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VILLAGE MAIN REEF LIMITED (Incorporated in the Republic of South Africa)
(formerly known as Village Main Reef Gold Mining Company (1934) Limited) (Registration number 1934/0057034/06) Share Code: VIL ISIN: ZAE000154761 ("Village")
VILLAGE PRODUCTION PERFORMANCE FOR JUNE 2012 QUARTER
Village today announces that a total of 46 424oz of gold and 1 436 tons of antimony were produced during the June 2012 quarter. Gold production for the quarter, on a like for like basis, excluding gold produced by Blyvooruitzicht Mine (Blyvoor) was 0.73% (or 289oz) lower than the gold production achieved during the March 2012 quarter. Blyvoor, which was accounted for from the 1st June 2012, contributed 6 944 oz of gold for the month of June 2012. Antimony production was 58% (or 527 tons) higher than the production achieved during the March 2012 quarter.
Production at all the operations were negatively impacted by a number of safety related stoppages during the quarter. In total safety related stoppages resulted in a loss of 53 production days, which impacted gold production by a total loss of 107 kg and antimony production by 86 tons. The loss of production and the impact of winter electricity tariffs have had a negative impact on the notional cash cost per kg although absolute costs at the operations were well controlled. The higher winter electricity tariffs added some R30 million to the costs of all the operations in the group during June 2012, with approximately R11 million of this being attributed to Blyvoor.
Gold production at Tau Lekoa was 27 585oz which was similar to gold production during the March 2012 quarter. The business optimisation project at Tau Lekoa continued to yield positive results.
Gold production at Buffelsfontein was 9 227oz, which was 5% (or 514oz) lower than the March 2012 quarter. Although Buffelsfontein managed to improve gold grades mined, this did not translate to higher gold production. Production volumes at Buffelsfontein were negatively impacted due to safety stoppages which resulted from a fire at No. 7 shaft as well as stoppages related to seismic activity at the mine.
Cons Murch mine delivered a significant improvement in production with a 22% increase in gold to 2668 oz and a 58% improvement in antimony to 1436 tons. The increase in production was due to better grade control and the successful commissioning of additional trackless machinery. Cons Murch continued its capital expenditure program, focused on the improvement of plant recoveries and the acquisition of mechanised equipment, with a total capital spent of R17.1 million during the quarter.
The table below provides more information of the production achieved at each of the Village mines during the June 2012 quarter versus the March 2012 quarter.
Jun-12 Mar-12 quarter quarter % change
Tau Lekoa gold oz 27 585 27 842 down 1%
Buffelsfontein gold oz 9 227 9 741 down 5%
Blyvoor - gold oz (Jun 12) 6 944 - up 100%
Cons Murch gold oz 2 668 2 186 up 22%
Cons Murch antimony tons 1 436 909 up 58%
Total Village Gold oz 46 424 39 769 up 17%
Total Antimony tons 1 436 909 up 58%
Unaudited Notional Cash Cost/Kg
Jun-12 Mar-12 quarter quarter % change
Tau Lekoa 275 744 264 395 up 4%
Buffelsfontein 638 241 519 422 up 23%
Blyvoor (June 12) 449 494 - up 100%
Cons Murch (cost per ton) 1 470 1 255 up 17%
Village joint CEO Marius Saaiman commented: We are very pleased that Part A of our acquisition of Blyvoor concluded successfully. We achieved stable production at all of our gold operations and the benefit of the optimisation program at Tau Lekoa is being realised as costs are reducing and volumes increasing. We were especially pleased with the performance at Cons Murch where the drive to mechanize has positively impacted production volumes.
Operational and financial details for the June 2012 quarter will be provided in the June 2012 Quarterly Report, which is expected to be released on SENS towards the end of August 2012. 12 July 2012
Sponsor Java Capital Media and Investor Relations Vesta
Date: 12/07/2012 01:30:00 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
