Modder East “’
Gold One’s flagship
project
 
Johannesburg, South Africa — 02 May 2012 – Gold One International “’ a dual listed mid-tier mining group with gold operations and gold and uranium prospects across Southern Africa “’ has posted an 85% quarterly increase in gold production, following the incorporation of the Cooke underground and Randfontein surface operations in its results.

However, Miningmx reports that gold production of 60,507oz across all three operations was 9% lower than guidance due to a slower-than-anticipated start-up following the December festive season holidays.

“At Modder East, production losses were compounded due to both protected and unprotected industrial action and mine-wide safety stoppages imposed by the Department of Mineral Resources,” read a company statement.

Gold revenue for the March 2012 quarter amounted to US$86.19 million at an implied average price of US$ 1,424/oz.

This comprised 29,656oz of gold sold into the spot market at an average price of US$1,648/oz and 30,851oz delivered into the Rand Uranium hedge book at an average of US$1,209/oz. The group achieved a pre-tax profit of US$7 million.

Gold One’s cash balance reduced by 34% during the quarter, principally as a result of it paying the first tranche due for the Rand Uranium acquisition, totalling $137 million. Cash in the bank stood at US$147 million.

Gold One president and CEO Neal Froneman commented: “It was disappointing that after six quarters of delivery we missed our March quarter 2012 production forecasts. However, we have addressed the underlying issues and are now well positioned to improving the efficiency and performance of our operations and to deliver on next quarter’s guidance.”

Source: Miningmx. For more information, click here.