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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (38090)	6/3/2009 7:50:40 PM
From: LoneClone	Read Replies (1) \| Respond to of 193020

Simmers aims to shed junior status Ines Schumacher \| Tue, 02 Jun 2009 18:22 miningmx.com [miningmx.com] -- SOUTH African junior gold producer Simmer & Jack’s flagship Buffelsfontein mine has been cash flow positive for the second quarter in a row. It is on track to complete the third and final phase of a programme to rehabilitate its high grade number five shaft in September 2009. Buffels’ production output fell by 3%. Simmers aims to address this once the rehabilitation is completed, the company said in a production and project update for the fourth quarter and year ending March 31 2009. The company is on track to becoming a mid-tier gold producer after acquiring its company-transforming Tau Lekoa asset earlier in 2009. Once Tau Lekoa contributes its estimated production of 150,000 ounces per year, the company will be considered a mid-tier producer. This is a production space not many listed miners find themselves in, according to Simmers CEO Gordon Miller. “Our strategy is to fill the void between junior and major gold producers which has developed over many years,” Miller told Miningmx. He said this makes Simmers a much more attractive investment vehicle. Simmers produced 183,036 oz for the fiscal year (FY) to end-March. This is a 9% increase on the 167,912 oz produced during FY 2008, the report said. For the fourth quarter, Simmers recorded a 7% reduction in quarter-on-quarter production. The decrease from 51,000 oz to 48,000 oz was due to First Uranium’s decision to focus on the completion of shaft rehabilitation work at Ezulwini. The change in its First Uranium shareholding from 62.3% to 41% meant Simmers’ attributable gold production decreased by 8%.