Outlook
Production in the September quarter was negatively impacted
by the following:
- unlawful strike action at KDC and Beatrix which resulted in
a loss of 35,000 ounces;
- the fire at KDC which reduced production by
approximately 30,000 ounces; and
- the temporary suspension of the heap leach facilities at Tarkwa which resulted in a loss of 15,000 ounces.
As a result of the factors described above, and further lost
production at KDC and Beatrix due to the prolonged illegal
strike which was finally resolved on the 6 November,
attributable gold production for the year ending December
2012 is expected to be no more than 3.3 million equivalent
ounces.
For the year ending December 2012, total cash cost is
estimated to be approximately 4 per cent higher at US$895
per ounce (R236,000 per kilogram) and NCE, excluding
capitalised growth projects, is estimated to be approximately 5
per cent higher at US$1,370 per ounce (R360,000 per
kilogram) when compared with the guidance provided in
February. The capital projects group is anticipating spending
approximately US$20 per ounce on realisation costs of
projects, including drilling, feasibility studies and early-work
capital expenditure on our advanced projects. This is well
below the original estimate of between US$50 per ounce and
US$70 per ounce due to the timing of expenditure and
deferrals to ensure project optimisation. These estimates are
based on an average exchange rate of R/US$8.80 and
R/A$9.10 for the remainder of the year. Unit costs vary
quarter on quarter depending upon the timing of capital
expenditure, seasonal electricity tariffs and production
variations due to statutory holidays.
The above is subject to safety performance which limits the
impact of safety-related stoppages and the forward looking
statement.
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