18 percent higher at 1,494 tonnes.

Cash costs for nickel in concentrate dropped 23 percent to $6,895 per tonne compared to $8,901 per tonne of Q1 FY2016, and all-in sustaining C3 costs of nickel in concentrate dropped by 23 percent to $7,539 per tonne.

Asa Resources executive chairman Mr Yat Hoi Ning said, with new management now firmly in place, operations during the financial year’s second quarter have started to improve with gold production five percent higher quarter on quarter at the Freda Rebecca mine and nickel concentrates seven percent higher at Bindura Nickel’s Trojan mine.

“I remain confident that this pattern of steady improvement will persist until operating targets are reached. “At both mines the operational focus has been on containing or reducing unit costs in response to weakening metal prices and grade control and this will be our strategy while prices remain depressed and after they recover to more-acceptable levels,” said Mr Ning.

“We have achieved these results by implementing a new mining plan at Trojan and improved grade control at Freda Rebecca.” Mr Ning said operating and overhead costs have been strictly controlled, again a process that will continue as metal prices move through and out of their current trough.

He said the immediate, near-term outlook is for further price challenges. Mr Ning said on September 29, 2015, the company successfully raised £2,92 million before expenses through an open offer. “The proceeds have been used to further develop the Klipspringer diamond operation and general corporate purposes,” said Mr Ning.

He said the company’s new name, Asa Resources Group PLC, which reflects a broadening of our developmental horizons, has, I believe, inspired our people.

Mr Ning said the initiative is again reflected in the past quarter’s achievements in what have been difficult market conditions.

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