ZIMBABWE’S largest gold miner, Metallon Corporation on Monday reported an annual production of 94 212 ounces for 2016, two percent lower than the 96 530 oz achieved previously after a poor fourth quarter.
The miner missed its revised target of 102 000oz, following delays in the construction of the New Processing Plant at Mazowe Mine and scheduled ramp up at Redwing Mine. It also said a ground fall at its largest operation, How Mine in December had impacted on production.
Gold production for the fourth quarter fell 8,5 percent to 24 352oz.
Earnings Before Income Tax Depreciation and Amortisation (EBITDA) grew 40 percent to US$18,6 million against the US$13,3 million obtained in 2015.
The average gold price during the period was higher at US$1,239 compared to US$1,159 in 2015.
Costs were largely stable.
Capital expenditure across the group was US$12 million of which US$8,3 million was spent on new projects.
The commissioning of the Mazowe Processing Plant was delayed to the first quarter of the new year due to equipment delays.
“There have been impediments in taking delivery of final materials and equipment partly due to delays in making external payments in Zimbabwe. The Plant is now constructed and scheduled for commissioning in Q1 2017,” said chief executive officer Ken Mekani in a statement.
The miner is currently undertaking an ambitious expansion plan across all its operations, to become a 500 000 oz per annum producer in the next five years.
Mekani said for 2017 the group has targeted 115 000oz on increased sales volumes and lower average costs.
In addition to How Mine, Metallon also operates Shamva, Mazowe, Arcturus and Redwing mines –The Source