Blanket Gold Mine is now one of the Lowest Cost
Gold Producers in both Africa and the World,
From the mine in Zimbabwe, 12,918 ounces of the yellow metal
were produced - 12 per cent higher than the 11,560 ounces
generated in the second quarter -
Meanwhile, its financial position continued to improve with almost
$25 million of cash on hand.
Analyst Kalachev noted that the firm's cash operating results
were an "outstanding" result compared to the firm's peers.
"We calculate total cash costs including royalties were US$620 per
ounce, which is substantially below the US$750 per ounce
average for London-listed producers," he said in a note.
"This underpins operating cash flow of US$7 million in Q3/12," he noted.
The analyst said that now the indigenisation process is now
complete, the new board has refocused on growth and
approving a capital investment programme that includes
the No.6 Winze development project at
the Blanket mine.
This has the potential to increase production by 70 per cent to
around 70,000 ounces per annum from 2015, he noted.
"As well as the expansion at Blanket, the company is progressing
with its base metal
Nama project (Zambia)
with a view to releasing a copper resource estimate
by June 2013," he added.
"We think this year’s production target of 40,000 ounces looks
conservative, given nine months production of
33,600 ounces," he concluded.
Shares rose today 12.5 per cent, to trade at 7.88p @ CMCL, AIM, London -