Rest of the Release (Very positive)
Upgrade to Bjorkal bring will bring cash costs down for this mine
from about 200 /oz to 180 /oz. A decent Number.
If cash costs for Brazil are decreased from 320 to 280
(I think this was the objective), Cash costs for entire
operation (100,000 oz /Sweden, 80,000 oz /Brazil) will
be about $225 /oz
G & A costs cut by 50%.
All 180,000 oz hedged at $374 /oz I believe.
Costs for Sweden upgrade - 2.3 million American
Sale of Mexican equity - 2 million Canadian
Interpret this however you want.
There will be some writedowns for 1997
(mine shutdown in Australia).
I think the market has already absorbed this.
If cash costs can be achieved and gold reaches traditional
levels, WIM should do well (IMHO) in 1998.
Arthur
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Mr Bharti also reports
Sweden's licencing board for environmental protection has approved the
company's application to upgrade the gold concentrates at its Bjorkdal mine to
dore bars.
The refining plant, being the first of its kind in Sweden, will upgrade the low and
medium grade gold concentrates presently produced to dore bars, containing
approximately 30% of the Bjorkdal mine's gold production. The high grade
concentrate, containing 70% of the gold, will continue to be shipped to an outside
refinery. This will result in an overall reduction in the mine's cash operating cost of
approximately 10% and further enhance the competitive production cost of
William's Swedish mine.
The refining plant, which is estimated to cost approximately US$2.3 million, is
scheduled to commence production seven months after start of construction. |
