| Wed 28 Jul 2010, 7:29 | | GDO - Gold One International Limited - Correction: June Quarterly Results |
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GDO
GDO
GDO - Gold One International Limited - Correction: June Quarterly Results
Gold One International Limited
(Previously BMA Gold Limited)
Registered in Western Australia under the Corporations Act, 2001 (Cth)
Registration number ACN: 094 265 746
Registered as an external company in the Republic of South Africa
Registration number: 2009/000032/10
Share code on the ASX/JSE: GDO
ISIN: AU000000GDO5
OTCQX International: GLDZY
("Gold One" or the "company")
Correction: JUNE QUARTERLY RESULTS
GOLD ONE REPORTS STRONG OPERATING PERFORMANCE AT MODDER EAST, SOUTH AFRICA
2010 GOLD PRODUCTION FORECAST ON TRACK
CASH COSTS STEADY AT US$488/OZ
Gold One is pleased to report that despite a five week strike which impacted
production at the beginning of the June 2010 quarter, Modder East has continued
its ramp-up in production, with June 2010 providing a record month in terms of
both gold production (5,981 ounces of gold) and cash operating costs (US$ 434
per ounce).
The steady operating result was underpinned by another quarter of strong safety
outcomes, with a progressive 2010 lost time injury frequency rate of 0.29. This
is significantly below the Australian average of 1, against which the Company
measures itself.
Gold One President and Chief Executive Officer Neal Froneman commented "As a
result of the successful build-up and the establishment of the first new panels
in the No. 2 Raise Line at Modder East from where the next phase of increased
output is planned, combined with the signing of a three year wage agreement with
workers, the Company`s 2010 gold production guidance of 85,000 to 100,000 ounces
remains on track, with 25,000 ounces forecast for the September 2010 quarter."
Four weeks of the five week strike by members of the National Union of
Mineworkers occurred during the quarter under review, which in addition to a
three week production build-up to pre-strike levels effectively resulted in only
half a quarter of normal production. Notwithstanding this, the Company produced
12,287 ounces of gold (a 7% decrease in group ounces from the March 2010 quarter
of 13,208 ounces) with Modder East cash costs steady at US$488 per ounce (March
2010 quarter US$480 per ounce).
Second quarter revenue for the Company was US$ 14.8 million and group cash
operating costs were US$ 6.6 million, resulting in group operating cash flow of
US$ 8.2 million. Development and capital expenditure for the quarter across the
Modder East and Sub Nigel projects was US$ 8.3 million. Gold One ended the June
2010 quarter with US$ 8.6 million of cash on hand and gold pour receivables
(received from the Rand Refinery on 1 July 2010), compared to an end of March
2010 quarter cash balance of US$ 8.9 million. An interest payment on the
Company`s 501 convertible bonds was paid in June 2010, amounting to US$ 1.27
million.
For the second consecutive quarter, the metallurgical plant has maintained
recoveries of 96%, providing confidence that the original feasibility recoveries
of 88% can be consistently exceeded.
FIRST TONNE OF GOLD
During the quarter the Company also achieved several significant milestones,
including the finalisation of a three year wage agreement, pouring of the first
tonne of gold and the execution of an arranging mandate and term sheet relating
to a US$ 65 million debt facility with two leading international banks, Absa
Capital (a division of Absa Bank Limited) and BNP Paribas.
While Modder East remains the Company`s primary focus, there has also been
significant progress made on the Company`s exploration and projects. This
includes the continuation of successful drill intersections at Ventersburg, the
completion of an underground sampling program at the Boundary Project and the
completion of a revised geological model for the Megamine project. The results
of the exploration activities are currently being utilised to upgrade resources
for all these projects, and will include pre-feasibility studies at both
Ventersburg and the Boundary Project. The updated resources are expected to be
completed during the third and December quarters of 2010 respectively.
Froneman commented "with continued ramp up at Modder East and the progression of
our project pipeline, Gold One remains well positioned for growth and delivery
on our strategic objectives".
(Average exchange rate of ZAR 7.53/US$1)
Issued by Gold One International Limited
Website: www.gold1.co.za
Parktown
28 July 2010
JSE Sponsor
Macquarie First South Advisers (Pty) Limited
For further information contact:
Neal Froneman Ilja Graulich
President and CEO VP: Corporate Affairs
+27 11 726 1047 (office) +27 11 726 1047 (office)
+27 83 628 0226 (mobile) +27 83 604 0820 (mobile)
neal.froneman@gold1.co.za ilja.graulich@gold1.co.za
Carol Smith Derek Besier
Investor Relations Farrington National Sydney
+27 11 726 1047 (office) +61 2 9332 4448 (office)
+27 82 338 2228 (mobile) +61 421 768 224 (mobile)
carol.smith@gold1.co.za derek.besier@farrington.com.au
About Gold One:
Gold One is a gold producer listed on the financial markets operated by ASX
Limited (the Australian Securities Exchange) and JSE Limited (the Johannesburg
Securities Exchange) (issuer code GDO). Its flagship operation is the newly
built shallow Modder East mine on the East Rand, some 30 kilometres from
Johannesburg. Modder East is the first new mine to be built in the region in 28
years and distinguishes itself from most of the other gold mines in South
Africa, due to its shallow nature (300 metres to 500 metres below surface),
having to date provided direct employment opportunities for over 1000 people.
Gold One also owns the nearby existing Sub Nigel mine, which is used primarily
as a training centre in the build-up of the Modder mine to full production. Its
other projects and targets include Ventersburg and Bothaville, both in the Free
State goldfields, the Tulo concession in Mozambique and the Etendeka greenfields
project in Namibia. Gold One has an issued share capital of 806,268,333 shares.
Date: 28/07/2010 07:29:01 Produced by the JSE SENS Department.
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