Simmer and Jack reports fist half loss; production rose 5%
The group said it expects output from BGM and Tau Lekoa to help next half
Posted: Friday , 20 Nov 2009
JOHANNESBURG (Reuters) -
mineweb.com
South African small gold producer Simmer and Jack Mines Ltd (SIMJ.J) on Thursday reported a first-half operating loss, but said it expected new output from its mines to support earnings in the future.
Simmers said production for the six months to the end of September rose 5 percent to 66,295 ounces compared with 62,880 oz for the same period the previous financial year.
Revenue rose 16 percent to 499 million rand ($67.25 million), but the company reported an operating loss for the period of 65 million rand.
"The first six months ... were characterised by further dramatic increases in the costs of power and mining consumables and a volatile gold price," Chief Executive Gordon Miller said in a statement.
Simmers said it expects the Tau Lekoa mine, bought this year from AngloGold Ashanti (ANGJ.J), to boost the company's production by 130,000 ounces next year.
In addition, the opening up of the No. 5 shaft will boost output at its Buffelsfontein Gold Mine (BGM) by 20 percent over the next three years. "The additional ounces coming from BGM/Tau Lekoa, as well as the effects of the rationalisation programmes at both TGME and BGM will provide the necessary antidote to a strong rand and help stabilise cash costs," the company said. (Reporting by Agnieszka Flak) |
