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Oliver Kazunga Senior Business Reporter
ZIMBABWE’S largest gold producer, Metallon Gold Corporation targets to increase output to 150,000 ounces this year from 99,000oz in 2014 driven by a number of expansion projects. The private gold mining and exploration group owns five underground mines in Zimbabwe with exploration assets in Tanzania and the Democratic Republic of Congo.

The mining concern’s operations in Zimbabwe are How Mine, Mazowe, Arcturus, Shamva and Redwing.

“Gold production of 150,000oz is expected in 2015, which is approximately 30 percent of Zimbabwe’s total production,” said the company in a statement, adding that four of its mines were presently operating while production at Redwing was expected to begin before the end of the year.

Last year’s output was a 20,6 percent increase on year-on-year 2013 production of 82,000oz.

Sand treatment is one of the projects that the group intends to commence at Mazowe in 2015.

Going forward the gold producer said it aims to increase productivity to 500,000oz by 2019

“Capital expenditure is to be funded from internal cash flows and local bank facilities,” it said.

In the first quarter ending March 31, Metallon’s gold output was up by eight percent than the comparable period last year.

The firm posted a $10 million after tax profit last year and envisages that earnings would this year improve by more than double to $22 million driven by improved output among others.

“Revenue of $115m and net profit of $10m was realised in 2014,” it said.

The company said in 2014, it maintained a low cost incurring $946 per ounce while this year it expects all-in-costs of $883/oz.

With regards to Indigenisation and Economic Empowerment compliance, the group said it was waiting for the approval of the plan by government before the end of the year.

At its peak position in 2006, Metallon produced 156,000oz becoming the country’s number one producer of the yellow metal.