Total attributable gold production increased by 14% to 150 197 oz, mainly as a consequence of Vatukoula coming back on stream, which helped lift gold production from the Australasian operations to 58 858 oz. While Porgera and Vatukoula both reported improvements in gold production, Tolukuma produced 2% less, and performance at all three of the Australasian operations was negatively affected by various factors. Gold produced from the South African operations was slightly higher at 91 339 oz. Crown reported an encouraging 16% increase in gold production while Blyvoor was stable at 40 477 oz and ERPM was 12% down, mainly as a result in a 8% drop in grade from underground.
While group revenue increased by 22% to R642.1 million (R526.3 million) mainly as a result of the weaker Rand, group cash operating profit was 43% lower at R76.2 million (R132.7 million), reflecting a 44% increase in total cash operating costs to R565.9 million. Revenue from the South African operations was 10% higher at R406.2 million. After accounting for cash operating costs,11% higher at R329.0 million, cash operating profit was 3% higher at R77.2 million. By contrast, revenue from the Australasian operations was 50% higher at R235.9 million but after accounting for a 140% increase in cash operating costs to R236.9 million, a R1.0 million cash operating loss was recorded, compared with a cash operating profit of R58.0 million in the previous quarter. Vatukoula and Tolukuma remained in loss-making positions.
Prospects
The skip-cage incident at Vatukoula during October was an unfortunate and serious setback to Emperor's plan to achieve 350 000 oz of gold production at a cash operating cost of USD350/oz by June 2007. The South African operations are on the way to attaining an acceptable level of stability, notwithstanding the slower than expected volume ramp-up at Blyvoor resulting from repairs to No 6 shaft following the shaft accident there, and underground yield issues at ERPM arising from increased seismicity and consequent safety concerns.
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