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Business Reporter —
FREDA Rebecca, Zimbabwe’s second biggest gold miner, saw bullion production drop 13 percent in the six months to September 2016, weighed down by a cracked shield cap of the main mill.

Gold output in the half year period under review came in at 30 367 ounces compared to 35 052/oz mined in the same period last year. The mine’s mill challenge has however been offset by new mills.

Parent firm, Asa Resources plc said that two mills had been sourced within the diversified mining group and refurbished to support normal production after the faulty one saw tonnes milled fall 0,4 percent while mined tonnage declined by 11 percent.

But despite the drop in gold production, Freda Rebecca registered 61 percent increase in profit before tax to $5,3 million, achieved on the back of a 2 percent fall in revenue to $39,8 million.

Cash costs, C1 costs, increased by 8 percent to $967/oz from in the previous year’s $899/oz while all in sustaining costs, C3 costs, increased by 7 percent to $1 133/oz due to lower gold production.

Asa group chief executive Ning Yat Hoi said the mining performance at Freda Rebecca has, however, been very consistent over the years, but milling capacity has held them back.

“With the commissioning of two additional small mills, this problem will finally be resolved in the next few quarters,” Mr Yat Hoi said.

“It remains our objective to have C3 costs below $1 000/oz and reach gold output of 80 000 to 100 000/oz per annum.”

The group CEO said that there is a new mill plan to gradually reach the targets. The plan includes repairing the cracked shield cap of the main mill and the refurbishment of both existing mills.

Mr Yat Hoi said the plan will be executed in the next six months and he was confident that when the milling capacity of 1,8 million tonnes is achieved, Freda Rebecca will be in a good position to contribute significantly to the group’s future prospects.