TORONTO (miningweekly.com) – South-East Asia focused Besra Gold has lifted its expected gold output for the 2014 financial year by between 8% and 16%, after pouring 60 187 oz in the 2013 financial year, 187 oz more than expected.

However, the gold miner this week also said it was reassessing its current financial situation to ensure survival as a going concern.

Besra now expected to produce between 65 000 oz and 70 000 oz of gold in the 2014 financial year, after recording a “best-ever” yearly production in 2013, with several daily records set at the company’s Bong Mieu and Phuoc Son gold mines, in Vietnam, during the fourth quarter ended June 30. Total production for the fourth quarter was 18 481 oz.

The company was looking to expand its gold production capacity in Vietnam over the next two years and was expecting new production capacity from Bau Central, in Eastern Malaysia, during late 2015.

Meanwhile, Besra’s board had approved wide-ranging cost-cutting measures and efficiencies, which would reduce central corporate costs by $1.5-million for expected total savings of $5.2-million in the 2014 financial year.

"We are fulfilling an aggressive cost cutting and efficiency programme. While the currently depressed market and decline in gold price have added impetus to this programme, it is also the result of a thorough review of our operations and associated costs by CFO Jane Bell and COO Darin Lee,” CEO John Seton said.

Among the options being mulled by Besra were reducing external consultants in information and communications technology and investor relations, reducing travel costs and components of officer remuneration packages.

At its operations, the significant cost reductions would be achieved by renegotiating a number of critical materials contracts, bringing several other contracts such as mill and mine maintenance in-house, reducing the expatriate headcount and reducing bonuses.

The company’s three long-serving executives had also relinquished their officer positions, which would reduce compensation costs for the company.

Changes in mining methodology and further mill automation would result in reduced consumables and improved recovery rates were expected to contribute to more cost reductions.

Further, operations in Vietnam were increasing mill throughput, which would reduce the fixed cost per tonne.

Besra expected all-in sustainable costs of $1 150/oz to $1 170/oz for the 2014 financial year.

The company added that the board was investigating all opportunities to maximise the value of its assets in Vietnam, which could include the partial divestment by Besra and the listing of the company's local operating subsidiaries on a Vietnamese exchange, as it focused on its Bau mine, which it regarded as a world-class goldfield.

ASX- and TSX-listed Besra early this month said it was contesting two tax claims by the Vietnam General Department of Customs (GDC) against its subsidiaries Phuoc Son Gold Company (PSGC) and Bong Mieu Gold Mining Company (BMGMC).

The company said the GDC had made an assessment that PSGC and BMGMC should pay a total of 250-billion Vietnamese dong (about $12-million) in export duties.