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Precious and base metals miner Mwana Africa plc (LSE:MWA) has more than doubled its gold production from its Zimbabwe mine for the first three months of the current financial year, as against the same period a year ago.
In a statement released today, the AIM-quoted Africa-focussed resource company said it produced some 17,985 ounces of gold from the Freda Rebecca Gold Mine, a 119% leap over a year ago and a 26% increase from last quarter’s production of 14,280 ounces.
“The current rate of production represents an annualised run rate of 71,940 oz. per annum,” Mwana stated, projecting over 14,000 ounces more than the mine’s total production of 57,524 ounces in the past 12 months following the commissioning of the second milling circuit in June 2011.
Mwana Africa controls 85% of the Freda Rebecca Gold Mine, after divesting 15% of its interest to a local Zimbabwean businessman for US$405,000, as agreed in 2005, when the company acquired the mine from AngloGold Ashanti Limited.
“These second quarter results demonstrate the production levels that can be achieved at our Freda Rebecca Gold Mine,” said Kalaa Mpinga, Chief Executive of Mwana Africa, adding that the company continues to “strive for volume and efficiency improvements at the mine”.
Recovery rate also increased from 72% to 82% along with an improved head grade of 2.7 grams per tonne (g/t), better than the 2.38 g/t in the previous quarter.
Mwana was able to lower the cash operating costs from US$952 per ounce to US$ 784 / oz., which offset the decline in the average gold price received from US$1,700/oz. in the previous quarter to only US$1,604/oz.
Freda Rebecca Gold Mine, which received ISO 14001 and OHAS 18001 certification for sustainable environmental management and occupational health and safety management systems in June, contributed US$79.8 million out of the US$81.3 million revenue the company achieved for the year ended 31st March 2012.
Shares of Mwana Africa were up 2.9% to 3.90 pence at 1:00 PM GMT, after rising 5.3% earlier this morning on the Alternative Investment Market, following the announcement.
Company Spotlight
Mwana Africa plc was established following a reverse takeover of the AIM-listed African Gold plc by Mwana Africa Holdings (Proprietary) Limited in 2005.
The company also holds assets in South Africa, the Democratic Republic of Congo, Angola, Ghana, and Botswana, comprising of gold, nickel, copper, cobalt, and diamond exploration projects.
