(MENAFN- ProactiveInvestors - UK) Vatukoula Gold (LON:VGM) today revealed that April's heavy Fijian rains had an impact on operations in the third quarter.
The rains affected production with 11,390 ounces being produced, compared to over 14,000 ounces in the prior quarter. And just over 12,500 ounces of gold were shipped from the mine.
Around £300,000 was generated in revenue for the three months ended May 31 2012, with average gold sales prices of US$1,622. The company revealed that it has now generated revenues of £4.68 million in the first nine months of the year.
Vatukoula says the impact of the rains led to an increase in cash costs in the third quarter, but the majority of the increases are expected to be temporarily. In the three months to May 31 cash costs per ounce were US$2,034, and in the first nine months it averaged US$1,609.
Operationally, Vatukoula remains focussed on underground development work which is expected to lay the foundations for higher production and improving grades in the future.
"As previously announced heavy rains early in April did have a limited impact on Q3 operations but importantly for our near term and long term production and cost control goals, we were able to increase the rate of combined capital and strike drive development over the period," said David Paxton, chief executive.
"We expect to achieve our previously guided cash costs of approximately US$ 1,400 per ounce for the remainder of the fiscal year.
"The essential capital development program which will provide long term flexibility for underground mining operations is beginning to bear fruit.
"New long-term stoping sections are being prepared for mining in H1 of next year and should help provide long-term flexible underground mining at Vatukoula."
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