Johannesburg, South Africa — MININGREVIEW.COM — 21 August 2008 – Emerging South African resources company Simmer and Jack Mines Limited (Simmers) – is expecting an increase of between 12 and 22% in gold production during the September quarter of this year, and its subsidiary, First Uranium, intends commissioning uranium production at its Elandsfontein mine in October this year.
Reporting the company’s results for the quarter ended 30 June 2008 (the company’s first quarter of fiscal 2009), Simmers chief executive Gordon Miller was confident that the group would produce between 43 000 and 47 000 ounces of gold during the current quarter.
This would represent a substantial improvement on Q1 of F2009, when the company recorded total production of 38 410 ounces, which was sold at an average price of R217 261 per kilogram. This translated into gold revenue of R260 million, slightly below the R266 million of the previous quarter.
The results report also revealed that although uranium production had been pushed back by two months to October 2008 because of the late delivery of certain equipment, the delay was unlikely to impact overall uranium shipping volumes for the 2009 fiscal year.
It went on to say that the company was currently focused on the rehabilitation of the high-grade No. 5 shaft at its Buffelsfontein gold mine (BGM) in the North West, and on getting its surface operations up and running at Transvaal Gold Mining Estates (TGME) in Mpumalanga.
Furthermore, in addition to First Uranium Corporation commissioning its uranium production at Ezulweni in October, following the successful commissioning of the Ezulwini gold plant in July, Mine Waste Solutions (MWS), was in the process of doubling the current design capacity of the gold plant, and was on track to begin uranium production by the end of the current financial year on 31 March 2009.
During the second quarter, Simmers also planned to hoist approximately 83 300 tonnes of ore at the Ezulwini Mine; to process approximately 17 200 tonnes of gold-bearing ore through the newly-commissioned gold plant at the Ezulwini mine; to commission the second 50 000 tonnes per month mill module at Ezulwini during September 2008; to begin producing from the high- grade No. 5a sub shaft at BGM; to initiate the leach process at TGME`s Elandsdrift heap leach pad; and to initiate mining from Duke`s Hill at TGME.
The Group`s net loss before taxation increased from R70 million in Q4 of F2008 to R89.3 million, of which R24 million was as a result of the net realisable value adjustment on the stockpile at Ezulwini. Overall production costs for the Group increased from R225 million in Q4 of F2008, to R266 million.
As at 30 June 2008, the Group was in a strong financial position with total assets of R3.9 billion, total liabilities of R1.7 billion and shareholders’ equity of R2.2 billion.