HomeGoldGold One reports 21% increase in gold output

Gold One reports 21% increase in gold output

The sun sets over
Gold One’s flagship
Modder East mine
Johannesburg, South Africa — MININGREVIEW.COM — 20 April 2010 – Gold One International “’ a combination of South African gold development company Aflease Gold Limited and Australian gold exploration and development company BMA Gold Limited – has reported a 21% increase in gold output to 13 208 ounces for the first three months of the year.

In a statement released here, the company said that of the total group production for the quarter, 12 443 ounces had been produced from the Modder East underground operations. Total group production for the December quarter had been 10 323 ounces.

Gold One pointed out that improved production had been achieved despite the negative impact of wage negotiations throughout the quarter and industrial action.

Revenue for the company for the quarter had been R108.4 million and cash operating costs R53.5 million, resulting in an operating cash flow of R54.9 million.

Cash on hand at the end of the quarter was R67 million, compared to an end December 2009 quarter cash balance of R101 million. The company had paid R31.6 million to redeem convertible bonds, while also paying interest on the bonds for the quarter of around R10 million.

Gold One also reported making good progress in refinancing the company’s convertible bond.

It said one South African bank and one international bank had been short-listed to finalise and implement a facility on a syndicated basis, and it was anticipated that final credit committee- approved term sheets would be in place by the end of May 2010.

“The past quarter has been another solid foundation block in the build-up to full production at our flagship Modder East mine,” said Gold One president and CEO Neal Froneman. “Our immediate priorities are to resolve the impasse around the wage dispute with the National Union of Mineworkers (NUM) and the implementation of a corporate debt facility," Froneman added.