Year in review
2016 was a very strong operational year as we saw the benefit of
the first full year of operations at the Gokona underground at North
Mara. This deposit was previously mined as a high-grade open pit
and commenced underground mining in mid 2015 after we made the
strategic decision to go underground in 2014. The mine delivered ahead
of expectations in 2016, partly due to a 61% increase in mined grade
compared to the resource model. This drove additional ounces and
the overall mine achieved a record production year of 378,443 ounces,
a 32% increase over 2015. at Bulyanhulu, we overcame an extended
process plant shutdown in the third quarter which led to a loss of
approximately one month of milling capacity to deliver 289,432 ounces,
a 6% increase on 2015. This demonstrates the increased operational
resilience as part of our ongoing programme to unlock the geological and
operational potential of the asset. at Buzwagi, production was behind
expectations at 161,830 ounces, 5% below 2015 as a result of lower
mined grades due to a change in pit sequencing in order to enhance
operational efficiencies as part of the extension of mining in 2017.
On the cost side, we demonstrated further improvement in aISC as
the operational efficiencies and increased production rates took effect.
North Mara was again the standout performer, with an a
ISC of uS$733per ounce, which was 20% lower than 2015 driven by the increased
production base. at Bulyanhulu, aISC fell by a further 16% to uS$1,058
per ounce as a result of the restructuring that took place in Q4 2015.
at Buzwagi, we saw aISC above expectation at uS$1,095 per ounce
due to the lower ounce profile, though this was still 8% lower than 2015.
Together, this led to a 14% fall in the headline a
ISC to uS$958 per ounce, over uS$150 per ounce lower than 2015. On an annual basis
this now represents a 43% reduction in a ISC from its peak in 2012.
The strong performance meant that we ended the year with uS$318 million
of cash on our balance sheet, an increase of uS$85 million over the previous
year. This includes the uS$20 million corporate tax cash prepayment,
uS$28 million on debt repayments, uS$20 million on dividends and uS$36
million on share-based payments as a result of the vesting of awards during
the year. as a result, net cash on the balance sheet more doubled from
uS$106 million, ending the year at uS$218 million.
Tuendelelee Kubishana sasa
