HomeGoldGold One confirms 2011 target

Gold One confirms 2011 target

The portal at
Gold One’s Modder
East mine
Johannesburg, South Africa —, MININGREVIEW.COM — 30 November 2010 – Gold One International Limited “’ an Australian and African gold producer listed on the Australian Securities Exchange and the JSE Limited “’ has confirmed its production guidance for 2011 at 120 000 ounces.

In a statement issued here, the company said it anticipated improving on its current annualised levels of 90 000oz, by producing 25 000oz in the March quarter, 28 000oz in the June quarter, 34 000oz in the September quarter and 33 000oz in the December quarter.

The statement added that cash costs were forecast to average $417/oz for 2011, and the group further anticipated to reach a 150 000oz target in 2012.

It said capital expenditure for Gold One’s Modder East mine was expected to be US$42 million (R294 million), equating to a capital cost of US$350/oz, for 2011. Capital costs over the life of the mine remained unchanged at approximately US$100/oz.

Gold One pointed out that included in the total capital cost was US$21 million (R147 million) of development capital. Total costs would therefore be US$767/oz.

The group was also expecting earnings of US$59 million (R413 million) in 2011, based on consensus broker views of the gold price and exchange rates of US$1 234/oz and R7.69/$ respectively.

“The extensive planning and budgeting process that has been completed at Modder East has incorporated experience gained over the past 18 months of production, providing a confident growth plan for the next 24 months,” said Gold One CEO Neal Froneman.

“Gold One already has the lowest cash costs of South African producers, which is all the more pleasing, as it is being achieved at only 30% of designed tonnage throughput.”