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LONDON (Alliance News) - Serabi Gold PLC Friday said gold production increased during the third quarter and said it expects the ramp up to continue and for costs to be reduced in the fourth quarter.
Gold production for the quarter ended September 30 totalled 5,002 ounces of gold, compared to 3,452 ounces in the second quarter. The increased production during the quarter is due to production commencing at its Palito mine in Brazil at the beginning of July.
Gold sales reached 3,775 ounces of gold during the period at an average price of USD1,261 per ounce. The cash cost averaged USD1,002 per ounce.
Serabi said it expects lower costs and its higher production to continue in the fourth quarter. The company has forecast production ranging between 8,500 to 9,500 ounces in the next quarter, with cash costs to be reduced to between USD875 and USD925 per ounce, it said in its statement.
Serabi's full-year production will be between 19,000 and 20,000 ounces of gold. Production for the first three quarters of the year was 10,544 ounces of gold.
At the end of the quarter, over 11,500 ounces of gold was being held in inventory, including 3,800 ounces of copper-gold concentrate awaiting sale, it said. Over 54,000 tonnes of flotation tailings with grades of 2.2 grammes per tonne were also stockpiled awaiting treatment at the end of September.
As at the end of the third quarter, the company reported a cash balance of USD6.7 million.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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