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Senior Business Reporter
METALLON Gold Corporation’s first quarter production dropped 15 percent to 20,673 ounces due to increased power outages and machinery breakdown at its key producer, How Mine, the company said.
The Source reported that the country’s largest gold producer lost an estimated 4,275oz to the outages forcing the group to consider alternative power sources.
How Mine produced 9,540oz compared to 13,680oz the same period last year after breakdowns at its Primary Mill and North Shaft Hoist in January and February, dragging down the group’s overall output.
Metallon’s Shamva, Mazowe, Arcturus and Redwing mines all reported higher output comparatively and profits, chief executive Ken Mekani said without giving figures.
Costs per ounce were higher at $1,160 compared to $962 during the same period last year due to production shortfalls and increased expenditure.
Metallon expects production shortfalls and increased expenditure to come down as output and efficiencies improve with new equipment and improved capacity.
Construction on the new Mazowe processing plant and the new tailing facilities at both Mazowe and Shamva Mines are progressing well, with commissioning expected in the third quarter. “The new Mazowe Processing Plant will increase capacity at the mine to 70,000 tonnes per month, therefore the mine will be producing approximately 22,000 ounces per annum,” Mekani said.
The new plant will create approximately 100 direct jobs.
“This year we’ll be investing in our assets by refurbishing and upgrading operations and expanding capacity, which will deliver economies of scale and significantly lower costs. “This investment and the exploration taking place will put Metallon on course to increased production over the next five years,” he said.
Metallon has targeted to produce 120,000oz this year up from 105,000oz last year. In 2015, the corporation spent over $15 million on capital expenditure and was expected to repay $8 million of its net debt by the end of the first quarter.
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