Vatukoula Gold Mines VGM.LN the London listed gold mining company report that their current development strategy underway at their 100% owned Fiji mine is set to pay long term dividends.
CEO Dave Paxton, recently turned in a great performance on the Proactive Investors one to one interview, live broadcast programme.
Considered one of London's leading experts on the gold sector, the former city analyst described in detail how the current underground programme underway at Vatukoula is working to strike the right balance between development (opening up new gold faces) and stoping (mining the wanted gold bearing faces)
Vatukoula has considerable underground reserves. The mine sits at the centre of a huge caldera gold bearing land package , where VGM has huge long life mining and prospecting potential. Vatukoula rates as one of the worlds best positioned underground gold mines in terms of jurisdiction profile, (low geopolitical risk) cash cost of production profile and where the human capital of experienced hard working Fiji miners ranks amongst the best in the world.
With strong stakeholder support from the Fiji Government in a jurisdiction that is pro mining, VGM has recently seen its stock oversold, where the market has possibly not considered the upside of Vatukoula.
The development programme underway is designed to ensure that the mining operation recovers a greater percentage of the higher grade gold bearing ore body, whilst at the same time ensuring development faces are spread at multiple points within the underground structure, providing a safety mechanism so the underground operation can continue at least in some areas of the mine, should a problem occur in another area.
Subject to no further exogenous shocks, VGM is likely to produce over 60,000 ounces of gold this year. With declining gold production from previously strong producers such as South Africa, the price of gold looks to be holding steady at above 1,600 ounces, based on raw supply and demand fundamentals, given the VIX index "worry factor" now appears to be less reflected in the gold price.
VGM has plenty of capacity available between its cash cost of production which unlike other gold miners includes development as expensed and not capitalised, to remain profitable today but also to be well positioned to turn in improved profits as the impact of the new development strategy starts to kick in.
The Proactive Investors interview with Dave Paxton can be seen at
http://www.proactiveinvestors.co.uk/companies/stocktube/1114/vatukoula-gold-mines-ceo-says-production-targets-remain-on-track-1114.html
Saturday 21 April 2012
Atlantic Coal ATC.LN Production Soars from Huge Demand Increase for Clean Anthracite
Atlantic Coal plc, London's leading listed coal producer, released last week a fantastic production update that got the market very excited about ATC'S Stockton Colliery Anthracite operation, located in Pennsylvania's massive anthracite coal district.
For the three months ended 31 March 2011 Stockton increased production by 12% to 31,729 tons of clean coal during Q1 2012 compared to the equivalent period in 2011 (Q1 2011: 28,376).
During the period Atlantic removed 715,691 bank cubic yards (“BCY”) of overburden (Q1 2011: 658,785). 85,911 tons of run of mine coal was washed (Q1 2011: 62,000).
Demand for Stockton’s high quality anthracite remains strong with production from Pennsylvanian anthracite mines struggling to meet demand.
As a result there has been a substantial increase in the average sale price of Pennsylvanian anthracite with a Q1 2012 average price of $166.30 per ton compared with a
Q1 2011 price of $134.25,
an increase of approximately 24%.
Atlantic Managing Director, Steve Best, said, “I am pleased to report that production at Stockton during the first quarter of 2012 has been steady and that we have experienced an increase in comparison to Q1 2011. As announced earlier today, the railroad diversion is now complete allowing the working of over approximately 1.0 million tons of coal of previously unworkable reserves, which will enable us to increase production at the mine over the coming months.”
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