Revenue fell 27.8 per cent to 11.3m pounds in the three months to November 30th compared to the same period in the previous year at Vatukoula Gold Mines, the AIM-listed company's quarterly results have revealed.
The group, which owns the Vatakoula Gold mine in Fiji, posted its quarterly results for the three months ending November 30 on Friday morning.
Gold production fell by 32.74% to 10,549 ounces in the quarter compared to the corresponding period in 2011 and by 10.32% compared to the previous quarter ending August 2012.
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The volume of gold shipped also declined by 28.15% to 10,482 ounces compared to the volume shipped in the same period in 2011. Compared to the previous quarter, the shipped volume represented a 9.61% decline. Earnings Before Interest, Tax, Depreciation and Amortisation fell by 83.78% to £0.38m.
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Chief Executive points to new mining discoveries and Chinese investment
Commenting on the results, David Paxton, Chief Executive Officer of Vatukoula Gold mines, said: "The increase in capital development has impacted on our short-term gold production, but in the longer-term will enable Vatukoula to realise its production targets. These production results should be viewed in the context of our efforts to transform the mine's underground mining prospects and realise our overall operational objective of long-term economic mining."
He added that a new mining area had been exposed and the group had also received investment from Chinese investors.
"Although gold produced is less than that produced for the same period last year, the development program has exposed new mining areas, including the high-grade Cayzer-Prince ore body below 18 level in the Philip Shaft area. These new higher grade areas will provide the bulk of the gold to be mined at Vatukoula for the foreseeable future," he said.
"I am also pleased to report on the development of our strategic relationship with Zhongrun, our Chinese investors. Despite difficult market conditions during the quarter, Zhongrun invested a further £6.6 million in the company highlighting their positive view for the future at Vatukoula"
Vatakoula Gold Mine's share price was unchanged at 25.75p at 08:29 on Friday morning.
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