New Dawn Mining soars after quarterly gold production, sales nearly double
New Dawn Mining (TSX:ND) jumped more than 15% after the company reported a 93% increase in quarterly consolidated gold sales and 83% increase in quarterly consolidated gold production.
The Zimbabwe focused gold producer reported total consolidated production of 6,226 ounces (5853 ounces attributable to New Dawn) of gold in the three month period ending March 31, 2011, up from 3,385 in the corresponding quarter in 2010 and 4,808 ounces (4,577 ounces attributable) in the previous quarter.
In 2010, New Dawn took a controlling 88.7% stake in Central African Gold PLC, listed on London's AIM, and subsequently increased its stake to 96.4%, hence the variance in the consolidated and attributable gold production numbers.
Consolidated gold sales for the quarter ended March 31 hit nearly US$7.39 million (US$6.92 million attributable)
at an average sales price of US$1,386 per gold ounce, up sharply from the US$3.8 million reported in the same quarter in 2010.
Consolidated gold sales for the quarter ended March 31, 2011 increased by 14.4% (11.9% attributable), as compared to gold sales for the previous quarter ended December 31, 2010 of US$6.46 million (US$6.12 million attributable).
Crucially, all sale proceeds were received in US dollars.
New Dawn is aiming to bring production at its operations in Zimbabwe up to 50-60,000 ounces of gold with the next two years and 100,000 ounces per annum within five years.
The junior gold producer owns outright the Turk/Angelus Mine, and through its 96.4% stake in CAG, several other mining assets and exploration acreage.
New Dawn also noted that was continuing to discussions with the Government of Zimbabwe about implementing an ‘indigenisation policy' where all businesses in the country are 51% owned by Zimbabweans.
Related news
- Mariana Resources kicks off drilling programme at Las Calandrias gold-silver project
- Orogen Gold begins Phase 1 drilling programme at Deli Jovan
- Magnolia Petroleum on track to hit 100 wells target by end-2012
- Mwana Africa sells 15pct stake in Freda Rebecca gold mine for $405k - UPDATE
- Genel Energy on track as production increases
- Rambler Metals & Mining raises further C$4.13 million from Tinma International
- Wasabi Energy completes purchase of minority stake to own Global Geothermal
