Archiplego produces 61,191 oz of gold in 2011
Thursday, March 29 2012 - 08:28 AM WIB
London listed mining company Archipelago Resources Plc announced that the company has produced 61,191 oz of gold equivalent at a cash cost of US$579 per oz for the 9 months up to the end of December 2011 since the beginning of April when the first gold was poured and operations have ramped up at Toka Tindung mine in North Sulawesi.
The company claimed that currently the project has an average strip ratio of 5:1 and has maintained operational throughput during the rainy season (from December to March). "This is a significant challenge, but one that we overcome by successfully implementing a number of strategies in anticipation of rain events," said the company in its official statement on Thursday.
The company also said that ore from the three open pits currently in production is blended, allowing them to control head grade. The company is already achieving above plan gold recoveries of 94%, and anticipate these to remain consistent throughout 2012.
"Operationally, our aim in the calendar year 2012 is to produce between 135,000 and 145,000 Au eq oz at a cash cost of between US$540 and US$590 per oz," the company stated.
The company booked revenue from gold sales for the year 2011 as much as $93 million with 60,367 ounces sold at an average price of $1,675 per ounce. While the gross profit in 2011 was $45 million driven by a higher than expected realized gold price.
Earnings before Interest and Tax (EBIT) booked by the company was $31 million after accounting for $5 million primarily associated with financing costs. The Group reported a profit before tax of US$25.9 million in the year ended 31 December 2011, compared with a loss of US$12.4 million in the year ended 31 December 2010. 2011 was its first year of production.
Marcus Engelbrecht, Managing Director and CEO of Archipelago Resources commented that in 2011, Archipelago successfully commissioned the Toka Tindung mine and increased the company's resource and reserve base, supporting a material extension to the life of mine. "In 2012, we will continue to pursue further exploration activities, whilst also maintaining low cost ounce production at Toka Tindung; providing the platform for further growth," he said. He added that the company's focus is to grow into a respected and regionally dominant mid-cap gold producer, managing a portfolio of gold mines and delivering significant value and returns for its shareholders.
Archipelago is a mining company listed on the AIM market of the London Stock Exchange. Archipelago's principal activities are gold mining and exploration in Indonesia (as the 95% owner of the producing Toka Tindung Gold Mine in North Sulawesi, Indonesia). In 2012, Archipelago expects to produce between 135,000 and 145,000 gold equivalent ounces at a cash cost of between US$540 and US$590 per ounce.
Editing by Cepi Setiadi