Canadian gold miner Nevsun Resources Ltd. (NSU) has unveiled second-quarter 2013 production results from its Bisha mine in Eritrea, East Africa. The company produced 34,900 ounces of gold in the quarter, at par with its expectations. Nevsun expects to produce 110,000 ounces of gold from the mine in 2013.
Nevsun mined 425,000 tons of ore during the second quarter. Waste mined was 1,647,000 tons. Moreover, Nevsun milled 455,000 tons of ore at 2.75 g/t (grams per ton) gold. The results include 56,000 tons of the transitional pyrite sand ore processed starting Jun 15, 2013.
During the quarter, an additional 2,700 ounces of gold and 277,000 ounces of silver were produced in concentrate starting June 15. Nevsun also achieved safety milestone at Bisha, clocking 12 million man hours without a lost time injury.
Nevsun is a high grade, low cost gold producer. The company has a 60% interest in the Bisha mine, which ranks as one of the highest grade open pit mines in the world.
Bisha produced 313,000 ounces of gold last year, exceeding the company’s expectations. The mine is shifting to low cost copper/gold production this year. Nevsun invested $64 million in the copper phase expansion during 2012.
According to Nevsun, the copper expansion projected completed as planned and under budget. It expects to produce 30 million to 50 million pounds of copper in concentrate this year.
Nevsun, which currently retains a short-term Zacks Rank #3 (Hold), will report its full financial results in mid-August 2013.
Other companies in the mining industry with favorable Zacks Rank are Impala Platinum Holdings Ltd. (IMPUY), Stillwater Mining Co. (SWC) and Avalon Rare Metals Inc. (AVL). While Impala Platinum and Stillwater Mining hold a Zacks Rank #1 (Strong Buy), Avalon Rare Metals retains a Zacks Rank #2 (Buy).
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