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GWANDA-based mining firm, Blanket Mine, produced a record 16 876 ounces in the fourth quarter ended December 31, 2019, representing a 13 percent increase from 14 952 ounces in the comparative period backed by improved efficiencies.

In a trading update, chief executive officer Steve Curtis said on-mine costs per ounce declined to US$651 in 2019 from US$690 in 2018 owing to lower electricity costs in the first quarter and lower on-mine administration costs due to the devaluation of the local currency.

Despite continued substantial investment in the Central Shaft, the company said cash flows remain strong. Cash flows from operating activities increased 13 percent to US$23.9 million from US$21.1 million in 2018.

“This is largely on increased inventories (part of which relates to increased stocks of diesel to protect against interruptions to the electricity from the grid) and higher prepayments and lower payables, which reflect the reduced availability of supplier credit in Zimbabwe due to the high level of inflation,” said Curtis.

Capital investment for the year remained unchanged at US$20 million. The Central Shaft is poised to be commissioned by year-end after which production can begin to ramp up. Shaft sinking at Central Shaft was completed in July 2019 to the target depth of 1 204 metres. Target output in 2021 is estimated at 75 000oz and 80 000oz in 2022. – New Ziana.