JOHANNESBURG (miningweekly.com) – Gold producer Village Main Reef on Wednesday reported a 34.7% decline in headline earnings a share from continuing operations to 26.12c for the financial year ended June 30.

Earnings a share from continuing operations also declined by 34.9% to 22.4c and operating profit from continuing operations fell 19.6% to R236-million.

Throughout the year, the company had continued to focus on restructuring its operations and strengthening its balance sheet.

CEO Ferdi Dippenaar said that, during the year under review, the company focused on the most pressing issues, namely setting its position straight at the Blyvoor mine, in Carletonvile, starting closure procedures at Buffelsfontein, in the North West and initiating the sales process of the Consolidated Murchison (Cons Murch) antimony mine, in Limpopo.

Included in the financial results were significant costs associated with the restructuring of Buffels and losses from the sale of the Cons Murch operations, Village noted.

“The restructuring and strengthening of our balance sheet culminated in the net asset value per share increasing by 50% from 80c to 120c. This positions Village to transform itself into a resources investment holding company,” Dippenaar said.

He noted that, going forward, it was the company’s intention to further restructure its asset portfolio.

“We have previously referred to the potential disposal of the Lesego platinum project, in Limpopo. Our focus is on extracting optimal value for our shareholders, which could include the acquisition of value-enhancing assets.

“Furthermore, should it result in the disposal of Tau Lekoa or even of Village itself as a going concern, so be it. As we move into the future, Village’s asset portfolio will be different from its present one,” Dippenaar stated.

During the financial year, the company’s Tau Lekoa operation, in the North West, produced 3 436 kg of gold, up 4% on that produced in the prior year.

All-in-sustaining costs per kilogram were well controlled and increased 6% year-on-year, mainly owing to structural changes within the company subsequent to the closure of the Buffels gold mine.

Tau Lekoa’s mineral resources had increased 25% from 3.83-million ounces to 4.78-million ounces. Mineral reserves at the mine, however, decreased by about 2% from 1.2-million ounces to 1.17-million ounces, mainly as a result of depletion.