Kingsrose reports drop in gold, silver output from Talang Santo
Tuesday, November 1 2016 - 04:17 AM WIB
ASX-listed Kingsrose Mining Limited reported on Tuesday that gold production at its Talang Santo mine in South Sumatra in the quarter ending September of this year reached 2,660 ounces, a 33.66 percent fall from 4,010 ounces in the corresponding period of last year.
The company said in a statement that silver production during the quarter reached 5,072 ounces, a 48.32 percent drop from 9,815 ounces in the same quarter of last year.
?During the quarter the company sold 2,411 ounces of gold at an average gold price of A$1,776/oz and realized A$4.41 million in revenue,? the company said in a statement.
The September quarter 2016 revenue was lower than realized revenue of $6.03 million made in the same quarter of last year, although average gold price was higher compared to A$1,674/oz, as sales volume was also lower compared to 3,601 ounces.
Kingsrose said the cash costs of production for the September quarter of this year were US$1,440/oz and all-in sustaining costs (AISC) of production for the period were $2,149/oz.
The company said that although unit costs continue to be significantly impacted by low production rates, there was an 11 percent overall reduction in the total site gross operating costs over the September quarter. With a large component of the cost base being fixed, the company?s unit costs remain highly leveraged to increased production levels.
The company said it continues to search for cost saving opportunities and the current focus on lifting production rates and maximizing resource recovery will lead to significant reductions in unit costs.
Meanwhile, the company said it is currently in discussions with its lenders regarding a number of proposed changes to the loan and security agreements, including changes to the repayment schedule.
To enable time for all parties to agree and finalize the proposed changes, the lenders have extended the time for completing the documentation until November 21, 2016. In addition, the lenders have agreed to defer the October 2016 repayment pending the finalisation of the revised repayment schedule.
Editing by Reiner Simanjuntak