G-Resources reports higher output from Martabe mine
Thursday, July 16 2015 - 12:27 AM WIB
Hong Kong-listed G-Resources Group Limited reported that gold production at its Martabe mine in North Sumatra during the second quarter of this year increased by 2.8 percent to 72,096 ounces from 70,135 ounces in the same period of last year, providing optimism for the company to achieve its full-year target.
The company said in a statement Tuesday that silver production also increased to 631,189 ounces in the three-month ending June compared to 530,918 ounces in the corresponding period of last year.
?Martabe has achieved another good quarter after a record first quarter for 2015. The mine and process plant treated 993,000 tons of ore at 2.81 g/t head grade, yielding gold production of 72,096 ounces which on an annualized basis would be equivalent to over 288,000 ounces gold. Silver poured was 631,189 ounces, equivalent to over 2.5 million ounces on an annualized basis,? the company said in the statement.
It further said that as a consequence of the good production and also continued focus on Martabe Improvement Programme (MIP), the All-In Sustaining Costs (AISC) for the second quarter were at $537/ounce sold.
?After reviewing production and cost forecasts for the remainder of the year, and as a result of good performance in the second quarter, the company maintains its full year 2015 guidance to 285,000 ounces of gold, 2.3 million ounces of silver with AISC forecast to be in the range of $600-$700/ounce sold,? G-Resources said.
It added that gold and silver revenue received from sales during the quarter reached $93 million.
During the quarter, the world market price of gold fluctuated between $1,165/ounce and $1,225/ounce, with the company achieving an average price for the quarter of $1,193/ounce. This is slightly under the company?s internal financial modeling, but the greater ounces of gold and silver poured during the quarter has more than made up for any revenue shortfall due to prices.
Martabe?s cost position as measured by the WGC AISC at $537/ounce sold for the quarter is again competitive when compared against world peers. ?This good quarter will have another sustained positive impact on the balance of the year?s performance. The good cost results are a result of strong project fundamentals including favorable energy costs, the company?s focus on the MIP seeking to improve on ounces recovered and to reduce costs so as to increase the margin per ounce of gold produced,? G-Resources said.
At the quarter end, the company had $462M in cash, marketable securities and investments and had no outstanding debt.
PRODUCTION HIGHLIGHTS |
|
| Gold Poured, ounce | |
| Q2 2015 | 72,096 |
| Q1 2015 | 84,220 |
| Costs AISC, $/ounce sold | |
| Q2 2015 | 537 |
| Q1 2015 | 471 |
| Average Gold Price, $/ounce | |
| Q2 2015 | 1,193 |
| Q1 2015 | 1,218 |
Editing by Reiner Simanjuntak