Johannesburg, South Africa — MININGREVIEW.COM — 01 February 2012 – Dual-listed gold explorer, developer and producer Gold One International Limited has set its production forecast for 2012 at 300,000 oz, aided by the continued ramp-up of its Modder East mine and new contributions from its recently acquired Rand Uranium operations.
This follows 2011, during which Gold One produced 123,179 oz, according to quarterly figures released yesterday, exceeding guidance of 120,000 oz. It also marks a sharp turnaround from the company’s earlier struggles to meet forecast production during the initial stages of Modder East’s ramp-up in 2010.
Modder East is earmarked to add another 30,000 oz to the company’s output in 2012, with Rand Uranium adding 150,000oz “’ 118,000oz from Cooke Underground and 32,000oz from surface operations.
“The 2011 year was focused on production delivery,” said CEO Neal Froneman in commentary accompanying the results. “During 2012 we look forward to the continued ramp-up in production at Modder East, the implementation of a well- structured turnaround plan at the Cooke underground operations, and a dedicated focus on growth at the Randfontein surface operations.”
Modder East also delivered good operational cash flows, especially in the second half of the year. For the full year, the mine achieved average cash costs of US$491/oz at an exchange rate of R7.25/$. Cash on hand and receivables stood at A$76.5 million at the end of the quarter, which was further bolstered by the capital injection of A$150 million from the closing of the Jintu transaction.
Gold One targets cash costs of US$1,000/oz for Cooke underground by 2014, excluding co-product benefits anticipated by 2015.
The surface operations are now being managed as an independent business unit. “Included in the strategic focus of the Randfontein surface operations is the Cooke uranium project, focused on the development and construction of a uranium processing plan to treat the Cooke tailings deposit, as well as uranium-bearing underground ore,” read the statement.
Gold One went on to say that it was opening an office and would start to initiate a listing in Hong Kong in the coming months, with the view to raising funds for further expansion. The process is expected to take about 18 months.