Freda Rebecca, BNC increase output

Published: 23 April 2014

The Freda Rebecca Gold Mine and Bindura Nickel Corporation are well posed to boost Mwana Africa's top and bottomline.

The multi-commodity mining conglomerate's Zimbabwean operations posted increases in output in the quarter ended March 31, 2014.

In terms of Freda Rebecca, tonnes milled for the quarter under review were 8 percent higher at 279,879 tonnes compared to 258,184 tonnes in the prior quarter. Management attributed the increase in tonnage processed is attributed to a 4 percent increase in throughput as a result of the second mill speed increase and a 4 percent improvement in running time, attributable to improved maintenance.

Mwana said a combination of improved milled tonnes and feed grade resulted in gold production rising by 2 percent to 13,380 ounces, compared to 13,072 oz in the previous quarter. BNC's nickel in concentrate sales of 2,207 tonnes from Trojan were achieved, representing an increase of 9,5 percent compared to the previous quarter. The miner said all-in sustaining costs (C3) cash costs increased from $11,819 per tonne to $12,220 per tonne as a result of the continued production ramp-up and shaft re-deepening.

At least 100 percent of production was sold during the period, with a 1,5 percent increase in the average nickel price received to $14,075 per tonne attained. Broadly, Mwana posted an improved performance across its range of operations during the period.

For its diamond operations in South Africa, Mwana production doubled to 12,383 carats which were sold at an average US$21 a carat.

On the Zani-Kodo deposit, in the Democratic Republic of Congo, resource conversion drilling is underway, while the 2014 exploration of the Semhkat copper-cobalt project, also in the DRC, is set to start.

Commenting on the results, Mwana chief executive Kalaa Mpinga said: "I am pleased to be able to report generally improved operating performance across the group's operations during the fourth and final quarter of the 2013 financial year.

"Both gold and nickel production increased, reflecting higher tonnage mined and milled, and diamond production from the Klipspringer Slimes Retreatment Project more than doubled quarter on quarter.

"We anticipate that at Freda Rebecca, the current focus on mining and processing efficiencies, and at BNC continued progress by Trojan Mine towards steady-state and stronger mill performance,

will deliver further operational improvements for the group in the year ahead."
- BH24