ENP Newswire -
Release date- 15082014 -
Cash and cash equivalents of
Production of 21,431 ounces of gold in Q2 2014 (compared to 19,347 ounces in Q2 2013)
Sales of 20,537 ounces of gold at an average price of
All dollar amounts in this press release are expressed in thousands of dollars and, unless otherwise specified, in
Revenues during the three and six-month periods ended
Mine operating expenses, including depletion and depreciation, for the respective three and six-month periods ended
Gross earnings from operations for the respective three and six-month periods ended
Cash costs per ounce on a production basis for the second quarter of 2014 were
Cash costs for Q2 2014 were lower than prior quarters as a result of increased mine and plant productivity; however, the full benefits were partially offset due to lower than planned production as a result of the adverse effect of rainfall on throughput in April. In order to mitigate the adverse effects of rainfall in future periods, the Company has put several measures in place including the installation of a roof over the mill feed stockpile and ore handling area at Twangiza, which are scheduled to be completed prior to the start of the next wet period.
Adjusted cash costs per ounce and all-in sustaining costs per ounce, on a sales basis, are
The Twangiza and Namoya mines continue to have an LTIFR (lost time injury frequency rate) which would equate to a 5-star safety rating per the standards of the
During the three months ended
During Q2 2014, ounces of gold sold increased by 12.5% to 20,537 ounces compared to sales of 18,252 ounces during Q2 of 2013. The average gold price of
CONSTRUCTION & DEVELOPMENT
The plant expansion program at Twangiza was completed during the period, bringing the throughput capacity to near the 1.7 million tonnes per annum ('mtpa') range under the most optimal conditions, with targeted throughput being closer to 1.5 mtpa.
The Namoya plant, which was designed as a hybrid gravity/CIL and heap leach operation commenced commissioning following the completion of construction in
During the second quarter of 2014, the
During the second quarter of 2014, exploration activities continued with low level exploration and ground maintenance activities in the
During the second quarter of 2014, mill throughput increased compared to prior periods, mainly due to the advent of a drier weather period which began in late April coupled with capital improvements carried out to enhance ore delivery to the process plant and to mitigate the impact of the wet periods.
Cash costs per ounce for Q2 2014, on a production basis, were lower than the same prior year period as a result of increased plant productivity, despite the adverse impact of severe rains in April and the processing of lower grades.
A total of 871,849 tonnes of material (Q2 2013 - 1,070,462) were mined during the three month period ended
Processing & Engineering
For the three month period ended
Recoveries during the quarter improved compared to the same prior year period to an average rate of 84.3% (Q2 2013 - 83.4%), primarily as a result of the longer residence time of material with the installation of additional tank capacity as part of the plant upgrade.
Twangiza Plant Optimization and Expansion
Installation of the final part of the Twangiza upgrade program, the second elution circuit, was complete at the end of
Sustaining Capital Activities
During the second quarter of 2014 and subsequently up to the date of this MD&A, the following progress was made in the key areas indicated below with respect to sustaining capital activities at the
Run-of-Mine ('ROM') Pad Roofing
Work on the ROM Pad roofing continued throughout the quarter, with a focus on completion during the third quarter of 2014.
Tailings Management Facility ('TMF')
Following the excessive rains during April, advancement of the TMF was able to return to levels more consistent with management's plan.
Mining continued at the Seketi and Mwendamboko pits during the second quarter of 2014 comprising 739,574 tonnes of material of which 537,683 tonnes were ore.
As previously reported, the production operations at Namoya during April were significantly impacted by reduced road access for bulk deliveries, such as fuel deliveries, due to exceptionally heavy regional rains along the access route between Uvira and Baraka.
Construction of the open pit hybrid CIL/heap leach mine at Namoya was completed during the period and the plant, including the scrubber, secondary and tertiary crushing circuits as well as the CIL circuit, commenced hot commissioning in
The plant was run on a stop and fix basis to resolve various commissioning issues. During the commissioning activities, the Company determined that the Namoya hybrid CIL/heap leach plant was unable to run at design capacity, because the percentage of fine material was found to be higher than the hybrid plant was designed to process.
At the present time, the Company has recognized the need to introduce a traditional agglomeration drum into the circuit. This means not washing all of the ore at the front end of the process as currently designed and installed, but introducing a dry ore feed with appropriate cement additions into an agglomeration drum to bind the fine components of the ore to allow for efficient percolation of the cyanide solution on the heap.
During the second quarter of 2014, the Namoya mine produced 1,458 ounces of gold from a total of 65,858 tonnes of ore, stacked and sprayed on the heap leach pads and processed through the CIL circuit, at an indicated head grade of 2.31 g/t Au.
As of the date of this Press Release, management is continuing to work with internal expertise and external consultants including
Consistent with the Company's focus on cash flow management during the completion of development at Namoya, exploration work during the second quarter of 2014 was comprised of low level exploration and ground maintenance activities in the
Management uses cash cost to monitor financial performance and provide additional information to investors and analysts. Cash cost does not have a standard definition under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
As cash cost does not have a standardized meaning, it may not be comparable to similar measures provided by other companies. However, the methodology used by the Company to determine cash cost per ounce is based on a standard developed by the
The Company defines cash cost, as recommended by the
The Company defines all-in sustaining costs as all direct costs that the Company incurs relating to mine production, transport and refinery costs, general and administrative costs, movement in production inventories and ore stockpiles, less depreciation and depletion plus all sustaining capital costs (excluding exploration). All-in sustaining cost per ounce is determined on a production basis.
The Company defines gold margin as the difference between the cash cost per ounce disclosed and the average price per ounce of gold sold during the reporting period.
Q2 2014 Financial Results Conference Call Information
Toll Free (
Toronto Local & International: +1 647-788-4922
Q2 2014 Financial Results Conference Call REPLAY
Toll Free Replay Call (
Toronto Local & International: +1 416-621-4642
The four projects, each of which has a mining license, are located along the 210 kilometre long Twangiza-Namoya gold belt in the South Kivu and Maniema provinces of the
Cautionary Note Concerning Forward-Looking Statements
This press release contains forward-looking statements. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding estimates and/or assumptions in respect of future gold production, costs, cash flow and gold recoveries, Mineral Resource and Mineral Reserve estimates, potential Mineral Resources and Mineral Reserves and the Company's development and exploration plans and objectives) are forward-looking statements.
These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company.
Factors that could cause actual results or events to differ materially from current expectations include, among other things: uncertainty of estimates of capital and operating costs, production estimates and estimated economic return of the Company's projects; the possibility that actual circumstances will differ from the estimates and assumptions used in the economic studies of the Company's projects; failure to establish estimated mineral resources and mineral reserves (the Company's mineral resource and mineral reserve figures are estimates and no assurance can be given that the intended levels of gold will be produced); fluctuations in gold prices and currency exchange rates; inflation; gold recoveries being less than those indicated by the metallurgical testwork carried out to date (there can be no assurance that gold recoveries in small scale laboratory tests will be duplicated in large tests under on-site conditions or during production); uncertainties relating to the availability and costs of financing needed in the future; changes in equity markets; political developments in the DRC; lack of infrastructure; failure to procure or maintain, or delays in procuring or maintaining, permits and approvals; lack of availability at a reasonable cost or at all, of plants, equipment or labour; inability to attract and retain key management and personnel; changes to regulations affecting the Company's activities; the uncertainties involved in interpreting drilling results and other geological data and the other risks disclosed under the heading 'Risk Factors' and elsewhere in the Company's annual information form dated
Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.
Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
For further information, please visit our website at www.banro.com
Tel: +1 416-366-2221
Toll free: 1-800-714-7938
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