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GDO - Gold One International Limited - 2012 March Quarter Group Gold

Release Date: 11/04/2012 07:05
Code(s): GDO
Wrap Text

GDO - Gold One International Limited - 2012 March Quarter Group Gold Production 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") 2012 March Quarter Group Gold Production Gold One advises that a total of 61,625 ounces of gold was produced during the March 2012 quarter. Gold production for the quarter was 85% higher than production achieved during the December 2011 quarter, and 9% or 6,375 ounces less than the quarterly forecasted gold production detailed in the December quarterly announcement released on 31 January 2012. Production for the March quarter now includes the producing Cooke Underground and Randfontein Surface operations acquired from the shareholders of Rand Uranium Proprietary Limited via a transaction that closed on Friday, 6 January 2012. Gold ore volumes at all operations were negatively impacted by a slower than anticipated start up following the Christmas break. Gold production at the Modder East Operations was 8% or 2,872 ounces lower than forecast primarily due to the loss of nine production shifts during the quarter. The lost shifts resulted from the Congress of South African Trade Unions (COSATU) protected strike, the unprotected strike action of 500 employees following disciplinary action taken against six employees, and a further seven lost shifts due to mine-wide safety stoppages imposed by the Department of Mineral Resources. Gold production at the Cooke Underground Operations was 11% or 2,829 ounces lower than forecast largely due to lower than anticipated production volumes and grade. Increasing grade flexibility remains a key focus area of the planned two year turnaround programme and importantly, development rates have been maintained at a high level during the first quarter in order to increase long term flexibility. Gold production at the Randfontein Surface Operations was 8% or 674 ounces lower than forecast largely due to lower volumes delivered to the plant as a result of temporary reclamation issues. The table below provides an operational breakdown of the first quarter`s production. Further details will be provided in the company quarterly report, due for release at the end of April 2012. March 2012 March 2012 Variance Quarter Quarter Actual (oz) Guidance (oz)
Modder East 31,128 34,000 -2,872 -8% Operations Cooke Underground 23,171 26,000 -2,829 -11% Operations Randfontein Surface 7,326 8,000 -674 -8% Operations Total 61,625 68,000 -6,375 -9% Gold One President and CEO Neal Froneman comments: "The loss of nine production shifts at Modder East during this quarter is unfortunate. These disruptions together with the slow start up post the Christmas break has had a significant impact on Modder East`s quarterly production. Without these unforeseen delays I am confident that we would have, at a minimum, achieved our production forecast. At the Cooke Operations the results of the implementation of the two year turnaround strategy are becoming evident and although these do not immediately reflect in the production output, I am confident in meeting the June quarterly guidance for the Cooke operations. The focus at the Cooke section remains on increasing development and reducing external waste." ENDS Issued by Gold One International Limited www.gold1.co.za Johannesburg 11 April 2012 JSE Sponsor Macquarie First South Capital (Pty) Limited Neal Froneman President and CEO +27 11 726 1047 (office) +27 83 628 0226 (mobile) neal.froneman@gold1.co.za Grant Stuart Investor Relations +27 10 591 5219 (office) +27 82 602 5992 (mobile) grant.stuart@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 International Limited ("Gold One") is a dual listed (ASX/JSE: GDO) mid-tier mining group with gold operations and gold and uranium prospects across Southern Africa. Gold One remains focused on developing and mining low technical risk, high margin precious metal resources in diversified jurisdictions. The company`s flagship Modder East gold mine, commissioned in 2009, continues to ramp up production. Gold sold for 2011 amounted to 123,179 ounces, exceeding the company`s stated target of 120,000 ounces and reflecting an increase of 85% compared to 2010. At the beginning of 2012, the group expanded further with the acquisition of the Cooke 1,2 and 3 Underground Operations and the Cooke surface assets (Randfontein Surface Operations) located in the West Rand, 30 kilometers from Johannesburg. The Cooke underground operations continue to deliver in line with expectations and are currently the subject of a turnaround intervention. Through Gold One`s purchase of Rand Uranium (Pty) Limited, the group has also acquired one of the world`s most advanced uranium projects, which envisages recovering uranium, gold and sulphur from the Cooke Tailings Dam and underground ores. The Gold One group is majority-owned by a consortium comprising Baiyin Non- Ferrous Group Co. Limited, the China-Africa Development Fund, and Long March Capital Limited. 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. Date: 11/04/2012 07:05:04 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. 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