Review of Operations
Quarter ended 30 June 2020 compared with quarter ended 31 March 2020
Figures may not add as they are rounded independently.
South Africa region
South Deep
|
Ore mined |
000
tonnes |
215 |
|
275 |
|
(22)% |
Waste mined |
000
tonnes |
8 |
|
8 |
|
(9)% |
Total tonnes |
000
tonnes |
223 |
|
283 |
|
(21)% |
Grade mined – underground reef |
g/t |
6.74 |
|
5.89 |
|
14 % |
Grade mined – underground total |
g/t |
6.51 |
|
5.72 |
|
14 % |
Gold mined |
kg |
1,452 |
|
1,620 |
|
(10)% |
000’oz |
46.7 |
|
52.1 |
|
(10)% |
Destress |
m2 |
5,751 |
|
9,207 |
|
(38)% |
Development |
m |
638 |
|
902 |
|
(29)% |
Secondary support |
m |
1,273 |
|
2,332 |
|
(45)% |
Backfill |
m3 |
50,923 |
|
90,052 |
|
(43)% |
Ore milled – underground reef |
000
tonnes |
210 |
|
291 |
|
(28)% |
Ore milled - underground waste |
000
tonnes |
8 |
|
5 |
|
60 % |
Ore milled – surface |
000
tonnes |
191 |
|
250 |
|
(24)% |
Total tonnes milled |
000
tonnes |
408 |
|
546 |
|
(25)% |
Yield – underground reef |
g/t |
5.80 |
|
6.38 |
|
(9)% |
Surface yield |
g/t |
0.10 |
|
0.11 |
|
(10)% |
Total yield |
g/t |
3.03 |
|
3.45 |
|
(12)% |
Gold produced |
kg |
1,238 |
|
1,885 |
|
(34)% |
000’oz |
39.8 |
|
60.6 |
|
(34)% |
Gold sold |
kg |
1,238 |
|
1,803 |
|
(31)% |
000’oz |
39.8 |
|
58.0 |
|
(31)% |
AISC – revised interpretation guidance (WGC November 2018) |
R/kg |
735,521 |
|
592,925 |
|
24 % |
US$/oz |
1,227 |
|
1,227 |
|
— % |
AIC |
R/kg |
738,079 |
|
597,181 |
|
24 % |
US$/oz |
1,231 |
|
1,236 |
|
— % |
Sustaining capital expenditure |
Rm |
118.0 |
|
112.7 |
|
5 % |
US$m |
6.5 |
|
7.5 |
|
(14)% |
Non-sustaining capital expenditure |
Rm |
3.2 |
|
7.7 |
|
(59)% |
US$m |
0.1 |
|
0.5 |
|
(71)% |
Total capital expenditure |
Rm |
121.2 |
|
120.4 |
|
1 % |
US$m |
6.6 |
|
8.0 |
|
(17)% |
South Deep was significantly impacted by the COVID-19 pandemic and related lockdown restrictions during Q2 2020. The mine was placed on care and maintenance for roughly a third of the quarter and operated well below its full labour complement for the remainder, in compliance with the government-imposed restrictions.
Gold production decreased by 34% to 1,238kg (39,800oz) in the June quarter from 1,885kg (60,600oz) in the March quarter due to a decrease in both volume and reef yield.
Underground reef grade mined increased by 14% to 6.74g/t in the June quarter from 5.89g/t in the March quarter as a result of an increase in stoping relative to development and destress. However, reef yield decreased by 9% to 5.80g/t in the June quarter from 6.38g/t in the March quarter. The relatively high grade recovered is a result of improved stoping performance together with an improvement in the ratio of higher-grade stoping tonnes to development and destress tonnes. Grade was also favourably impacted by the increase in volumes from North of Wrench as extraction from the higher-grade 3W and 4W proximal corridors gradually increased.
Development decreased by 29% to 638m in the June quarter from 902m in the March quarter, while destress decreased by 38% to 5,751m2 in the June quarter from 9,207m2 in the March quarter. These reductions are mainly as a result of the imposed COVID-19 restrictions. Secondary support and backfill decreased by 45% quarter-on-quarter and 43% quarter-on-quarter, respectively, as these activities were restarted after the other mining activities post the care and maintenance period.
All-in cost increased by 24% to R738,079/kg (US$1,231/oz) in the June quarter from R597,181/kg (US$1,236/oz) in the March quarter. The rand per kilogram increases were mostly driven by lower gold sold which was as a direct result of the COVID-19 lockdown restrictions and higher capital expenditure, partially offset by lower cost of sales before amortisation and depreciation.
West Africa region
Ghana
Tarkwa
|
Ore mined |
000
tonnes |
3,024 |
|
3,319 |
|
(9)% |
Waste (Capital) |
000
tonnes |
13,495 |
|
7,956 |
|
70 % |
Waste (Operational) |
000
tonnes |
7,382 |
|
10,155 |
|
(27)% |
Total waste mined |
000
tonnes |
20,877 |
|
18,111 |
|
15 % |
Total tonnes mined |
000
tonnes |
23,901 |
|
21,430 |
|
12 % |
Strip ratio |
waste/ore |
6.9 |
|
5.5 |
|
25 % |
Grade mined |
g/t |
1.37 |
|
1.29 |
|
6 % |
Gold mined |
000’oz |
133.2 |
|
137.9 |
|
(3)% |
Tonnes milled |
000
tonnes |
3,835 |
|
3,479 |
|
10 % |
Yield |
g/t |
1.17 |
|
1.14 |
|
3 % |
Gold produced |
000’oz |
144.5 |
|
127.1 |
|
14 % |
Gold sold |
000’oz |
144.5 |
|
127.1 |
|
14 % |
AISC – revised interpretation guidance (WGC November 2018) |
US$/oz |
982 |
|
994 |
|
(1)% |
AIC |
US$/oz |
982 |
|
994 |
|
(1)% |
Sustaining capital expenditure |
US$m |
38.8 |
|
28.7 |
|
35 % |
Non-sustaining expenditure |
US$m |
— |
|
— |
|
— % |
Total capital expenditure |
US$m |
38.8 |
|
28.7 |
|
35 % |
Gold production increased by 14% to 144,500oz in the June quarter from 127,100oz in the March quarter mainly due to higher tonnes milled. Yield increased by 3% to 1.17g/t in the June quarter from 1.14g/t in the March quarter, driven by a 6% increase in mined grade to 1.37g/t in the June quarter in line with the mining sequence. The difference between the mined grade of 1.37g/t and the yield of 1.17g/t is attributable mainly to the additional volumes of lower grade stockpiles treated.
Total tonnes mined, including capital waste stripping, increased by 12% to 23.9 million tonnes in the June quarter from 21.4 million tonnes in the March quarter due to improved fleet performance and additional production days in the June quarter.
Ore processed in the June quarter included 1.1Mt of stockpiles at an average head grade of 0.80g/t compared to 0.70Mt of stockpiles at an average head grade of 0.77g/t processed in the March quarter.
All-in cost decreased by 1% to US$982/oz in the June quarter from US$994/oz in the March quarter due to higher gold sold, partially offset by higher cost of sales before amortisation and depreciation and higher capital expenditure
Capital expenditure increased by 35% to US$38.8 million in the June quarter from US$28.7 million in the March quarter driven by higher capital waste stripping.
Damang
|
Ore mined |
000
tonnes |
1,470 |
|
740 |
|
99 % |
|
Waste (Capital) |
000
tonnes |
— |
|
8 |
|
(100)% |
|
Waste (Operational) |
000
tonnes |
6,671 |
|
5,008 |
|
33 % |
|
Total waste mined |
000
tonnes |
6,671 |
|
5,016 |
|
33 % |
|
Total tonnes mined |
000
tonnes |
8,141 |
|
5,756 |
|
41 % |
|
Strip ratio |
waste/ore |
4.5 |
|
6.8 |
|
(34)% |
|
Grade mined |
g/t |
1.51 |
|
1.41 |
|
7 % |
|
Gold mined |
000’oz |
71.2 |
|
33.6 |
|
112 % |
|
Tonnes milled |
000
tonnes |
1,277 |
|
1,150 |
|
11 % |
|
Yield |
g/t |
1.24 |
|
1.00 |
|
24 % |
|
Gold produced |
000’oz |
50.8 |
|
36.9 |
|
38 % |
|
Gold sold |
000’oz |
50.8 |
|
36.9 |
|
38 % |
|
AISC – revised interpretation guidance (WGC November 2018) |
US$/oz |
1,108 |
|
1,734 |
|
(36)% |
|
AIC |
US$/oz |
1,149 |
|
1,804 |
|
(36)% |
|
Sustaining capital expenditure |
US$m |
2.1 |
|
1.6 |
|
29 % |
|
Non-sustaining expenditure |
US$m |
2.1 |
|
2.6 |
|
(20)% |
|
Total capital expenditure |
US$m |
4.2 |
|
4.2 |
|
(1)% |
|
Gold production increased by 38% to 50,800oz in the June quarter from 36,900oz in the March quarter mainly due to higher yield and higher tonnes processed. Yield increased by 24% to 1.24g/t in the June quarter from 1.00g/t in the March quarter due to higher grades fed from the Damang Complex as the mining transitioned from the Huni Sandstones to the Tarkwa Phylite deposits. Mining has transitioned through the bulk of the Huni Sandstone during the quarter, with minimal volumes of Huni Sandstone remaining. The percentage ore mined from the Tarkwa Phylite deposits increased to 35% in the June quarter from 20% in the March quarter.
Damang had a slow start to the year following the change in the mining contractor at the Damang Complex at the end of December 2019. In the June quarter the mining contractor managed to increase the mining fleet capacity and together with the additional production days this allowed the mine to accelerate mining in an effort to expose more high grade areas earlier. This is to compensate for the higher than usual grade variability associated with the Huni Sandstone lithology and to derisk the second half of the year. The result of this is a 41% increase in total tonnes mined in the June quarter compared to the March quarter.
Ore tonnes mined increased by 99% to 1.5 million tonnes in the June quarter from 0.7 million tonnes in the March quarter driven by improved equipment availability and mining in exposed ore areas.
Gold mined increased by 112% to 71,200oz in the June quarter from 33,600oz in the March quarter due to higher ore tonnes and grade mined.
Tonnes processed increased by 11% to 1.3 million tonnes in the June quarter from 1.2 million tonnes in the March quarter mainly due to a change in the production calendar and higher plant equipment availability.
All-in cost decreased by 36% to US$1,149/oz in the June quarter from US$1,804/oz in the March quarter mainly due to higher gold sold and lower cost of sales before amortisation and depreciation. Cost of sales before amortisation and depreciation decreased by 19% to US$46m in the June quarter from US$57m in the March quarter mainly due to a gold-in-process credit of US$11m in the June quarter compared with a gold-in-process charge of US$11m in the March quarter. This was as a result of the higher ore tonnes mined resulting in an addition to the stockpile.
All-in cost is expected to decrease significantly in H2 2020 when mining will occur in the higher grade part of the ore body at the Damang Complex pits.
Sustaining capital expenditure increased by 29% to US$2.1m in the June quarter from US$1.6m in the March quarter due to expenditure incurred on the CIL agitator, tertiary crushers and plant upgrades. Non-sustaining capital expenditure decreased by 20% to US$2.1m in the June quarter from US$2.6m in the March quarter due to timing of capital expenditure for the second phase of the Far East Tailings Storage Facility (FETSF) raise.
Asanko (Equity accounted Joint Venture)
|
Ore mined |
000
tonnes |
1,361 |
|
1,911 |
|
(29)% |
|
Waste (Capital) |
000
tonnes |
648 |
|
585 |
|
11 % |
|
Waste (Operational) |
000
tonnes |
7,480 |
|
6,466 |
|
16 % |
|
Total waste mined |
000
tonnes |
8,128 |
|
7,051 |
|
15 % |
|
Total tonnes mined |
000
tonnes |
9,488 |
|
8,961 |
|
6 % |
|
Strip ratio |
waste/ore |
6.0 |
|
3.7 |
|
62 % |
|
Grade mined |
g/t |
1.41 |
|
1.55 |
|
(9)% |
|
Gold mined |
000’oz |
61.8 |
|
95.1 |
|
(35)% |
|
Tonnes milled |
000
tonnes |
1,638 |
|
1,400 |
|
17 % |
|
Yield |
g/t |
1.31 |
|
1.47 |
|
(11)% |
|
Gold produced |
000’oz |
69.0 |
|
66.3 |
|
4 % |
|
Gold sold |
000’oz |
61.4 |
|
67.8 |
|
(10)% |
|
AISC – revised interpretation guidance (WGC November 2018) |
US$/oz |
1,067 |
|
805 |
|
32 % |
|
AIC |
US$/oz |
1,305 |
|
881 |
|
48 % |
|
Sustaining capital expenditure |
US$m |
10.2 |
|
1.9 |
|
444 % |
|
Non-sustaining expenditure |
US$m |
12.5 |
|
3.5 |
|
259 % |
|
Total capital expenditure |
US$m |
22.7 |
|
5.3 |
|
324 % |
|
All figures in table on a 100% basis.
Gold production increased by 4% to 69,000oz (100% basis) in the June quarter from 66,300oz (100% basis) in the March quarter mainly due to an increase in tonnes milled. Yield decreased by 11% to 1.31g/t in the June quarter from 1.47g/t in the March quarter.
Total tonnes mined increased by 6% to 9.5 million tonnes in the June quarter from 9.0 million tonnes in the March quarter on the back of improved contractor equipment performance. Ore tonnes mined decreased by 29% to 1.4 million tonnes due to depletion of the Nkran Cut 2 pit, which was completed soon after March 2020.
Waste tonnes mined increased by 15% to 8.1 million tonnes in the June quarter from 7.1 million tonnes in the March quarter underpinned by improved contractor performance at the Akwasiso pit which enabled the mine to catch up on the planned strip.
All-in cost increased by 48% to US$1,305/oz in the June quarter from US$881/oz in the March quarter due to lower ounces sold, higher cost of sales before amortisation and depreciation and higher capital expenditure.
Sustaining capital expenditure increased by 444% to US$10.2m in the June quarter from US$1.9m in the March quarter mainly due to commencement of the TSF raise. Non-sustaining capital expenditure increased by 259% to US$12.5m in the June quarter from US$3.5m in the March quarter due to timing on the works on the Tetrem Resettlement Action Plan (RAP) and other projects.
Revised AIC guidance for Asanko is US$1,316/oz (original guidance: US$1,130/oz), costs increased due to a number of factors. Additional funds were committed to exploration to capitalise on the upside potential on the lease. In addition, to derisk the future, it was decided to bring forward expenditure on a tailings wall lift from 2021. The timing of the Tetrem relocation project resulted in additional expenditure being brought forward into 2020. The overall project remains on budget. Additional volumes of waste are scheduled to be moved at the Akwasiso and Esaase pits to provide additional flexibility for 2020 and beyond.
South America region
Peru
Cerro Corona
|
Ore mined |
000
tonnes |
1,465 |
|
2,795 |
|
(48)% |
|
Waste mined |
000
tonnes |
1,116 |
|
3,184 |
|
(65)% |
|
Total tonnes mined |
000
tonnes |
2,581 |
|
5,979 |
|
(57)% |
|
Grade mined – gold |
g/t |
0.85 |
|
0.79 |
|
7 % |
|
Grade mined – copper |
per cent |
0.44 |
|
0.41 |
|
6 % |
|
Gold mined |
000’oz |
39.9 |
|
71.3 |
|
(44)% |
|
Copper mined |
000
tonnes |
6,417 |
|
11,533 |
|
(44)% |
|
Tonnes milled |
000
tonnes |
1,690 |
|
1,675 |
|
1 % |
|
Gold recovery |
per cent |
67.1 |
|
67.3 |
|
— % |
|
Copper recovery |
per cent |
87.7 |
|
88.1 |
|
— % |
|
Yield – Gold |
g/t |
0.53 |
|
0.71 |
|
(26)% |
|
– Copper |
per cent |
0.38 |
|
0.43 |
|
(13)% |
|
– Combined |
eq g/t |
0.85 |
|
1.16 |
|
(26)% |
|
Gold produced |
000’oz |
27.4 |
|
36.9 |
|
(26)% |
|
Copper produced |
tonnes |
6,084 |
|
6,905 |
|
(12)% |
|
Total equivalent gold produced |
000’
eq oz |
46.3 |
|
62.3 |
|
(26)% |
|
Total equivalent gold sold |
000’
eq oz |
52.6 |
|
60.4 |
|
(13)% |
|
AISC – revised interpretation guidance (WGC November 2018) |
US$/oz |
669 |
|
446 |
|
50 % |
|
AISC |
US$/
eq oz |
1,086 |
|
714 |
|
52 % |
|
AIC |
US$/oz |
783 |
|
647 |
|
21 % |
|
AIC |
US$/
eq oz |
1,152 |
|
837 |
|
38 % |
|
Sustaining capital expenditure |
US$m |
4.4 |
|
4.5 |
|
(2)% |
|
Non-sustaining expenditure |
US$m |
3.4 |
|
7.1 |
|
(53)% |
|
Total capital expenditure |
US$m |
7.7 |
|
11.6 |
|
(33)% |
|
The Cerro Corona operation was significantly impacted by the COVID-19 pandemic during the June quarter, with gold production decreasing by 26% to 27,400oz from 36,900oz in the March quarter and copper production decreasing by 12% to 6,084 tonnes from 6,905 tonnes in the March quarter. With tonnes milled remaining flat quarter-on-quarter, the fall in production was driven entirely by lower grades processed, as lower grade stockpiles were used to supplement the fresh ore mined. Equivalent gold production decreased by 26% to 46,300oz in the June quarter from 62,300oz in the March quarter on the back of the lower gold and copper grades processed as a result of the restrictions relating to COVID-19 (13Koz), as well as a lower price factor (3Koz).
Total tonnes mined decreased by 57% to 2.6 million tonnes in the June quarter from 6.0 million tonnes in the March quarter due to a reduced mining fleet resulting from the COVID-19 restrictions. The team prioritised ore over waste mining in order to mitigate the COVID-19 restrictions impact on production. The deferral of waste will impact the development sequence of the mine which has been modified to increase the waste tonnes in Q4 2020, as well as in 2021 and 2022. The mining and stockpiling of low grade ore will also be reduced in 2020. In the longer term the integrity of the 2030 feasibility objectives remain intact. Low grade ore stockpiles decreased by 0.3 million tonnes to 5.8 million tonnes in the June quarter from 6.1 million tonnes in the March quarter. Total low grade ore stockpiled has an average gold grade of 0.67 grams per tonne and an average copper grade of 0.31 per cent.
Gold yield decreased by 26% to 0.53g/t in the June quarter from 0.71g/t in the March quarter due to a 26% decrease in gold head grade processed to 0.78g/t in the June quarter from 1.06g/t in the March quarter. Similarly, copper yield decreased by 13% to 0.38% in the June quarter from 0.43% in the March quarter due to a decrease in head grade processed.
All-in cost per gold ounce increased by 21% to US$783/oz in the June quarter from US$647/oz in the March quarter driven by the negative impact of inventory movement resulting from lower closing concentrate stocks, together with lower gold sold, partially offset by higher by-product credits and lower capital expenditure. All-in cost per equivalent ounce increased by 38% to US$1,152 per equivalent ounce in the June quarter from US$837 per equivalent ounce in the March quarter driven by the negative impact of inventory movement and lower equivalent ounces sold.
Capital expenditure decreased by 33% to US$7.7 million in the June quarter from US$11.6 million in the March quarter due to reduced construction activities at the tailings dam and waste storage facilities, on the back of the COVID-19 restrictions.
Australia region
St Ives
|
Underground |
|
|
|
|
|
|
|
Ore mined |
000
tonnes |
484 |
|
358 |
|
35 % |
|
Waste mined |
000
tonnes |
214 |
|
230 |
|
(7)% |
|
Total tonnes mined |
000
tonnes |
698 |
|
588 |
|
19 % |
|
Grade mined |
g/t |
5.46 |
|
4.66 |
|
17 % |
|
Gold mined |
000’oz |
85.0 |
|
53.5 |
|
59 % |
|
Surface |
|
|
|
— % |
|
Ore mined |
000
tonnes |
791 |
|
633 |
|
25 % |
|
Surface waste (Capital) |
000
tonnes |
1,331 |
|
474 |
|
181 % |
|
Surface waste (Operational) |
000
tonnes |
1,970 |
|
1,532 |
|
29 % |
|
Total waste mined |
000
tonnes |
3,300 |
|
2,006 |
|
65 % |
|
Total tonnes mined |
000
tonnes |
4,092 |
|
2,639 |
|
55 % |
|
Grade mined |
g/t |
1.21 |
|
1.63 |
|
(26)% |
|
Gold mined |
000’oz |
30.7 |
|
33.2 |
|
(8)% |
|
Strip ratio |
waste/ore |
4.2 |
|
3.2 |
|
31 % |
|
Total (Underground and Surface) |
|
|
|
|
|
|
|
Total ore mined |
000
tonnes |
1,275 |
|
990 |
|
29 % |
|
Total grade mined |
g/t |
2.82 |
|
2.72 |
|
4 % |
|
Total tonnes mined |
000
tonnes |
4,789 |
|
3,227 |
|
48 % |
|
Total gold mined |
000’oz |
115.6 |
|
86.7 |
|
33 % |
|
Tonnes milled |
000 tonnes |
1,362 |
|
1,154 |
|
18 % |
|
Yield – underground |
g/t |
4.58 |
|
4.22 |
|
9 % |
|
Yield – surface |
g/t |
1.06 |
|
1.65 |
|
(35)% |
|
Yield – combined |
g/t |
2.17 |
|
2.51 |
|
(14)% |
|
Gold produced |
000’oz |
94.9 |
|
93.1 |
|
2 % |
|
Gold sold |
000’oz |
103.8 |
|
93.3 |
|
11 % |
|
AISC – revised interpretation guidance (WGC November 2018) |
A$/oz |
1,353 |
|
1,339 |
|
1 % |
|
US$/oz |
878 |
|
891 |
|
(1)% |
|
AIC |
A$/oz |
1,388 |
|
1,364 |
|
2 % |
|
US$/oz |
900 |
|
907 |
|
(1)% |
|
Sustaining capital expenditure |
A$m |
26.3 |
|
24.8 |
|
6 % |
|
US$m |
17.0 |
|
16.5 |
|
3 % |
|
Non-sustaining capital expenditure |
A$m |
3.6 |
|
2.3 |
|
55 % |
|
US$m |
2.3 |
|
1.5 |
|
51 % |
|
Total capital
expenditure |
A$m |
29.8 |
|
27.2 |
|
10 % |
|
US$m |
19.3 |
|
18.1 |
|
7 % |
|
Gold production increased by 2% to 94,900oz in the June quarter from 93,100oz in the March quarter as an 18% increase in tonnes milled was partially offset by a 14% decrease in yield.
Ore tonnes mined at the underground mines increased by 35% to 484,000t in the June quarter from 358,000t in the March quarter with ramp-up of ore production at Hamlet North. Hamlet North increased to 98,000t from 56,000t and Invincible increased to 386,000t from 302,000t.
Grade mined at the underground operations increased by 17% to 5.46g/t in the June quarter from 4.66g/t in the March quarter mainly due to a ramp up at the higher grade Hamlet North mine. The Hamlet North mine has moved from a developmental stage into a production stage producing planned higher grade ore to complement the ore from the Invincible underground mine.
Total tonnes mined in the open pits increased by 55% to 4.1 million tonnes in the June quarter from 2.6 million tonnes in the March quarter. The increased tonnes mined resulted from higher productivity and utilisation driven by improved underfoot conditions. Increased focus on in pit dewatering, ground water management, bench progression planning and double bench mining has resulted in what would normally be soft and boggy bench floors to be significantly more consolidated leading to better running surfaces for the trucks with less operational delays and improved operational efficiencies. This had a flow on effect on increasing the total material moved (both ore and waste).
Ore tonnes mined at the open pits increased by 25% to 791,000t in the June quarter from 633,000t in the March quarter, with all open pit ore being sourced from the Neptune pit. Higher density grade control drilling in the Neptune pit identified that a section of the stage 5 pit that was previously thought to be waste was in fact ore. This material has been the major contributing factor to the increased ore tonnes.
Surface mined grade decreased by 26% to 1.21g/t in the June quarter from 1.63g/t in the March quarter, following the conclusion of mining activities at the higher grade Neptune stage 2 pit in the March quarter.
Total tonnes processed increased by 18% to 1.36 million tonnes in the June quarter from 1.15 million tonnes in the March quarter mainly due to the additional production days.
All-in cost increased by 2% to A$1,388/oz (US$900/oz) in the June quarter from A$1,364/oz (US$907/oz) in the March quarter due to higher cost of sales before amortisation and depreciation and higher capital expenditure, partially offset by higher gold sold.
Capital expenditure increased by 10% to A$30 million (US$19 million) in the June quarter from A$27 million (US$18 million) in the March quarter with increased exploration drilling in the June quarter.
Agnew
|
Underground ore mined |
000
tonnes |
354 |
|
348 |
|
2 % |
|
Underground waste mined |
000
tonnes |
210 |
|
186 |
|
13 % |
|
Total tonnes mined |
000
tonnes |
564 |
|
534 |
|
6 % |
|
Grade mined – underground |
g/t |
5.33 |
|
4.77 |
|
12 % |
|
Gold mined |
000’oz |
60.6 |
|
53.3 |
|
14 % |
|
Tonnes milled |
000
tonnes |
377 |
|
322 |
|
17 % |
|
Yield |
g/t |
4.83 |
|
4.58 |
|
5 % |
|
Gold produced |
000’oz |
58.5 |
|
47.4 |
|
24 % |
|
Gold sold |
000’oz |
57.2 |
|
48.3 |
|
18 % |
|
AISC – revised interpretation guidance (WGC November 2018) |
A$/oz |
1,723 |
|
1,574 |
|
9 % |
|
US$/oz |
1,119 |
|
1,047 |
|
7 % |
|
AIC |
A$/oz |
1,796 |
|
1,637 |
|
10 % |
|
US$/oz |
1,167 |
|
1,090 |
|
7 % |
|
Sustaining capital expenditure |
A$m |
19.9 |
|
13.2 |
|
51 % |
|
US$m |
12.9 |
|
8.8 |
|
47 % |
|
Non-sustaining capital expenditure |
A$m |
4.2 |
|
3.1 |
|
36 % |
|
US$m |
2.7 |
|
2.0 |
|
33 % |
|
Total capital
expenditure |
A$m |
24.0 |
|
16.2 |
|
48 % |
|
US$m |
15.6 |
|
10.8 |
|
45 % |
|
Gold production increased by 24% to 58,500oz in the June quarter from 47,400oz in the March quarter due to an increase in grade of ore mined and processed, as well as an increase in tonnes processed.
Mined grade increased by 12% to 5.33g/t in the June quarter from 4.77g/t in the March quarter. Ore development at Waroonga during the March quarter ensured access into the higher grade Waroonga North lower and Kath areas and resulted in improved mined grade in the June quarter.
Tonnes processed increased by 17% to 377,000t in the June quarter from 322,000t in the March quarter underpinned primarily by the additional production days in the June quarter compared to the March quarter.
The difference between the mined grade and the yield in the June quarter is due to an additional 23kt of ROM tonnes processed at a grade of 2.7g/t.
All-in cost increased by 10% to A$1,796/oz (US$1,167/oz) in the June quarter from A$1,637/oz (US$1,090/oz) in the March quarter mainly due to higher cost of sale before amortisation and depreciation and higher capital expenditure, partially offset by higher gold sold.
Capital expenditure increased by 48% to A$24 million (US$16 million) in the June quarter from A$16 million (US$11 million) in the March quarter driven by the timing of increased capital development in the Sheba and Kath areas in order to derisk the remainder of the year, as well as increased exploration drilling during the quarter.
Granny Smith
|
Underground ore mined |
000
tonnes |
452 |
|
418 |
|
8 % |
|
Underground waste mined |
000
tonnes |
169 |
|
123 |
|
38 % |
|
Total tonnes mined |
000
tonnes |
621 |
|
540 |
|
15 % |
|
Grade mined – underground |
g/t |
5.05 |
|
5.37 |
|
(6)% |
|
Gold mined |
000’oz |
73.5 |
|
72.1 |
|
2 % |
|
Tonnes milled |
000
tonnes |
448 |
|
429 |
|
5 % |
|
Yield |
g/t |
4.68 |
|
4.83 |
|
(3)% |
|
Gold produced |
000’oz |
67.5 |
|
66.6 |
|
1 % |
|
Gold sold |
000’oz |
67.4 |
|
66.6 |
|
1 % |
|
AISC – revised interpretation guidance (WGC November 2018) |
A$/oz |
1,524 |
|
1,157 |
|
32 % |
|
US$/oz |
991 |
|
770 |
|
29 % |
|
AIC |
A$/oz |
1,606 |
|
1,338 |
|
20 % |
|
US$/oz |
1,043 |
|
890 |
|
17 % |
|
Sustaining capital expenditure |
A$m |
23.7 |
|
7.7 |
|
209 % |
|
US$m |
15.5 |
|
5.1 |
|
203 % |
|
Non-sustaining capital expenditure |
A$m |
5.5 |
|
12.0 |
|
(54)% |
|
US$m |
3.5 |
|
8.0 |
|
(56)% |
|
Total capital expenditure |
A$m |
29.2 |
|
19.7 |
|
48 % |
|
US$m |
19.0 |
|
13.1 |
|
45 % |
|
Gold production increased by 1% to 67,500oz in the June quarter from 66,600oz in the March quarter.
Total tonnes mined increased by 15% to 621,000t in the June quarter
from 540,000t in the March quarter due to additional production days
in the June quarter compared to the March quarter.
All-in cost increased by 20% to A$1,606/oz (US$1,043/oz) in the June
quarter from A$1,338/oz (US$890/oz) in the March quarter due to
increased capital expenditure, additional contractor labour costs and
employee flight and accommodation costs incurred following the
COVID-19 pandemic, partially offset by higher gold sold.
Capital expenditure increased by 48% to A$29 million (US$19 million) in the June quarter from A$20 million (US$13 million) in the March quarter due to timing of expenditure.
The increase in sustaining capital expenditure and decrease in non-sustaining capital expenditure was due to the reclassification of the Zone 110/120 areas which turned cash flow positive resulting in capital costs moving from non-sustaining to sustaining in accordance with World Gold Council guidelines.
Gruyere
|
Ore mined |
000
tonnes |
2,125 |
|
1,837 |
|
16 % |
Waste (Capital) |
000
tonnes |
2,879 |
|
1,460 |
|
97 % |
Waste (Operational) |
000
tonnes |
946 |
|
1,324 |
|
(29)% |
Total waste mined |
000
tonnes |
3,825 |
|
2,783 |
|
37 % |
Total tonnes mined |
000
tonnes |
5,950 |
|
4,621 |
|
29 % |
Grade mined |
g/t |
1.06 |
|
1.06 |
|
— % |
Gold mined |
000’oz |
72.4 |
|
62.4 |
|
16 % |
Strip ratio |
waste/ore |
1.8 |
|
1.5 |
|
20 % |
Tonnes milled |
000
tonnes |
2,187 |
|
1,926 |
|
14 % |
Yield |
g/t |
1.02 |
|
0.96 |
|
6 % |
Gold produced |
000’oz |
71.9 |
|
59.6 |
|
21 % |
Gold sold |
000’oz |
70.2 |
|
59.8 |
|
17 % |
AISC – revised interpretation guidance (WGC November 2018) |
A$/oz |
1,345 |
|
1,180 |
|
14 % |
US$/oz |
874 |
|
785 |
|
11 % |
AIC |
A$/oz |
1,363 |
|
1,188 |
|
15 % |
US$/oz |
886 |
|
791 |
|
12 % |
Sustaining capital expenditure – 50% basis |
A$m |
10.8 |
|
3.7 |
|
193 % |
US$m |
7.0 |
|
2.4 |
|
188 % |
Non-sustaining capital expenditure – 50% basis |
A$m |
0.6 |
|
0.2 |
|
166 % |
US$m |
0.4 |
|
0.2 |
|
161 % |
Total capital expenditure – 50% basis |
A$m |
11.4 |
|
3.9 |
|
191 % |
US$m |
7.4 |
|
2.6 |
|
186 % |
Mine physicals in table on a 100% basis.
Gold production increased by 21% to 71,900oz in the June quarter from 59,600oz in the March quarter due to increased ore processed and a drawdown of gold-in-circuit.
Ore tonnes mined increased by 16% to 2.13Mt in the June quarter from 1.84Mt in the March quarter with increased availability of production drills compared to the March quarter.
Tonnes processed increased by 14% to 2.19Mt in the June quarter from 1.93Mt in the March quarter with increased availability at the processing plant following an extended planned shutdown in the March quarter to replace mill liners and conduct necessary works to enhance the durability of high wear areas in the crushing and grinding circuits.
All-in cost increased by 15% to A$1,363/oz (US$886/oz) in the June quarter from A$1,188/oz (US$791/oz) in the March quarter due to increased capital expenditure and higher cost of sale before amortisation and depreciation, partially offset by increased gold sold.
Capital expenditure (on a 50% basis) increased by 191% to A$11 million (US$7 million) in the June quarter from A$4 million (US$3 million) in the March quarter. During the June quarter, pre-strip activities at the Gruyere pit stage 3 commenced and work accelerated on a lift of the tailings storage facility.
|