adminTORONTO Stock Exchange listed gold miner, New Dawn, has said revenues for the third quarter ended 30 September 2013 declined to $12 million from $13 million achieved during the previous quarter. The company attributed the decline to poor international gold prices that prevailed during the quarter, which ranged between $1 275 to $1 400 per ounce.
It also said closure of its Kadoma-based mine, Dalny, in August, due to rising operating costs, also impacted negatively on sales revenue.
“Together, these two factors resulted in revenue of $12 164 071, reduced from $13 619 738 and $16 486 612 for the quarters ended 30 June 2013 and 30 September 2012, respectively,” it said in a trading update.
Total gold production during the period under review also declined 11 percent from the previous quarter.
“Gold production for the quarter ended 30 September 2013 was 8 884 ounces, as compared to gold production of 10,256 ounces for the quarter ended 30 September 2012, a decrease of 1 372 ounces.
“As compared to gold production for the previous quarter ended 30 June 2013 of 9, 986 ounces, gold production for the current quarter ended 30 September 2013 decreased by 1,102 ounces.”
The company said its short-term focus was to reduce mine operating costs and increase operating efficiencies under a steady-state or low-growth production model with the existing plant and infrastructure.
The company early this year introduced cost cutting measures which include cessation of all capital development projects except those that need to be commissioned to sustain operations.
These measures are expected to continue being implemented until market conditions improve.
The company has also engaged several parties to dispose two of its gold mines in the country, Venice and Old Nic.
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 Dalny, Golden Quarry and Venice mines, and a portfolio of prospective exploration acreage in Zimbabwe. – New Ziana
Online Reporter