West Africa region

GHANA

Tarkwa

Gold production increased by 15 per cent from 135,800 ounces in the March quarter to 156,200 ounces in the June quarter due to higher grades mined and processed.

Total tonnes mined, including capital stripping, increased from 25.7 million tonnes in the March quarter to 26.7 million tonnes in the June quarter mainly due to improved excavator and drill rig availability. Ore tonnes mined decreased from 3.9 million tonnes to 3.4 million tonnes. Operational waste tonnes mined decreased from 8.2 million tonnes to 7.8 million tonnes while capital waste tonnes mined increased from 13.6 million tonnes to 15.5 million tonnes. Head grade mined increased from 1.37 grams per tonne to 1.49 grams per tonne due to mining of the Teberebie pillar and surrounding high grades areas in line with the mining sequence. The strip ratio increased from 5.5 to 6.8.

The CIL plant throughput was similar at 3.40 million tonnes despite the continuation, and worsening, of regulated power load shedding. Realised yield from the CIL plant increased from 1.24 grams per tonne in the March quarter to 1.42 grams per tonne in the June quarter due to higher head grades. The CIL plant production increased from 135,800 ounces to 156,200 ounces. The 156,200 ounces produced by the CIL plant was an all-time record due to both record throughput and head grade mined from the pit.

Net operating costs, including gold-in-process movements, increased from US$82 million in the March quarter to US$87 million in the June quarter mainly due to a drawdown of gold-in-circuit of US$4 million in the June quarter compared with a build-up of US$3 million in the March quarter, partially offset by lower operating costs.

Operating profit increased from US$84 million in the March quarter to US$100 million in the June quarter as a result of the higher gold sold.

Capital expenditure decreased from US$85 million to US$48 million with the majority of expenditure on pre-stripping. The March quarter included US$46 million for fleet replacement.

All-in sustaining costs and total all-in cost decreased from US$1,299 per ounce in the March quarter to US$938 per ounce in the June quarter mainly due to lower capital expenditure and increased gold sold, partially offset by higher net operating costs.

Damang

Gold production increased by 6 per cent from 39,000 ounces in the March quarter to 41,500 ounces in the June quarter mainly due to higher tonnes processed.

Total tonnes mined, including capital stripping, decreased marginally from 5.4 million tonnes in the March quarter to 5.1 million tonnes in the June quarter.

Ore tonnes mined increased from 1.0 million tonnes to 1.3 million tonnes. Operational waste tonnes mined decreased from 4.4 million tonnes in the March quarter to 3.8 million tonnes in the June quarter. Head grade mined decreased from 1.30 grams per tonne to 1.22 grams per tonne. The lower head grade was mainly due to less high grade ore exposed in the pits during the June quarter and in line with the mining schedule. The grade is planned to improve in the September quarter. The strip ratio decreased from 4.3 to 2.9.

Yield decreased from 1.19 grams per tonne to 1.18 grams per tonne due to lower grades mined and processed in the June quarter.

Tonnes processed increased from 1.02 million tonnes in the March quarter to 1.09 million tonnes in the June quarter due to an increase in plant utilisation from 87 per cent in the March quarter to 90 per cent in the June quarter. The March quarter was affected by increased power interruptions from the grid.

Net operating costs, including gold-in-process movements, increased from US$44 million to US$50 million due to a US$2 million drawdown of inventory in the June quarter compared with a US$1 million build-up of inventory in the March quarter and an increase in tonnes treated. In addition, fuel costs increased due to the utilisation of Gensets to generate power as a result of increased power load shedding requirements.

Operating profit decreased from US$4 million in the March quarter to US$nil million in the June quarter due to the higher operating costs, partially offset by higher gold sold.

Capital expenditure was similar at US$4 million with the majority spent on the processing plant upgrade and heavy vehicle equipment components.

All-in sustaining costs and total all-in cost increased from US$1,299 per ounce in the March quarter to US$1,370 per ounce in the June quarter due to the higher operating costs, partially offset by higher gold sold.