adds broker comment at end
Hambledon Mining (LON:HMB) said quarterly production from its Sekisovskoye mine in Kazakhstan was broadly in line with expectations as it unveiled a new member of the board.
She is Sabine Anderson, who joins as a non-executive director and as an appointee of the European Bank for Reconstruction and Development, which is helping finance the company’s growth plans.
Chairman George Eccles said: “We are very pleased that Sabine will be joining our board. She brings a wealth of experience especially in the gold miningsector, and will ensure that EBRD’s high standards are adhered to at every level of the company.”
In the three months to June 30, Hambledon produced 5,840 ounces of gold and 6,856 ounces of silver.
Although in line with management’s expectations, output was held back as “remedial work” was carried out on one of the project’s tailings dams.
The group also revealed that only “modest amounts” of ore were taken from the underground portion of Sekisovskoye.
“The mining of ores from the underground was temporarily suspended in early June and re-scheduled until mid-July to take into account significant water in-flows that diverted equipment from ore mining to accelerate infrastructuredevelopment,” the company said.
“This allowed continued development of the underground decline which acted as an additional temporary sump and the construction of an additional water chamber.”
House broker Fairfax said the open pit at Sekisovskoye performed better than it expected, but the underground operations experienced teething problems and the significant water in-flow.
The broker has trimmed its price target to 7.1 pence from 7.3 pence due to an expectation now of production of 21,300 ounces of gold this year against a previous forecast of 25,600 ounces.
It may adjust its figures again as the mine starts to develop its next level and to recover production following the water ingress, it added.