West African posts Q2 production dip, reaffirms annual guidance
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The news: Gold miner West African Resources reported a drop in gold production during the June quarter, but said it remains on track to achieve its annual guidance.
The numbers: West African reported quarterly gold production of 45,611 ounces, down from 50,033 ounces in the previous quarter.
Q2 gold sales of 49,840 ounces were up from the 48,338 ounces recorded in Q1, at a higher average price of USD3,282 per ounce.
The context: West African said underground production at its Sanbrado mine in Burkina Faso decreased 13% quarter over quarter, reflecting a 15% reduction in the mined grade. The site's process plant saw a 9% decline in gold production reflecting lower mill head grade and recovery, combined with a lower throughput following a planned mill shutdown during the quarter.
Meanwhile, West African's Kiaka gold mine, also in Burkina Faso, became operational with first gold poured last month. The company said the mine's processing plant performed well during commissioning operations, with stable mill throughput and metallurgical recoveries that "exceeded expectations."
West African said both its Sanbrado and Kiaka gold mines are on track to achieve annual production guidance.
What they said: "This has been a transformative quarter for [West African] with our large, long-life, low cost Kiaka gold project now operational alongside our Sanbrado gold operation, which continued its strong reliable performance in Q2 with gold production of 45,611 ounces," said executive chairman and CEO Richard Hyde.
The source: ASX
