South Africa region
KDC
|
|
|
Sept
2012 |
|
June
2012 |
|
|
Gold produced |
- 000’oz |
238.3 |
|
279.6 |
|
|
|
- kg |
7,411 |
|
8,698 |
|
|
Yield - underground |
- g/t |
7.2 |
|
7.2 |
|
|
- combined |
- g/t |
3.4 |
|
3.6 |
|
|
Total cash cost |
- R/kg |
297,085 |
|
242,596 |
|
|
|
- US$/oz |
1,119 |
|
936 |
|
|
Notional cash expenditure |
- R/kg |
390,163 |
|
311,163 |
|
|
|
- US$/oz |
1,469 |
|
1,201 |
|
|
NCE margin |
- % |
10 |
|
26 |
|
Gold production decreased by 15 per cent from 279,600
ounces (8,698 kilograms) in the June quarter to 238,300
ounces (7,411 kilograms) in the September quarter. This
decrease was as a result of a fire at Ya Rona shaft (formerly
Driefontein 4 shaft) which started at the end of the previous
quarter and accounted for approximately 30,000 ounces (900
kilograms) lost production during the quarter. The illegal
industrial action accounted for a further 35,000 ounces (1,100
kilograms).
Underground tonnes milled decreased from 1.08 million
tonnes in the June quarter to 0.88 million tonnes in the
September quarter. The underground yield remained
constant at 7.2 grams per tonne. Surface tonnes milled
decreased from 1.32 million tonnes to 1.28 million tonnes
offset by the yield which increased from 0.7 grams per tonne
to 0.8 grams per tonne.
Main development decreased by 18 per cent from 11,600
metres to 9,470 metres and on-reef development decreased
by 10 per cent from 1,926 metres to 1,724 metres. The
average development value decreased from 2,013 centimetre
grams per tonne to 1,723 centimetre grams per tonne.
Operating costs increased by 7 per cent from R2,074 million
(US$257 million) to R2,221 million (US$270 million). This
increase was evenly split between the annual salary
increases of between 9 and 10 per cent for the lower and
middle category workers, who comprise around 95 per cent of
the workforce, and an increase in electricity costs due to two
months of higher winter tariffs compared with one month of
higher winter tariffs in the June quarter. This increase was
partly offset by a reduction in labour costs due to the illegal
strike and lower stores costs in line with the decrease in
production. Total cash cost for the quarter increased from
R242,596 per kilogram (US$936 per ounce) in the June
quarter to R297,085 per kilogram (US$1,119 per ounce) in the
September quarter. This increase was due to the increase in
costs and the decrease in production.
Operating profit decreased from R1,590 million (US$198
million) in the June quarter to R1,009 million (US$121 million)
in the September quarter due to the decrease in production.
Capital expenditure increased from R633 million (US$79
million) to R671 million (US$82 million) mainly due to
increased expenditure on technical projects, self-rescue pack
replacements and tailings storage facilities, partly offset by
lower ore reserve development.
Notional cash expenditure increased from R311,163 per
kilogram (US$1,201 per ounce) in the June quarter to
R390,163 per kilogram (US$1,469 per ounce) in the
September quarter as a result of the lower production and
increases in operating costs and capital expenditure. The
NCE margin decreased from 26 per cent to 10 per cent due to
the higher NCE partly offset by the higher gold price.
Even though the strike has been resolved it is expected to
take towards the end of November before full production will
be restored as the workforce needs to be acclimatised and
making safe procedures, such as additional support and destressing
the work areas, need to be completed. At this stage
we estimate around 116,000 ounces will be lost due to the
strike for the year.
With regard to the Ya Rona fire which started on 30 June
2012, preliminary findings regarding necessary
improvements, as identified during systems audits conducted
at the operations following the incident, have been
implemented. These included the review and updating of
standards and procedures relating to fire detection and
monitoring systems. Following an extensive sealing programme in the affected area, the fire was officially
declared extinguished on 14 August and full production has
been restored post quarter end.
Beatrix
|
|
|
Sept
2012 |
|
June
2012 |
|
|
Gold produced |
- 000’oz |
77.6 |
|
79.6 |
|
|
|
- kg |
2,415 |
|
2,477 |
|
|
Yield - underground |
- g/t |
4.2 |
|
4.4 |
|
|
- combined |
- g/t |
2.7 |
|
2.8 |
|
|
Total cash cost |
- R/kg |
297,019 |
|
273,436 |
|
|
|
- US$/oz |
1,118 |
|
1,055 |
|
|
Notional cash expenditure |
- R/kg |
368,654 |
|
347,679 |
|
|
|
- US$/oz |
1,388 |
|
1,342 |
|
|
NCE margin |
- % |
16 |
|
18 |
|
Gold production decreased by 3 per cent from 79,600 ounces
(2,477 kilograms) in the June quarter to 77,600 ounces (2,415
kilograms) in the September quarter. This was mainly due to
a decrease in underground mining grade because of the lower
grade areas currently being mined at the North section, which
contributes over half of the volume mined.
Underground tonnes milled increased from 543,000 tonnes to
551,000 tonnes, and surface tonnes milled decreased from
351,000 tonnes to 328,000 tonnes. Surface yield was
unchanged at 0.3 grams per tonne quarter on quarter.
Main development decreased from 6,117 metres in the June
quarter to 4,985 metres in the September quarter and on-reef
development decreased from 1,606 metres to 994 metres.
The decrease in development metres was incurred as a result
of safety related stoppages and the embedding of the new
communication system at the North Section to improve safety.
The weighted average value of the main reef development
decreased from 1,076 centimetre grams per tonne to 998
centimetre grams per tonne as a consequence of the grade
variability of the areas being developed.
Operating costs increased from R673 million (US$84 million)
to R715 million (US$87 million). This was mainly due to
annual wage increases, an increase in underground support
and two months of winter electricity tariffs compared with one
month in the June quarter. Total cash cost increased from
R273,436 per kilogram (US$1,055 per ounce) to R297,019
per kilogram (US$1,118 per ounce).
Operating profit decreased from R374 million (US$46 million)
in the June quarter to R341 million (US$41 million) in the
September quarter due to the higher operating costs.
Capital expenditure decreased from R188 million (US$23
million) to R176 million (US$21 million). The majority of the
capital expenditure was on infrastructure upgrades and ore
reserve development.
Notional cash expenditure increased from R347,679 per
kilogram (US$1,342 per ounce) to R368,654 per kilogram
(US$1,388 per ounce) due to the higher operating costs. The
NCE margin decreased from 18 per cent to 16 per cent mainly
due to the higher NCE partly offset by the higher gold price.
There was a minimal effect on production in the September
quarter stemming from the illegal strike by 9,000 employees
as from 21 September. The strike started on the West section
(formerly Oryx mine) and spread to the rest of the mine on 24
September. The full complement of strikers returned to work
on 18 October after an ultimatum given by management on 16
October. At this stage it is estimated that lost production amounted to around 29,000 ounces, which will be accounted
for in the December quarter.
South Deep project
|
|
|
Sept
2012 |
|
June
2012 |
|
|
Gold produced |
- 000’oz |
71.3 |
|
77.8 |
|
|
|
- kg |
2,217 |
|
2,420 |
|
|
Yield - underground |
- g/t |
5.5 |
|
5.8 |
|
|
- combined |
- g/t |
3.8 |
|
4.5 |
|
|
Total cash cost |
- R/kg |
292,377 |
|
244,215 |
|
|
|
- US$/oz |
1,101 |
|
942 |
|
|
Notional cash expenditure |
- R/kg |
577,492 |
|
512,934 |
|
|
|
- US$/oz |
2,175 |
|
1,979 |
|
|
NCE margin |
- % |
(33) |
|
(21) |
|
Gold production decreased by 8 per cent from 77,800 ounces
(2,420 kilograms) in the June quarter to 71,300 ounces (2,217
kilograms) in the September quarter due to a decrease in
underground reef delivered to the mill at slightly lower grades.
Total tonnes milled, which included 187,000 tonnes of
planned off-reef development, increased from 539,000 tonnes
to 590,000 tonnes. Underground reef yield decreased from
5.8 grams per tonne to 5.5 grams per tonne, mainly due to
reduced volumes from the high grade long-hole stope mining
at 95 3West.
Development increased from 2,952 metres in the June quarter
to 3,647 metres in the September quarter mainly due to an
increase in off-reef development at 95 3West. The new mine
capital development in phase 1, sub 95 level, increased from
887 metres to 1,042 metres and vertical development
increased from 57 metres to 108 metres. Development in the
current mine areas above 95 level increased from 2,008
metres to 2,497 metres. De-stress mining increased by 3 per
cent from 11,851 square metres in the June quarter to 12,213
square metres in the September quarter.
Operating costs increased from R599 million (US$74 million)
in the June quarter to R656 million (US$80 million) in the
September quarter, mainly due to the annual salary
increases, two months of winter electricity tariffs and an
increase in stores cost due to the increase in underground
mining volumes. Total cash cost increased from R244,215
per kilogram (US$942 per ounce) to R292,377 per kilogram
(US$1,101 per ounce) due to the decrease in gold production
and the increase in operating cost.
Operating profit decreased from R425 million (US$53 million)
in the June quarter to R309 million (US$37 million) in the
September quarter as a result of the lower revenue and the
increase in operating costs.
Capital expenditure decreased from R643 million (US$80
million) to R624 million (US$76 million). The majority of the
expenditure was spent on development, the ventilation shaft
deepening and infrastructure, the metallurgical plant
expansion, trackless equipment and the full tailings backfill
plant.
Notional cash expenditure increased from R512,934 per
kilogram (US$1,979 per ounce) in the June quarter to
R577,492 per kilogram (US$2,175 per ounce) in the
September quarter as a result of the decrease in production
and increase in operating cost, partly offset by the decrease in
capital expenditure. The NCE margin regressed from a
negative 21 per cent to a negative 33 per cent as a result of a
higher NCE partly offset by the higher gold price received.
Capital infrastructure programmes continue to meet key
delivery dates in support of the build-up to a run-rate of
700,000 ounces per annum by the end of 2015. The
ventilation shaft deepening project remains on track for
commissioning in the December 2012 quarter and the
additional rock hoisting is expected to build to a nameplate
capacity of 195,000 tonnes per month by December 2013.
This, together with the existing Main shaft capacity of 175,000
tonnes per month, is expected to be adequate to sustain the
full production of 330,000 tonnes per month. This capacity
will be available two years ahead of full production. The gold
plant expansion from 220,000 tonnes per month to 330,000
tonnes per month is under final construction, with
commissioning planned before the end of the year, three
years ahead of full production.
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