G-Resources reports lower Q3 gold output at Martabe mine
Friday, October 23 2015 - 02:17 AM WIB
Hong Kong-listed G-Resources Group said gold production at its Martabe mine in North Sumatra in the third quarter of this year fell to 70,302 ounces from 72,096 ounces in the second quarter amid lower price environment.
The company said that silver output in the third quarter was 609,178 ounces, equivalent to over 2.43 million ounces on an annualized basis. No comparative figure was provided.
?The process plant milled 1,083,000 tons of ore at 2.52 g/t head grade, yielding gold production of 70,302 ounces,? G-Resources said in a statement Thursday, describing the third quarter output as good performance.
?A total of 394,000 tons of ore was milled in August, which is a record month for Martabe,? it added.
The company said that average gold price in the third quarter of this year was US$1,126 per ounce, lower compared to $1,193 per ounce in the corresponding period of last year.
G-Resources said the All-In Sustaining Costs (AISC) for the third quarter were $520/ounce sold.
After reviewing production and cost forecasts for the remainder of the year, and the third quarter performance, the company said it maintains its full year 2015 guidance of 285,000 ounces of gold, 2.3 million ounces of silver with AISC forecast to be in the range of $600-$700/ounce sold.
During the quarter, the world market price of gold fluctuated between $1,081/ounce and $1,130/ounce, with the company achieving an average price for the quarter of $1,126/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 $520/ounce sold for the quarter is again competitive when compared against world peers, the company said. ?This good quarter will have another sustained positive impact on the balance of the year?s performance.?
G-Resources said that as at September 30, 2015, there were 21,770 ounces of gold and 184,108 ounces of silver in bullion form, on site and in transit to sale in final refined form.
Capital spent through the quarter, including TSF costs, but excluding exploration expenditures was $7.9 million (Q2: $10.5M).
PRODUCTION HIGHLIGHTS |
|
| Gold Poured, ounce | |
| Q3 2015 | 70,302 |
| Q2 2015 | 72,096 |
| Costs AISC, $/ounce sold | |
| Q3 2015 | 520 |
| Q2 2015 | 537 |
| Average Gold Price, $/ounce | |
| Q3 2015 | 1,126 |
| Q2 2015 | 1,193 |
Editing by Reiner Simanjuntak