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Vatukoula Gold Mines plc is an AIM quoted gold producer which focuses on its 100% owned Vatukoula Gold Mine in the Pacific Island of Fiji - a producing gold mine which contains 680,000 ounces of gold reserves and 4.3 million ounces of gold resources.
UPDATE: Vatukoula output to increase this yearDecember 05 2011, 2:38pm
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Gold miner Vatukoula (LON:VGM) said today it remains on course to produce 65,000 ounces of gold in the current year after production picked up sharply.
The Fiji-focused miner produced 52,157 ounces in the year to August, below expectations at the start of the year after it was forced to change the way it developed the mine.
The group today said the decision to move to high-speed development will result in increased production levels and lower costs in the years to come.
Revenues in the year to August rose by 19% to £47.9 million, but the additional mining costs meant a loss of £3.93 million against a profit of £3.67 million. Cash costs per ounce rose to $1,349, up from US$884.
Vatukoula sold 53,461 ounces of gold during the year, slightly below the previous twelve months, though the average realised price jumped from $1,157 per ounce to $1,439.
Underground ore delivered increased by 40% compared to the previous year, while the underground development for the year was 24,453 up from 8,720 metres achieved in the previous year, which the firm said was the result of the on-going development programme.
Chief executive David Paxton said: “This significant increase in development, coupled with operational efficiencies introduced over the second half, are laying the solid foundations required to achieve our strategic objectives of expansion, sustainable production, operational optimisation, and growth.”
The group added it is still considering an additional listing on a North American market as it believes that this will provide exposure to a market with a broad number of comparable underground gold mining companies.
Broker Shore Capital said the shares are still being affected by disappointment that the company will not hit its earlier prediction of an annualised rate of 100,000 ounces by the second quarter of this year, but operational results should improve from now on.