By BIBIAN BARRENG
FREQUENT power outages at the Tolukuma Gold Mine have slashed gold production by 5%, down to only 10,033 ounces during the third quarter, from the 10,561oz produced in the previous quarter.
Gold produced during the period was valued at US$944/oz.
Emperor Mines reported in its third quarterly that production was impacted by power outages, which in turn affected the mine’s ability to maintain operations in the mill and underground.
The company had absorbed increased power generation and logistics costs due to low river levels that reduced hydro power generation, prompting the use of diesel generators at maximum capacity.
During the quarter, Emperor Mines also announced its intention to divest the TGM since it did not fit with the miner’s newly-developed plan.
The company noted that it had initiated a divestment process for the mine and a portfolio of associated exploration tenements.
Brad Gordon, Emperor’s chief executive officer, said he believed the sale of Tolukuma would free up management and other resources to concentrate on carrying out growth strategy outlined last July.
Emperor Mines further said subsequent to the end of the quarter, the company’s major shareholder, DRD Gold Ltd, had successfully completed the sale of its stake in Emperor Mines to a range of domestic and international institutions.
This followed the company’s announcement during the quarter that DRD Gold Ltd intended to refocus its attention to opportunities in South Africa and seek to realise its investment in Emperor Mines in an orderly manner.