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Thursday, 20th September 2018
2:52:12pm

Mining

Articles related to mining

JSC Arkhangelskgeoldobycha has been renamed JSC AGD DIAMONDS as it enters the international market.

The rebranding of the joint-stock company was due to its new marketing policy aimed at its global customers – buyers of rough diamonds.

AGD chief executive Sergey Neruchev said  the acquisition of a 100% stake in Grib Diamonds N. V., which operates in Antwerp and selling rough produced at the Grib diamond field on international markets, was an important milestone for the company.

He said this would open up numerous opportunities for the company.

 "The consolidation of the AGD production business with the Grib DIAMONDS trading company will in the long term create a full-cycle diamond mining company of international standing (comprising geological exploration, production and sales)," said Neruchev.

The Grib diamond field produced 234,000 tonnes of ore last June and raked in more than $46 million from rough sales.

 

Petra Diamonds said its adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) leaped 37 percent to $195.4 million in the fiscal year 2018 from $142 million, a year earlier.
The increase in the group’s full-year adjusted core earnings was attributed to improved production.
Production, excluding KEM JV, which was sold recently, rose 19 percent to 3.8 million carats during the period under review from the previous year’s 3.2 million carats.
However, the company posted a net loss after tax of $203.1 million compared with last year’s net profit after tax of $20.7 million.
The loss was due to an impairment and a higher depreciation charge coupled with higher financing costs.
Meanwhile, Petra chief executive Johan Dippenaar was set to leave the company.
He had been Petra’s chief executive since 2005 and had presided over a rapid growth of the company.
"Johan has led Petra through a long period of significant growth…and establishing the company as a leading independent diamond producer,” said Petra chairperson Adonis Pouroulis.
“As Petra now approaches the final stage of its expansion plans, it is positioned to reap the benefits and, in line with the Nomination Committee's Succession Plan, a successor for the CEO position will be appointed in due course.”
Petra forecast lower than estimated production for 2019 after reporting 2018 output at the bottom end of its forecast range.

South Africa’s Harmony Gold reported a 43 percent fall in annual earnings on Tuesday, hurt by impairments and a loss relating to debt denominated in U.S. dollars, and had a worrying setback in its safety record.

The gold industry in South Africa, which has produced a third of the bullion mined in history and is home to the world’s deepest mines, has been squeezed for years by depressed prices and soaring labour, power and operational costs.

The challenges faced by the industry, which is mostly labour-intensive and non-mechanised, were underscored by a spike in the number of Harmony workers killed during the financial year, to 13 from five in the previous year.

Mine safety is high on the radar screen of investors, the government and unions. 

Headline earnings per share - the main profit measure in South Africa that strips out certain one-off items - came in at 171 cents, in line with what it had previously flagged to the market, from 298 cents a year earlier.

The net loss was almost 4.5 billion rand ($307.5 million)compared with a slim profit last year of 362 million rand.

The company maintains hedges and its rand gold hedges realised gains of almost 1.2 billion rand.

Harmony produced 1.22 million ounces of gold for the year and said its target for the 2019 financial year was 1.45 million ounces. One of its focus areas for the next financial year will be obtaining permits for its Wafi-Golpu project in Papua New Guinea.

-Reuters 

Peregrine Diamonds said its security holders have approved the move by De Beers Canada to acquire the company for C$107 million ($81 million).

The special resolution was passed with approval by 98.35 percent of votes cast by shareholders.

Peregrine said it now expects to apply for a final order of the Supreme Court of British Columbia for approval of the arrangement on September 10, 2018.

“Assuming the satisfaction or waiver of other customary closing conditions, the arrangement is expected to close on or about September 12, 2018,” it said.

Peregrine’s core asset was its 1wholly-owned, 317,213-hectare Chidliak Project, located 120 kilometres from Iqaluit, the capital of Nunavut, where 74 kimberlites had been discovered to date, with eight being potentially economic.

The Chidliak resource was discovered in 2008 and 74 kimberlite pipes had been identified at the project, including the CH-6 and CH-7 pipes, which are the current focus of the mine’s first phase diamond development programme.

The diamond development programme had a total inferred mineral resource in excess of 22 million carats.

Gold Fields’ plan to potentially cut up to almost 1,600 jobs at its struggling South Deep mine in South Africa is a “last-gasp measure”, Chief Executive Nick Holland said on Wednesday.

The company made the announcement on Tuesday, citing mounting losses and a “consistent failure to meet mining and production targets” among the reasons for the move that could see a third of its labour force trimmed.
“The choice is between this and serious risk to the future of South Deep and its many shareholders,” Holland wrote in an article for the Business Day newspaper.

“In the past 12 years, shareholders have received no return at all on their initial investment of 22 billion rand, having seen only an outflow of funds,” Holland said of South Deep.

The mine west of Johannesburg employs around 3,600 full-time workers and 1,900 contractors. In Tuesday’s announcement, the company said 1,100 permanent employees and 460 contractors could “potentially be impacted by the proposed restructuring”. 

South Deep is Gold Fields’ last South African asset and has been beset by problems as the company has tried to mechanise the operation in the face of challenging geology 3 kms (2 miles) below the surface.

-Reuters 

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