ASA Resources' Zim operations in production increase

HARARE - ASA Resources Plc— formerly Mwana Africa Plc — says its Zimbabwean operations are on the mend following an increase in gold and nickel production in the three months to September 2015.

The London Stock Exchange-listed concern’s Freda Rebecca reported a five percent increase in gold tonnes milled to 309 102 tonnes in the quarter to September compared to 293 759 tonnes produced in the previous quarter.

“The average feed grade for Q2 FY2016 increased by six percent to 2,15g/tonne on the back of 2,03g/tonne in the first quarter.

“18,067 ounces (oz) of gold were produced in this quarter from 16,985 tonnes. The 6,4 percent production increase was mainly attributable to improvements in feed grade, tonnes milled and recoveries,” the group’s executive chairman  Yat Hoi Ning said yesterday.

Cash costs were seven percent lower in the quarter under review at $870/oz against the $930/oz recorded in the previous quarter.

“All-in sustaining C3 costs were reduced by six percent to $1,023/oz compared to $1,093/oz recorded prior period, while the average gold price received this quarter was $1,121/oz the price in the first quarter was $1,186/oz,” he said.

Ning noted that the group’s gold recovery rate for the second quarter increased by two percentage points to 84 percent from 82 percent recorded prior quarter.

ASA’s nickel mine— Trojan Nickel Mine — also posted a seven percent increase in production to 1,442 tonnes from 1,349 tonnes, attributed to an increase in average head grade and recoveries

Head grade was 31 percent higher at 1,62 percent from 1,24 percent while recovery was four percent higher at 87,6 percent up from 84 percent.

The average net realised nickel in concentrate price was $6,847 per tonne up from $8,461/t, reflecting a 19 percent fall in global nickel prices this quarter.

Nickel sales were 18 percent higher at 1,494 tonnes from 1,267 tonnes.

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