23 July 2013 – trading update
The gold mining group has issued a trading update covering the first six months of the year which has reassured investors with the share price responding accordingly. Gold production for the period was 294,700oz, a 6% increase on the first half of 2012 with full year production likely to be between 760,000/780,000oz as the second half is always more productive due to the weather conditions. At 1st July, the group had forward sales of gold of 219,400oz at $1664oz for H2 2013 and 145,700oz at $1494 for H1 2014. The fall in the price of gold over recent months has led to cost-cutting at the group which is also seeking to reduce debt. We rated the shares as a speculative buy in issue 81 at 90p and stand by that view. SPECULATIVE BUY.