Metallon FY16 production falls, targets 115,000oz in 2017

Metallon FY16 production falls, targets 115,000oz in 2017

HARARE, February 20 (The Source) – Zimbabwe’s largest gold miner, Metallon Corporation on Monday reported an annual production of 94,212 ounces for 2016, two percent lower than the 96,530oz 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 $18,6 million against the $13,3 million obtained in 2015.
The average gold price during the period was higher at $1,239 compared to $1,159 in 2015.

Costs were largely stable.

Capital expenditure across the group was $12 million of which $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 Ken Mekani in a statement.

The miner is currently undertaking an ambitious expansion plan across all its operations, to become a 500,000oz 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