Metallon FY output lower despite record Dec production

REGIONAL gold producer Metallon Corporation has delivered lower gold production in the year to December 31. However, it achieved record output for the month. The company, which has business interests in Zimbabwe, Tanzania and the Democratic Republic of Congo, produced 96,530 oz of gold in 2015 — 2.4 percent less than in 2014. But fourth-quarter gold output increased 1.6 percent to 24,390 oz — with 10,331oz achieved in December alone — compared with the 23,999 oz recorded in the third quarter.

“2015 was an exciting and promising year for Metallon and the management team have been focused on making significant improvements to the business.

“Despite gold production for 2015 being marginally below that of 2014, we believe that advances made during the year will ensure Metallon is well positioned for future production growth,” chief executive officer Ken Mekani said on Friday.

The company had successfully resumed production at the Redwing Mine, with 814 oz produced in 2015.

Ramp-up would continue over the next six months to bring the mine to full production, delivering 1,600 oz a month.

Full-year gold production was hampered by equipment breakdowns at the How, Shamva, Mazowe and Arcturus mines, increased power interruptions resulting in 1,000 hours of lost production and impacting underground production and plant processes and a delay in the commissioning of the Mazowe Sands retreatment project owing to unforeseen equipment delays.

The Mazowe Sands retreatment project was almost complete and commissioning was expected in the second quarter of 2016.

“In 2016, the focus will be on the commissioning of the Mazowe Sands retreatment plant and the Mazowe and Shamva tailings facilities and on exploration,” he said, pointing out that the exploration programme was expected to upgrade more of the company’s 9.6 million resource into the measured and indicated categories. will implement a couple of changes to its board set-up as two non-executive directors step down.

“On March 31, 2016, at the company’s board meeting at Redwing Mine, Mutare, Zimbabwe, Sir Nicholas Bonsor will be retiring from his position as non-executive chairman. Sir Nicholas Bonsor has served the company as non-executive chairman since March 2011.

“Robert Robertson, non-executive director, will also be retiring from his position having served since March 2011. Robert Robertson served as chairman of the audit committee and will be replaced by Tomaz Salomão,” said Metallon.

At the same time, Mzi Khumalo — currently non-executive deputy chairman — will become non-executive chairman of the gold producer.

In his new role Khumalo will “be focused on developing the corporate strategy and advising the company through to its next stage of growth,” said the company.

Commenting on the developments Khumalo said: “On behalf of the Company, I would like to express our gratitude to Sir Nicholas Bonsor and Robert Robertson for their significant contribution over the last five years. In my new role as non-executive chairman, I look forward to working together with the board and management to advance the business.

“This is an exciting time for Metallon as we deliver on our objectives and focus on growth through our expansion projects in Zimbabwe.” — Miningweekly/BH24.

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