Mining Roundup

KAZ Minerals (LON:KAZ) reports ‘sector-leading production growth’ with copper output growing by 66% in the first nine months of this year.

The group said copper cathode equivalent production rose to 44.5 kt (Q2: 31.1 kt). Production growth continues as Bozshakol and Aktogay oxide ramp up and ggroup guidance for 2016 is maintained at 135-145 kt copper cathode equivalent (FY 2015: 81.1 kt)/

Other highlights:

– Bozshakol more than doubled copper output in Q3 to 16.9 kt (Q2: 7.5 kt)

* Ore throughput has steadily increased in Q3

* Concentrator has now operated at ore throughput levels above 60% for three months, declared commercial today

– Aktogay oxide increased copper cathode output by 69% to 6.6 kt in Q3 (Q2: 3.9 kt)

* Oxide production benefited from seasonally warmer conditions in the third quarter

* On track to produce around 15 kt in 2016, in line with guidance

Chief executive Oleg Novachuk said: “KAZ Minerals continues to deliver sector-leading production growth, with our copper output growing by 66% in the first nine months of this year. Given the progress made in ramping up Bozshakol, our first major growth project, we have declared it a commercially producing asset from today. We are also making good progress on the construction of the Aktogay sulphide project, which will deliver the next phase of our production growth in 2017.”

* * *

Goldplat (LON:GDP) reports a good production and financial quarter in the three months to the end of September.

It says overall production of 9,129 ounces of gold and gold equivalents was achieved during the quarter, alongside improvements in operating profitability at the recovery operations and the continued reduction in losses made at Kilimapesa.

Good progress was made on all areas of strategic focus including the sourcing of by-product material for processing at the recovery operations, the identification of new global geographies from which to import material for processing, and the installation of the new plant at Kilimapesa designed to bring the operation to profitability during FY2017.

– Goldplat Recovery Pty Limited (‘GPL’) – South Africa

* During the Quarter GPL produced an operational profit of approximately GBP769k on production of 5,418 ounces of gold and gold equivalents with 4,280 ounces of gold sold for own account and 1,179 ounces transferred to clients.

* With all major capital projects being successfully completed during the previous financial year, capital expenditure during the Quarter was reduced to sustaining CAPEX only. Capital expenditure to maintain operations will continue in Q2 FY2017 with focus on the cyclone sections of the rotary kiln and the upgrade of the high grade mill section.

* The independent investigation concerning the dispute with Rand Refinery regarding the silver sulphide toll recovery project is still in process but has been separated from the day-to-day operations between the two companies.

* Notwithstanding the dispute with Rand Refinery, Goldplat continues to deliver concentrates to Rand Refinery, which has improved its turnaround time significantly. The Company also continues to deliver concentrates to Aurubis in Germany, in line with its strategic decision to mitigate single refiner risk.

– Gold Recovery Ghana (‘GRG’)

* GRG produced an operational profit of approximately £305k from production of 3,088 ounces of gold and gold equivalents, with 1,349 ounces of gold being sold for own account during the Quarter.

* The focus at GRG remains on the sourcing of material from existing and new clients. The Company’s marketing efforts in South America is gaining traction and Goldplat remains confident that it can develop GRG as a hub to service clients internationally. In line with this strategy, GRG remains committed to installing an elution column and associated ancillary equipment, which will improve GRG’s competitive advantage and satisfy the Ghanaian Government’s requirement to produce bullion for export.

* Work to improve incinerator controls and efficiency is underway and modifications include the installation of a drier and scrubber.

* The new shot blast facility is operating well, an initial trial batch of liners from a client in South America has been processed profitably and a second batch has been shipped.

– Kilimapesa Gold (‘KPG’)

*KPG suffered an operating loss of approximately GBP100k on production of 623 ounces of gold and gold equivalents, with 574 ounces of gold sold for own account during the Quarter.

* The erection phase of the new processing plant is progressing well. It is expected that the mine will be able to start the milling section by the end of December 2016 and in so doing increase the output in ounces as planned. The plant expansion is expected to be fully completed in February 2017 when the redesigned crushing section will be commissioned. The mill will be fed by a temporary structure and mechanical loading during the interim period.

* Lower grade ore stockpiled as a result of the current capacity constraint has increased substantially and further material from surface sources have been added. KPG will process this stockpile in conjunction with run of mine ore.

– Anumso Gold Project

* An earn-in option agreement with Ashanti Gold Corp over the Anumso project in Ghana was signed and announced during the Quarter. Ashanti has begun on-site work as part of their initial six-month due diligence of the Anumso earn-in option agreement.

Chief executive Gerard Kisbey-Green said: “This was a good production and financial quarter in what is typically a difficult period for Goldplat. I am very pleased with the progress made on all areas of strategic focus as we continue to improve our operational efficiencies, increase processing capacity and ultimately build our profitability. Particularly satisfying is the progress that is being made in the diversification of sourcing material for processing from South America, as well as the on-going installation of the new plant at Kilimapesa in Kenya. We look forward to continuing to keep shareholders updated with our operational progress.”

* * *

The sector’s biggest risers were Weatherly International (LON:WTI) and Greatland Gold (LON:GGP) – up by more than 9.0% and over 8.5% respectively in late trading. The biggest fallers were Avocet Mining (LON:AVM) and Amur Minerals (LON:AMC) – down by more than 29.1% and over 14.8% respectively.

At 4:18pm:

(LON:AVM) Avocet Mining PLC share price was -20.5p at 49.88p

(LON:BEM) Beowulf Mining PLC share price was 0p at 5.5p

(LON:BKY) Berkeley Energia Ltd share price was -1p at 47p

(LON:CEY) Centamin PLC share price was +0.1p at 157.2p

(LON:CHL) Churchill Mining PLC share price was -0.25p at 28.5p

(LON:CZA) Coal of Africa Ltd share price was -0.23p at 3.24p

(LON:FDI) Firestone Diamonds PLC share price was +0.75p at 57p

(LON:FRES) Fresnillo PLC share price was +5p at 1613p

(LON:GDP) Goldplat PLC share price was +0.13p at 6.13p

(LON:GEMD) Gem Diamonds Ltd share price was +0.75p at 120p

(LON:GGP) Greatland Gold PLC share price was +0.02p at 0.19p

(LON:HOC) Hochschild Mining PLC share price was -4.75p at 265.85p

(LON:KAZ) Kaz Minerals PLC share price was +19.85p at 302.65p

(LON:KMR) Kenmare Resources PLC share price was -5p at 295p

(LON:VED) Vedanta Resources PLC share price was +15.75p at 713.25p

(LON:WTI) Weatherly International PLC share price was +0.03p at 0.3p

Story provided by StockMarketWire.com

Merryn

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