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GDO - Gold One International Limited - Quarterly Activities Report - Quarter
Ended 30 September 2011
Gold One International Limited
Registered in Western Australia under the Corporations Act, 2001 (Cth)
Registration number ACN: 094 265 746
Registered as an external company in the Republic of South Africa
Registration number: 2009/000032/10
Share code on the ASX/JSE: GDO
ISIN: AU000000GDO5
OTCQX International: GLDZY
("Gold One" or the "company")
Quarterly Activities Report - Quarter Ended 30 September 2011
- Net cash flow from operations increased quarter-on-quarter by 97% to US$
30.69 million (ZAR 218.7 million)
- Cash and gold receivables balance increased quarter-on-quarter by 72% to
US$ 43.31 million (ZAR 342.1 million)
- Modder East quarterly cash costs of US$ 478/oz
- 23% increase in quarterly production to 35,128 ounces, exceeding guidance
of 34,000 ounces
- 2011 production of 89,827 for the year to date
- Gold One takes over daily management of Rand Uranium and initiates Uranium
Project review
Gold One International Limited is pleased to announce the company`s September
2011 quarter results, which showed a production increase of 23% to 35,128
ounces compared to the previous quarter. The company is on track to meet its
2011 production target of 120,000 ounces, having produced 89,827 ounces for
the year so far, commencing the December 2011 quarter some 2,800 ounces ahead
of initial guidance.
The significant increase in gold production, combined with higher gold
prices, resulted in group gold revenue for the quarter under review of US$
59.72 million (ZAR 425.6 million) while group cash operating costs were US$
17.86 million (ZAR 127.3 million), resulting in a positive operating cash
flow of US$ 41.86 million (ZAR 298.3 million). The cash cost for the group
was US$ 478/oz with a total cost* of US$ 744/oz recorded during the quarter.
Gold One ended the September 2011 quarter with US$ 43.31 million (ZAR 342.1
million) of cash on hand and gold receivables (including restricted cash of
US$ 4.53 million (ZAR 35.8 million).
In line with the company`s growth strategy, Gold One made significant headway
on both the Rand Uranium acquisition and the Jintu transaction during the
September 2011 quarter. Most pleasing was the support received for the Jintu
transaction, with more than 60% of the eligible shareholders participating in
the vote and over 99% voting in favour of the injection of at least A$ 150
million in new capital into Gold One by way of issue of shares to the
consortium.
The Rand Uranium acquisition is still subject to the necessary consents being
obtained from the Department of Mineral Resources of South Africa, which Gold
One is confident of receiving by the end of the year. Following Competition
Commission approval, the company recently signed an Interim Management and
Funding Agreement with Rand Uranium, facilitating Gold One`s daily management
of both the Cooke Underground Operations and the Randfontein Surface
Operations.
As part of Gold One`s turnaround strategy for Rand Uranium, the Cooke
Underground Operations and the Randfontein Surface Operations have been
separated into two distinct business units with separate operational and
managerial focuses. The clear distinction between underground and surface
operations is a critical step in securing appropriate focus and capacity to
ensure a successful underground turnaround and surface operational growth. In
line with the focuses on the two separate business units Syd Caddy, an
existing executive of Gold One and Senior Vice President: Operations, has
been appointed to manage the Cooke Underground Operations while Dick
Plaistowe, who has recently joined the Gold One Executive as Senior Vice
President: Surface Operations, will assume responsibility for the Randfontein
Surface Operations.
Dick will also be responsible for the Cooke Uranium Project together with
Roland Freeman, VP: Engineering, who recently joined Gold One to manage the
Uranium Project. Gold One has undertaken an extensive review of the existing
feasibility study for the uranium plant that was previously undertaken by
Rand Uranium, with a view to commencing uranium production by 2015. External
consultants have been appointed to assist with the feasibility review and
discussions have also been initiated with international banks to evaluate
third party vendor financing for the plant`s construction, which is planned
to commence in early 2013.
Gold One President and CEO Neal Froneman comments: "With the excellent
production output from Modder East and continued increasing operational
flexibility, the company has continued to build on the solid foundation that
it has established throughout this year. For the December 2011 quarter,
33,000 ounces of gold production is being targeted, which will result in the
achievement of our annual gold production target of 120,000 ounces. I am also
delighted that Gold One is now able to play an increasingly active role in
the daily management of the Cooke Operations. We have ensured that the
company has adequate high quality expertise to progress the Uranium Project
without detracting from the focus required at the existing underground Cooke
Operations".
*Total cost refers to the sum of the cash cost, depreciation and royalties.
Capital expenditure, finance costs and corporate costs are excluded from
total cost.
Issued by Gold One International Limited
www.gold1.co.za
Neal Froneman
President and CEO
+27 11 726 1047 (office)
+27 83 628 0226 (mobile)
neal.froneman@gold1.co.za
Ilja Graulich
Investor Relations
+27 11 726 1047 (office)
+27 83 604 0820 (mobile)
ilja.graulich@gold1.co.za
Carol Smith
Investor Relations
+27 11 726 1047 (office)
+27 82 338 2228 (mobile)
carol.smith@gold1.co.za
Derek Besier
Farrington National Sydney
+61 2 9332 4448 (office)
+61 421 768 224 (mobile)
derek.besier@farrington.com.au
About Gold One
Gold One is a gold producer listed on the financial markets operated by the
ASX Limited and the JSE Limited, issuer code GDO. Its flagship operation is
the newly built shallow Modder East mine on the East Rand, some 30 kilometres
from Johannesburg.
Modder East is the first new mine to be built in the region in 28 years and
distinguishes itself from most of the other gold mines in South Africa owing
to its shallow nature (300 metres to 500 metres below surface). To date
Modder East has provided direct employment opportunities for over 1,500
people. Gold One also owns the nearby existing Sub Nigel mine, which was
until recently used primarily as a training centre in the build-up of Modder
East to full production. Gold One`s other projects and targets include
Ventersburg in the Free State Goldfields, the Tulo concession in Mozambique
and the Etendeka greenfield project in Namibia.
This news release does not constitute investment advice. Neither this news
release nor the information contained in it constitutes an offer, invitation,
solicitation or recommendation in relation to the purchase or sale of
securities in any jurisdiction.
Forward-Looking Statement
This release includes certain forward-looking statements and forward-looking
information. All statements other than statements of historical fact included
in this release including, without limitation, statements regarding future
plans and objectives of Gold One International Limited are forward-looking
statements (or forward-looking information) that involve various risks,
assumptions and uncertainties. There can be no assurance that such statements
will prove to be accurate and actual values, results and future events could
differ materially from those anticipated in such statements. Important
factors could cause actual results to differ materially from Gold One`s
expectations. Such factors include, among others: the actual results of
exploration activities; actual results of reclamation activities; the
estimation or realisation of mineral reserves and resources; the timing and
amount of estimated future production; costs of production; capital
expenditures; costs and timing of the development of Modder East and new
deposits; availability of capital required to place Gold One`s properties
into production; the ability to obtain or maintain a listing in South Africa,
Australia, Europe or North America; conclusions of economic evaluations;
changes in project parameters as plans continue to be refined; future prices
of gold and other commodities; possible variations in ore grade or recovery
rates; failure of plant, equipment or processes to operate as anticipated;
accidents; labour disputes and other risks of the mining industry; delays in
obtaining governmental approvals, permits or financing or in the completion
of development or construction activities, economic and financial market
conditions; political risks; Gold One`s hedging practices; currency
fluctuations; title disputes or claims limitations on insurance coverage.
Although Gold One has attempted to identify important factors that could
cause actual results to differ materially, there may be other factors that
cause results not to be as anticipated, estimated or intended.
Any forward-looking statements in this release speak only at the time of
issue. There can be no assurance that such statements will prove to be
accurate as actual values, results and future events could differ materially
from those anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements. Gold One does not
undertake to update any forward-looking statements that are included herein,
or revise any changes in events, conditions or circumstances on which any
such statement is based, except in accordance with applicable securities laws
and stock exchange listing requirements.
Competent Person
The information in this release that relates to exploration results, mineral
resources or ore reserves is based on information compiled by Dr Richard
Stewart, who has a doctorate in geology and who is a professional natural
scientist registered with the South African Council for Natural Scientific
Professions (SACNASP), membership number 400051/04. Dr Stewart is also a
member of the Geological Society of South Africa (GSSA) and Senior Vice
President: Business Development for Gold One, with which he is a full-time
employee. He has 10 years` experience which is relevant to the style of
mineralisation and type of deposit under consideration, and to the activity
which he is undertaking, to qualify as a Competent Person for the purposes of
both the 2004 Edition of the Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves (JORC Code) and the 2007 Edition
of the South African Code for Reporting of Exploration Results, Mineral
Resources and Mineral Reserves (SAMREC Code).
Dr Stewart consents to the inclusion in this release of the matters based on
information compiled by Gold One employees and it`s consultants in the form
and context in which they appear. Further information on Gold One`s resource
statement is available in the pre-listing statement of Gold One International
Limited issued on 19 December 2008 and in the resource statements released by
Gold One on the ASX Announcements Platform and the Stock Exchange News
Service (SENS) on 11 October 2010 (Megamine), 7 December 2010 (Ventersburg),
and 15 December 2010 (Modder East) and in the 2010 Annual Report released on
28 February 2011.
SAMREC and JORC Terminology
In addition, this release uses the terms `indicated resources` and `inferred
resources` as defined in accordance with the SAMREC Code, prepared by the
South African Mineral Resource Committee (SAMREC), under the auspices of the
South African Institute of Mining and Metallurgy (SAIMM), effective March
2000 or as amended from time to time and where indicated in accordance with
the Canadian National Instrument 43-101 - Standards for Disclosure for
Mineral Projects. The terms `indicated resources` and `inferred resources`
are also defined in the 2004 Edition of the JORC Code, prepared by the Joint
Ore Reserves Committee (JORC) of the Australasian Institute of Mining and
Metallurgy (AusIMM), the Australian Institute of Geoscientists (AIG) and the
Minerals Council of Australia (MCA). (The use of these terms in this release
is consistent with the definitions of both the SAMREC Code and the JORC
Code.)
A mineral reserve (or `ore reserve` in the JORC Code) is the economically
mineable part of a measured or indicated resource demonstrated by at least a
preliminary feasibility study. This study must include adequate information
on mining, processing, metallurgical, economic and other relevant factors
that demonstrate at the time of reporting that economic extraction can be
justified. A mineral reserve includes diluting materials and allows for
losses that may occur when the material is mined. A proven mineral reserve
(or `proved ore reserve` in the JORC Code) is the economically mineable part
of a measured resource for which quantity, grade or quality, densities, shape
and physical characteristics are so well established that they can be
estimated with confidence sufficient to allow the appropriate application of
technical and economic parameters to support production planning and
evaluation of the economic viability of the deposit. A probable mineral
reserve (or `probable ore reserve` in the JORC Code) is the economically
mineable part of an indicated mineral resource for which quantity, grade or
quality, densities, shape and physical characteristics can be estimated with
a level of confidence sufficient to allow the appropriate application of
technical and economic parameters to support mine planning and evaluation of
the economic viability of the deposit.
A mineral resource is a concentration or occurrence of natural, solid,
inorganic or fossilised organic material in or on the earth`s crust in such
form and quantity and of such a grade or quality that it has reasonable
prospects for economic extraction. The location, quantity, grade, geological
characteristics and continuity of a mineral resource are known, estimated or
interpreted from specific geological evidence and knowledge. A measured
mineral resource is that part of a mineral resource for which quantity, grade
or quality, densities, shape and physical characteristics can be estimated
with a level of confidence sufficient to allow the appropriate application of
technical and economic parameters to support mine planning and evaluation of
the economic viability of the deposit. The estimate is based on detailed and
reliable exploration, sampling and testing information gathered through
appropriate techniques from locations such as outcrops, trenches, pits,
workings and drillholes that are spaced closely enough to confirm both
geological and grade continuity. An indicated mineral resource is that part
of a mineral resource for which quantity, grade or quality, densities, shape
and physical characteristics can be estimated with a level of confidence
sufficient to allow the appropriate application of technical and economic
parameters to support mine planning and evaluation of the economic viability
of the deposit. The estimate is based on detailed and reliable exploration
and testing information gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and drillholes that are
spaced closely enough for geological and grade continuity to be reasonably
assumed. An inferred mineral resource is that part of a mineral resource for
which quantity and grade or quality can be estimated on the basis of
geological evidence and limited sampling and reasonably assumed, but not
verified, geological and grade continuity. The estimate is based on limited
exploration and sampling gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and drillholes. Mineral
resources which are not mineral reserves do not have demonstrated economic
viability. Investors are cautioned not to assume that all or any part of the
mineral deposits in the measured and indicated resource categories will ever
be converted into reserves. In addition, "inferred resources" have a great
amount of uncertainty as to their existence and economic and legal
feasibility. It cannot be assumed that all or any part of an inferred mineral
resource will be ever be upgraded to a higher category. Under South African
and Australian rules, estimates of inferred mineral resources may not form
the basis of feasibility or pre-feasibility studies or economic studies
except under conditions noted in the SAMREC Code and the JORC Code,
respectively.
Investors are cautioned not to assume that all or any part of an inferred
resource exists or is economically or legally mineable. Exploration data is
acquired by Gold One and its consultants under strict quality assurance and
quality control protocols.
No stock exchange, securities commission or other regulatory authority has
approved or disapproved the information contained herein.
Weltevreden Park
17 October 2011
JSE SPONSOR
Macquarie First South Capital (Pty) Limited
Date: 17/10/2011 08:11:15 Supplied by www.sharenet.co.za
Produced by the JSE SENS Department.
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