Vatukoula Gold Mines (LON:VGM) announced that David Lenigas has moved from his role as an executive director to non-executive director to "concentrate on other business interests".
“We are very grateful for all the work that (Lenigas) has done with the company as an executive director and are delighted we retain his experience and expertise in a non executive director capacity,” said executive chairman Ian Colin Orr-Ewing.
The company’s flagship asset is the fully owned producing Vatukoula gold mine in Fiji, which contains 680,000 ounces of gold reserves and 4.3 million ounces of gold resources.
The company released its interim results two weeks ago. Gold recoveries for the six months to 28 February were 27,969 ounces, up from 25,096 ounces in the six months ended February 2010. Production for the quarter to the end of February was 11,405 ounces compared to 16,565 ounces for the quarter ended November 2010.
Gold sales for the half reached 29,743 ounces and average gold price per ounce was US$1,326/oz on average, climbing from US$1,314/oz in the November quarter to US$1,359/oz in Q2.
Vatukoula posted a mine profit of £1.8 million for the first half, having lost £1.4 million in Q2 and made a £3.2 million profit in Q1. The Q2 loss was attributed to lower underground grades, which resulted in lower margins per tonne of ore mined and processed.
Vatukoula is looking to achieve an annualised production of 100,000 ounces, which is the goal of the accelerated underground development scheduled until May 2011.
Back in January, broker WH Ireland reiterated its “buy” stance and 224 pence price target for the stock, stating that it had few doubts that the stage one production target of 100,000 ounces and the exploration programme’s goal of significant extension of its reserve life were highly achievable.
Shares in Vatukoula rose 6 percent to 160 pence this morning.