Monday, 4th April 2005 (2422 views)

Aflease is to begin producing gold again, after operational restructuring has helped to turn around losses at the company.

The South African mining firm stopped producing gold at its operations last year due to losses created by the strong rand, but the first of its three operations will now start producing again in the second quarter of this year, according to Mining Weekly.

"It is pleasing to note that with the operational restructuring, and despite the continued strengthening of the rand, the large operating losses of 2003 have been reversed. The financial statements for the year 2004 reflect the initial success of the 'strong-rand strategy' that was developed and implemented towards the end of 2003," the company commented.

As the Bonanza South mine begins to generate a revenue stream, the company will need to spend out significant amounts for feasibility and exploration drilling at its Modder East and Dominion projects.

However, the firm is now positive it has "sufficient funding" to continue current programmes which will bring future projects into production.

 

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