MWANA Africa has recorded an increase in output from its subsidiaries — Freda Rebecca Mine and Trojan Mines for the second quarter ending September 30, 2013.
The group said in a statement, Freda Rebecca Mine output was up 19% to 17 356 ounces of gold while cash cost fell $112 an ounce from $837.
On the other hand, Trojan Mines recoveries went up to 89% from 69,7% during the last quarter.
The cost per tonne for Trojan Mines went down to $9 689 a tonne from $19 251 the prior quarter.
“Sales from Trojan more than doubled to 1 505 tonnes of nickel concentrate,” the company said in a statement.
Mwana’s chief executive Kalaa Mpinga said the company had stabilised and would focus on delivering value on all its projects.
“In conjunction with these operational achievements, the company has successfully planned for and executed a strategy to de-risk its future development following the implementation of a number of cost saving initiatives and two share placings,” Mpinga said.
John Meyer of broker SP Angel said the company needed to keep operations moving in the positive direction before moving to expanding the nickel operations.
“This looks like a good quarter for Mwana with Freda Rebecca increasing production and bringing costs down which should help cash flows.
“Mining of higher grade ore at Trojan is making the nickel operation cash positive despite depressed nickel prices,” Meyer said.
Last month, Bindura Nickel Corporation (BNC) shareholders approved the conversion of some of the mining group’s liabilities into equity in a move that will see the company placing shares translating to a 10% stake with selected creditors.
BNC liabilities stood at $23,6million while long-term loans increased to $10,7 million due to a loan provided by the parent company Mwana Africa.
Since March 2013, Trojan mine, processed 253 329 tonnes of ore and produced 1 810 tonnes of nickel in concentrate.