adminduring the same period last year.
The rise in gold output comes on the back of the commissioning of a second milling circuit at the mine in June last year.
Freda Rebecca contribution to Mwana Africa’s earnings rose from US$37,5 million last year to US$79,8 million in the just ended financial year.
Mwana Africa chief executive Mr Kalaa Mpinga said as a result of the ramp-up under Phase II the mine’s targeted annualised production rate of 50 000 ounces was achieved ahead of schedule.
“At Freda Rebecca, ramp up in production continued after the installation and commissioning of the second milling circuit in June 2011.
The production rate of 50 000 ounces per annum was established in the quarter to September 2011,” he said.
“For the whole of the financial year, Freda Rebecca produced a total of 47 770 ounces of gold, contributing US$17,7 million to group profits and generating US$15,5 million of cash inflows.” Mwana Africa acquired the Freda Rebecca gold mine, situated in Bindura, in April 2005, with production resuming in October 2009 following an extended period of care and maintenance.
Mwana Africa, which has operations in several countries including Angola, the Democratic Republic of Congo and South Africa, also owns 52,9 percent of the mothballed Bindura Nickel Corporation.
Meanwhile, Mwana earlier this week announced that it would proceed with the underwriting of the BNC rights issue.
The proceeds of the rights issue would be used to fund the restart of BNC’s Trojan Nickel Mine.
In a statement, Mwana said further funding would be required in about a year’s time to provide sufficient working capital to take the project to a “cash-flow positive” state.
The company reported that it would continue the underwriting process, as BNC had reached a resolution regarding settlement with its creditors and staff, as well as on a retrenchment package for staff not required for the restart of the mine.
Mwana Africa expects to invest US$21 million in BNC through the rights issue.
BNC shareholders approved the rights issue at an extraordinary general meeting held in Harare at the end of June.
Mr Mpinga said the BNC rights issue and a separate BNC creditors and staff placing would be closed over the next few weeks.
“I cannot overstate the significance of this step for Mwana, for BNC and for Zimbabwe.
“I now look forward to working together with all stakeholders on the restart of BNC’s Trojan Nickel Mine,” he said.
Online Reporter