(Alliance News) -Â Ariana Resources PLC on Tuesday said production was "pleasing" in the first three months of the year though gross income was down compared to the fourth quarter of 2019.
For the quarter ended March 31, the firm reported gross income of USD8.8 million, with an average realised gold price of USD1,598.90 per ounce. This compares to income of USD12.8 million for the fourth quarter of 2019 with an average realised gold price of USD1,484.07.
The firm said it produced and sold 5,129 ounces of gold in the quarter, with operating cash costs estimated at USD533 per ounce. In the fourth quarter of 2019, it produced 7,318 ounces.
Ariana said 31,421 ounces of silver were not sold during the period due to "adverse price conditions" and have been retained in stock.
The Kiziltepe mine currently remains on track to deliver the 2020 production target of 18,000 ounces of gold. Kiziltepe is part of the Red Rabbit joint venture with Proccea Construction Co, and is 50% owned by Ariana through its shareholding in Zenit Madencilik San ve Tic AS.
"Production during the first quarter of 2020 has provided another pleasing result, which was delivered in part during the current pandemic. Our business, being considered an essential industry, was allowed to continue and operations remain largely unaffected despite the introduction of various risk mitigation procedures at the mine site and an overall reduction of active staff levels," said Managing Director Kerim Sener.
"It is also important to note that the average monthly production from Kiziltepe during Q1 and in to the current quarter is currently running above target," said Sener. "This is in part due to higher material movements and the consequent accessibility of optimal grade ore feed throughout the period. Assuming production is able to continue uninterrupted through the current quarter, we remain on track to deliver on our production target for the year."
Ariana shares were down 1.5% at 4.136 pence in London on Tuesday.
By Lucy Heming;Â lucyheming@alliancenews.com
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Ariana (AAU)