Fourth Quarter Activities Report
Document date:
Tue 21 Jul 1998
Published:
Tue 21 Jul 1998 00:00:00
Document No:
119072
Document part:
F
Market Flag:
Y
Classification:
NORMANDY MINING LIMITED 1998-07-21 ASX-SIGNAL-G
HOMEX - Adelaide
+++++++++++++++++++++++++
GOLD PRODUCTION & COSTS
MINE PRODUCTION & COSTS
EQUITY ORE HEAD GOLD TOTAL CASH TOTAL PROD
INTEREST TREATED GRADE PRODUCED COST COST
(%) (r) (g/t) (oz) ($/oz) ($/oz)
for the 3 months ended 30 June 1998
Western Australia
Kalgoorlie
Operations (50)
Super Pit(3) 2,267,679 2.54 171,156 297 351
Mt Charlotte 439,539 2.67 34,053 446 589
Kaltails (90) 1,885,170 0.61 17,513 280 396
Big Bell
Cons.(4) (100)
Big Bell 444,278 3.26 40,492 379 471
Cue District 228,184 1.67 9,643 664 765
Boddington (44.44) 2,240,958 0.95 61,476 329 405
Northern Territory
Tanami
Operations (78) 976,163 4.19 48,050 273 311
Tennant Creek
Operations (100)
White Devil &
District 51,996 11.15 17,670 236 348
Warrego Tailings 310,384 1.35 7,948 304 335
Gecko (5) 13,404
Queensland
Mt Leyshon (76.36) 1,331,833 1.94 74,932 266 332
Pajingo
Operations (50) 53,939 15.33 25,574 186 250
International
Martha (NZ)(67.06) 230,635 2.99 20,460 290 370
Normandy
LaSource(6.7) (65)
Ariab (Sudan)(40.0) 149,443 10.71 36,538 287 373
Ity(Cote d'Ivoire) 65,371 6.63 12,492 320 366
(51.0)
Lero(Guinea)(42.5)(7) 87,336 3.64 7,106 350 494
Normandy Attributable (9) 371,650 311 384
Normandy Group (9) 440,467 307 381
for the 12 mths ended 30 June 1998
Normandy Attributable(9) 1,433,856 321 393
Normandy Group (9) 1,731,231 313 385
(1) Production Figures are 100 percent for each operation.
(2) Costs are in accordance with gold institute production cost
standard, and are unaudited.
(3) Includes - 7,500 ounces from Gidji roaster clean out (excluded
from head grade and cost calculation).
(4) Production statistics assume 100 percent ownership for entire
quarter. Twelve month statistics adjusted to reinstate minority
30 percent interest effective 1 July 1997.
(5) Production is bullion plus payable ounces in copper concentrate.
Includes 8,321 ounces from milling of 5 Level gold pods.
(6) Ariab, Ity and Lero statistics represent tonnes stacked into
heaps, not tonnes under irrigation.
(7) US$ costs converted at spot exchange rate on 30 June 1998 of
A$1.6412 (March quarter at 31 March A$1.5097). Contributions from
Ariab and Lero not consolidated for statutory accounting purposes.
(8) Sold effective 31 May 1998.
(9) Production statistics for Great Central Mines Limited (Normandy
25.0 percent) are not included in either attributable or Group
production.
PRODUCTION COST STATEMENT
GOLD INSTITUTE STANDARD
periods ended 30 June 1998
(unaudited) 3mths 12mths
($/oz) ($/oz)
Direct mining expenses 318 324
Stripping & mine development adjustments (2) (2)
By-product credits (7) (6)
Other sundry expenditure (income) (2) (1)
Cash operating cost 307 315
Royalties 4 6
Total cash cost 311 321
Depreciation 38 40
Amortisation 24 23
Mine closure 11 9
Total production cost 384 393
GOLD HEDGING POSITIONS
at 30 June '98 Normandy(1) Subsidiaries(2)
('000oz) ($/oz) ('000oz) ($/oz)
Forward Sales
1998-99 1,048 643 394 622
1999-00 908 664 464 593
2000-01 691 743 227 578
2001-03 978 814 483 632
2003-07 853 855 5 661
Total 4,478 740 1,573 610
Managed(3)
6,286 698
(1) Normandy wholly-owned, excluding share of subsidiaries (2)
Subsidiaries, Normandy NFM and Normandy Mt Leyshon, have a total
234,800 ounces of out options at an average strike of $478 per ounce
(3) Normandy wholly-owned and 100 percent of subsidiaries, including
uncommitted put options.
The present value (unaudited) of the hedging book (Normandy and share
of subsidiaries), marked to market, is $609.1 million (US$371.1M), or
$109 per ounce. This value reflects a higher Australian dollar spot
price (by $32/oz) at period end, delivery of all sales for the
quarter into maturing high priced contracts and replacement hedging
for deliveries 1999-2007 at current prices.
MORE TO FOLLOW
1