Wrap Text
Production results for the quarter ended December 2012
VILLAGE MAIN REEF LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1934/005703/06)
Share Code: VIL ISIN: ZAE000154761
(“Village”)
PRODUCTION RESULTS FOR THE QUARTER ENDED DECEMBER 2012:
Village Main Reef (“Village”) today announces production results for the second quarter (ended 31 December
2012) of 49,111oz of gold and 1,255t of antimony. Gold production for the quarter was 20% (or 12,207oz)
lower than the record gold production achieved during the September quarter largely as a result of the
seasonal holidays, industrial action and safety-related stoppages. Antimony production was 15% (or 218t)
lower than the production achieved during the September 2012 quarter.
Village joint CEO Marius Saaiman commented: “The South African mining industry has concluded one of the
most difficult quarters in South African mining history, with labour unrest impacting across the sector. The
Village operations did not escape the impact of these events, with production volumes at most of our
operations lower than anticipated. We are optimistic that the actions taken by management, including our
restructuring plans at Blyvoor and renewed safety improvement strategies, should have a positive impact on
our performance during the March 2012 quarter".
Gold production at Tau Lekoa Gold Mine (“Tau”) for the December quarter was 27,360oz, a decline of 14% (or
4,364oz) compared to the September quarter. Lower production was largely due to safety related stoppages,
the slow start up post the fatal accident that occurred during the quarter and the impact of lower production
volumes on the overall mining mix that resulted in lower recovered grade. Production volumes and mix have
stabilised and a review of safety systems and improvement strategies are in the initial stages of
implementation and should have a positive impact on the March quarter.
Gold production at Buffelsfontein Gold Mine (“Buffels”) was 10,359oz for the December quarter, an
improvement of 10% (or 934oz) over the September quarter. This was largely as a result of an improvement in
production volumes, notwithstanding the impact of a safety related stoppage at the high-grade number 2 shaft
and the fatal accident that occurred towards the end of the quarter. We are working with the Department of
Mineral Resources (“DMR”) inspectorate and independent experts to deliver safety system improvements and
strategies for accident prevention.
Cons Murch Mine (“Cons”) delivered 1,255t of antimony and 2,037oz of gold for the December quarter, a
decline of 15% (or 218t) in antimony and a decline of 27% (or 737oz) in gold compared to the September 2012
quarter. Production performance was affected by lower volumes resulting from a prolonged stoppage for
infrastructure repairs at the high-volume Monarch shaft. Normal production has since been restored.
Gold production at Blyvooruitzicht Gold Mine (“Blyvoor”) was 9,355oz, 46% (or 8,038oz) lower than the
September quarter. Shareholders were advised during the September quarter that the unprotected mine strike
action during October 2012 and early in December 2012, coupled with a seismic event that affected 40% of
underground production areas, would materially affect Blyvoor’s production during the December quarter.
Production at Blyvoor was further affected by a stoppage of certain working areas following a fall of ground
event that resulted in a fatality at the beginning of December 2012. The affected working areas are being re-
established and a revised fall of ground management strategy is being implemented.
The table below provides more information on the production achieved at each of the Village mines during the
December 2012 quarter versus the September 2012 quarter.
Production achieved at Village mines during December 2012 quarter versus September 2012 quarter
Dec-12 Sep-12 % change
quarter quarter
Tau Lekoa – gold oz 27,360 31,725 (14%)
Buffelsfontein – gold oz 10,359 9,425 10%
Blyvoor – gold oz 9,355 17,393 (46%)
Cons Murch – gold oz 2,037 2 775 (27%)
Cons Murch – antimony tons 1,255 1,473 (15%)
Total Village Gold oz 49,111 61,318 (20%)
Unaudited notional cash cost/Kg Dec-12 Sep-12 % change
quarter quarter
Tau Lekoa 317,140 275,500 (15%)
Buffelsfontein 530,552 616,400 12%
Blyvoor 749,635 533,800 (40%)
Cons Murch (cost per ton) 1,594 1,231 (29%)
Operational and financial details for the December 2012 quarter and the six months ended 30 December 2012
will be provided in the half year report, which is expected to be released on SENS towards the end of February
2013.
Contacts
Village Joint CEO
Marius Saaiman
Email: msaaiman@villagemainreef.co.za
Mobile: 082 458 3420
Investor and media relations
Village Main Reef
Cheryl Walton
Email: cwalton@villagemainreef.co.za
Tel: 011 274 4610
15 January 2013
Sponsor
Java Capital
Date: 15/01/2013 08:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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