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Fourth Quarter Activities Report

Document date:  Mon 19 Jul 1999
Published:  Mon 19 Jul 1999 00:00:00
Document No:  122418
Document part:  D
Market Flag:  Y
Classification: 

NORMANDY MINING LIMITED                       1999-07-19  ASX-SIGNAL-G

HOMEX - Adelaide                                                      

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GROUP MANAGING DIRECTOR'S DISCUSSION - GOLD OPERATIONS   

GOLD

Attributable production was 18 percent above the previous quarter, 
reflecting increased equity in Yandal Operations. The total cash cost 
of $352 per ounce (US$233/oz) was 2.6 percent higher.

The realised gold price, after hedge fees, of $501 0
per ounce exceeded 
the spot price average for the quarter by $82 per ounce.  Including 
the deferred hedge gain, the net gold price achieved was $573 per 
ounce.


ATTRIBUTABLE GOLD PRODUCTION
periods ending 30 June 1999

                         3 mths               12 mths
                        ('000 oz)            ('000 oz)

Kalgoorlie                 76.9                354.9
Yandal                    127.7                280.5
Mt Leyshon                 57.7          0
      240.2
Tanami                     54.0                179.0
Pajingo                    15.4                 52.3
Others                    135.5                563.8

TOTAL                     467.2              1,670.7


ATTRIBUTABLE REALISED PRICE
(including deferred hedge gain)
periods ending 30 June 1999

                         3 mths               12 mths
                         ($/oz)               ($/oz)

Kalgoorlie                 611                  659 
Yan0
dal                     558                  561
Mt Leyshon                 516                  537
Tanami                     542                  599
Pajingo                    614                  658
Others                     603                  592

AVERAGE                    573                  596


 
ATTRIBUTABLE TOTAL CASH COST
periods ending 30 June 1999

                         3 mths               12 mths
                         ($/oz)               ($/oz)

0
Kalgoorlie                 347                  342
Yandal                     289                  303
Mt Leyshon                 256                  257
Tanami                     405                  381
Pajingo                    169                  185
Others                     455                  360

AVERAGE                    352                  329   


AUSTRALIA

At Kalgoorlie Operations, the damaged SAG mill girth gear, which 
limited plant throughput for the 0
past 12 months, was replaced, with 
full production achieved by quarter end.  During the 11-day shutdown 
additional maintenance and inspection programmes identified a cracked 
ball mill girth gear. The ball mill was off line one month for repair.

Super Pit ore grade returned to previous levels. Total material 
movement was affected by wet weather and reduced contractor haul truck
availability. Mt Charlotte costs were higher, due to the need to 
screen certain ore types beca0
use of mill feed problems, higher than 
forecast backfill tonnages, and ground support and maintenance costs. 
Operational readjustments (cessation of mine development) were 
announced after period end.

At Kaltails, gold production increased 43 percent, with increased 
recovery from Croesus dump. Gold production for the quarter and year 
were records. The last tailings (from Trafalgar dump) will be 
processed in mid-August.

At Boddington, production was slightly lower, with0
 a further slight 
fall in head grades reflecting the increasing reliance on lower grade 
stockpiles and ex-pit material.  A similar result is anticipated next 
quarter, after which production is expected to improve as Hedges and 
other ore sources become more significant. The total cash cost for the
quarter includes a non-recurring writedown ($9.5M) of low grade 
stockpiles to realisable value at period end.

At Big Bell Consolidated, production was affected by a major failu0
re 
of the ball mill girth gear. The operation was rationalised in May 
focusing on the underground mine, with all pits suspended. The total 
cash cost for the quarter includes a non-recurring writedowns ($1.7M) 
of open pit stockpiles.

At Yandal Operations, production totalled 236,327 ounces at a total
cash cost of $289 per ounce, and annual production was 783,182 ounces
at $307 per ounce. Bronzewing mining and milling rates improved
significantly, with higher grade Central0
 Zone stope ore accessed as
forecast. The mine produced its one millionth ounce. At Jundee,
Barton Deeps continued to produce ore at higher than budget rates,
with the South Decline reaching 11 Level and North Decline advancing
to 10 Level. At Wiluna treatment plant recoveries were maintained at
84 percent.

At Tanami Operations, an annualised crushing and mill circuit 
throughput of 2.4Mtpa was achieved. Gold production was 13 percent 
higher, due to higher throughput offset0
 by lower average grade and 
lower recovery (plant throughput well in excess of design capacity of 
the leach circuit and stockpiling of low grade mill scats for possible
later retreatment).  Cash operating cost was 7 percent higher 
reflecting the lower head grade and ongoing mill maintenance and 
upgrade activities. An upgrade of the CIP circuit is expected to 
improve reliability and gold recovery at a 2.5Mtpa rate.

At Tennant Creek, production was higher due to increased0
 mill 
throughput (including White Devil ore through the concentrator) partly
offset by lower grades. Campaign processing of stockpiled Orlando ore 
through the concentrator was completed, producing 9,203 payable 
ounces.

At Mt Leyshon, quarterly production was 4 percent higher. Annual 
production was a record 314,575 ounces (up 26 percent), with total 
cash cost 20 percent lower at $257 per ounce. Head grade averaged 
2.0g/t for the year (up 27 percent), reflecting the infl0
uence of ore 
sourced from the higher grade porphyry sill zone.


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