JOHANNESBURG (miningweekly.com) – Dual-listed Gold One International delivered record gold output of 68 208 oz in the June quarter, narrowly missing its quarterly production guidance of 70 750 oz.

The 10% rise on the 61 853 oz produced during the March quarter – and 8% rise on the previous record – was achieved as the group, over the past two quarters, implemented operational and structural measures to bolster production as the gold price slumped.

Gold One maintained its output guidance of 75 000 oz for the September quarter.

The group attributed the performance from Modder East’s robust operations to high operating margins, with operational profitability expected to improve further as Modder East reached steady-state production levels later this year.

Modder East was expected to produce 32 250 oz in the September quarter – 16% higher than output in the June quarter.

The Cooke underground operation was positively positioned for an improved performance following a significant restructure, which resulted in a 7% increase in output to 31 760 oz in the June quarter.

The Randfontein surface operation reported output of 8 662 oz – a marginal dip from the 8 750 oz produced in the preceding quarter.

Revenue for the period declined from $95.79-million from the sale of 57 860 oz at an average price of $1 625/oz in the March quarter, to $79.8-million from the sale of 65 362 oz at an average price of $1 221/oz during the period under review.

The group commented that revenue declined as Gold One delivered 43 925 oz into the gold hedge book for $1 109/oz and 21 437 oz into the spot market for $1 450/oz.

“… had there been no hedge deliveries during the quarter under review, revenues would have been $91.9-million at the average spot market gold price of $1 406/oz,” the gold miner pointed out.

The average gold price fell from $1 625/oz in the March quarter, to $1 221/oz in the June quarter as gross cash margins narrowed to $150/oz in the quarter under review, compared with the $578/oz reported in the prior period.

Exchange rate movements enabled the group cash operating costs to be maintained at $1 071/oz despite a jump in electricity costs.