New Dawn gold sales surge

HARARE - Zimbabwe-focused New Dawn Mining Corporation (New Dawn)’s gold sales stood at $16,6 million in the quarter ended December 2012, up 7,6 percent from $15,4 million in the comparable period.

The miner said the average sales price per ounce of gold was $1 711 and $1 684 for the quarters ended December 31, 2012 and 2011, respectively.

The Toronto Stock Exchange-listed group said production for the quarter grew to 9 069 ounces, compared to consolidated gold production of 9 095 ounces.

“Consolidated gold production was essentially flat for the quarter ended December 2012, as compared to the quarter ended December 2011,” said New Dawn.

As compared to consolidated gold production for the previous quarter ended September 30, 2012 of 10 256 ounces, consolidated gold production for the current quarter ended December 31, 2012 decreased by 11,6 percent.

The junior gold company said by the end of last year, an additional 2 029 ounces of gold awaited export documentation for sale in South Africa, and will be included in January 2013 sales.

New Dawn owns 100 percent of the Turk and Angelus, Old Nic and Camperdown Mines.

In addition, through its Falcon Gold Zimbabwe Limited subsidiary, New Dawn currently owns 84,7 percent of the Dalny, Golden Quarry and Venice Mines, and a portfolio of prospective exploration acreage in Zimbabwe.
With the exception of the Venice Mine, all of these mines are currently in production and are geographically divided into three major gold camps.

Meanwhile, Zimbabwe gold sales surged by 18,94 percent in 2012 to $782,75 million due to favourable international prices.

According to figures from the Chamber of Mines, total gold output rose 13,47 percent from 12 992 kilogrammes in 2011 led by robust production in July, August and October to close the year at 14 742,99 kilogrammes — marginally short of the targeted output of 15 000 kilogrammes.

Monthly average production was 1 228,53 kilogrammes.

Analysts believe if key challenges facing the mining sector such as inadequate capital and energy supply constraints are overcome, mining can contribute as much as 18 percent to gross domestic product by 2015, and well above 25 percent by 2020.

Gold, platinum and diamonds are expected to lead the growth of the mining sector.

The major gold producing mines reported record production for the year on the back of improved investment into exploration.

Platinum production on the other hand was at 10 524kg, a decrease of 2,79 percent from the comparable year ago period.  

As a result, the value fell to $464,51 million to $538,27 million last year, a decline of 13,7 million — missing a country forecast of 12 900 kg.

Platinum miners last year scaled down production owing to a sharp increase in production costs attributed to the hike in mining fees and ballooning input costs against falling global prices. - John Kachembere

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