Village Main Reef: Shares up as operations lift profit

Village Main Reef shares rose 12.5 percent to close at 45c yesterday after the gold and antimony producer posted improved operational results for the quarter to June. Total cash operating profit from continuing operations rose to R111.9 million from R49.5m as a result of increased output at Tau Lekoa and progress made with closure and rehabilitation at Buffelsfontein. Gold production at Tau Lekoa increased by 34 percent. Buffelsfontein generated R46m in revenue, from R8m the previous quarter. It realised a cash operating profit of R10m compared with a loss of R14m, on higher revenue from gold sales from the treatment of surface sources and reversal of a provision for pumping costs. A final settlement was reached with Harmony on repayment of pumping costs, and Buffelsfontein received R24m this month. – Dineo Faku