logo-loader

Cluff Gold production on target after first half

Published: 08:25 15 Aug 2012 BST

no_picture_pai

Cluff Gold (LON:CLF) has exited the first half on target to meet its 60-70,000 ounce gold production guidance.

This morning the AIM quoted West African gold firm revealed a 21 per cent increase in gold production at the Kalsaka mine, in Burkina Faso, to 15,191 ounces. As a result Cluff’s earnings (EBITDA) were up 17 per cent to US$6.2 million.

Cash costs per ounce reduced 5 per cent from the prior quarter to US$961, though the average for the first half overall stands at US$986 up from US$842 in the same period of last year. Average gold sales prices increased to US$1,650 compared to US$1,442 in the same period of last year.

Cluff also says the recent completion of the nearby Sega gold project should expand the life of the Kalsaka mine.

Meanwhile it continues to make progress with the Baomahun project, in Sierra Leone, where a new resource update is expected in October. And ongoing exploration at the Yaoure project, in Côte d’Ivoire, is also expected to produce a resource estimate before year’s end.

"In the first six months of the year Cluff Gold has delivered solid results from Kalsaka and we expect head grade and production to continue to strengthen quarter-on-quarter for the remainder of 2012,” said chief executive Peter Spivey.

“Kalsaka continues to generate robust cash flow and through the integration of the Sega project, which is expected to begin production in H1 2013, we anticipate that Cluff Gold will be able to maintain production in Burkina Faso until Baomahun comes on-stream. 

“In the second six months of the year we expect to reach significant milestones at Kalsaka, Baomahun and Yaoure as we take further steps along the path to becoming a mid-tier producer."

At the end of the six month period, June 30, Cluff had cash and liquid assets totalling US$28.8 million.

 

HANetf founder and co-CEO discusses shift to active management in ETF market

HANetf founder and co-CEO Hector McNeil tells Proactive's Stephen Gunnion about shifting trends in the exchange-traded fund (ETF) market in the United States, indicating a big move towards active management within ETFs. Despite the European market lagging behind the US by three to five years,...

14 hours, 10 minutes ago