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New Dawn owns 100 percent of the Turk and Angelus, Old Nic and Camperdown Mines.
In addition, through its Falcon Gold Zimbabwe Limited subsidiary, New Dawn currently owns 84,7 percent of the Dalny, Golden Quarry and Venice Mines, and a portfolio of prospective exploration acreage in Zimbabwe.
In a trading update, New Dawn said 9 986 ounces of gold were mined during the quarter ended June 30 compared to 9 536 ounces produced during the same period last year.
Production for the quarter was also 7,9 percent higher than the previous one ended March 31 where 9 253 ounces of gold were produced.
“As at June 30, 2013 an additional 2 187 ounces of gold awaited export documentation for sale in South Africa, and will be included in July 2013 sales,” the company said.
However, the increased production did not correspond with revenue generated as sales dropped by 10,2 percent to US$13,6 million from US$15,1 million realised by June 30, 2012.
“The average sales price per ounce of gold was US$1 399 for the quarter ended June 30, 2013, as compared to US$1 608 for the quarter ended June 30, 2012, a decrease of US$209 or 13,0 percent.
“The lower average sales price per ounce of gold for the quarter ended June 30, 2013, as compared to the quarter ended June 30, 2012 more than offset the positive impact on gold sales of the 4,7 percent increase in production in the current quarter.”
Consolidated gold sales for the period under review also decreased by 9, 1 percent compared to the previous quarter when US$14 986 200 was realised.
Gold prices have been subdued during the first quarter of this year with the yellow metal trading at between US$1 500 and slightly above US$1 600 an ounce.
However, analysts expect the price of gold, which peaked at US$1 920 an ounce last year, to peak at US$1 800 an ounce by year end.
Recovery of Zimbabwe’s gold sector has been slow but steady, spurred by the liberalisation of gold marketing, high bullion prices on international markets and the country’s changeover to multiple currencies in 2009.
Gold output, which reached an all-time low of 3 tonnes in 2008 having peaked at 29 tonnes in 1999, rose slightly above 14 tonnes last year.
The Chamber of Mines has said gold production in the country could reach 50 tonnes in the next five years.
However, this was dependent on the gold sector securing US$ 1 billion in fresh capital over the next five years, and availability of reliable power supplies. — New Ziana.
Online Reporter