Martabe gold Q3 output down slightly
Wednesday, October 22 2014 - 01:00 AM WIB
Hong Kong-listed G-Resources Group Ltd said on Tuesday that gold production at its Martabe mine in North Sumatra in the third quarter of this year declined slightly by 2.6 percent to 73,153 ounces from 75,132 ounces in the corresponding period of last year.
The third quarter output brings the year to date production level to 208,090, which while slightly lower than 208,977 ounces in the same period of last year, it is greater than guidance, the company said.
The company said that 602,144 ounces of silver poured for the third quarter and 1,648,679 ounces for the year to date.
It added that gold and silver revenue received from sales totaled US$102M.
?Through the quarter, the mine and process plant continued to operate well with gold production on plan and costs continuing to be well managed,? G-Resources said. ?All-in sustaining costs of $679/ounce for the quarter is better than guidance.?
After the end of the quarter, on October 13, the company received approval for the design and future construction of the tailings storage facility (TSF) to its full height of RL360, which will provide current life of mine storage capacity.
The company said it remains in discussions with the Government of Indonesia in respect of the potential revision of some of the terms in the Contract of Work (CoW). ?Both parties are working towards a win-win outcome,? the statement said.
The company has continued its focus on the ?Martabe Improvement Program? seeking to continually realize incremental improvements in operations across the whole business to deliver ever improving financial results. For the quarter, the AISC, at $679/ounce, a further drop of nearly $30/ounce on the previous quarter, continues to demonstrate Martabe?s position as one of the world?s leading gold mines.
The Martabe mine is established under a sixth generation Contract of Work signed in April 1997. Martabe, with a resource base of 8.2 million ounces of gold and 75.3 million ounces of silver, is G-Resources Group?s core starter asset. Martabe?s operating capacity is to mine and mill the equivalent of 4.5 mtpa ore to produce some 250,000 ounces gold and 2 million ounces silver per annum. Costs are competitive when compared to global gold producers.
| Gold Poured, ounces | |
| Q3 2014 | 73,153 |
| Q3 2013 | 70,135 |
| Costs, AISC, $/ounce sold | |
| Q3 2014 | 679 |
| Q3 2013 | 709 |
| Average Gold Price, $/ounce | |
| Q3 2014 | 1,273 |
| Q3 2013 | 1,286 |
Editing by Reiner Simanjuntak