Moab Khotsong

  • JSE: R157.72 +1.19%
  • NYSE:$8.43 +1.08%
  • GOLD:$2 622/oz -0.05%
  • GOLD:R1 543 594/kg -0.1%
  • USD:ZARR18.31 -0.05%
  • At 17:54pm, 21 Dec 2024

Overview

Moab Khotsong is a deep-level mine near the towns of Orkney and Klerksdorp, some 180km south-west of Johannesburg. The mine, which began producing in 2003, was acquired from AngloGold Ashanti Limited in March 2018.

Mining is based on a scattered mining method, together with an integrated backfill support system that incorporates bracket pillars. The geology at Moab Khotsong is structurally complex, with large fault-loss areas between the three mining areas (top mine (Great Noligwa), middle mine and lower mine (growth project and Zaaiplaats project in execution phase)). The mine exploits the Vaal Reef as its primary orebody. The economic reef horizons are mined between 1 791m and 3 052m below surface. Ore mined is processed at the Great Noligwa gold plant. The plant uses the reverse gold leach method, with gold and uranium recoveries achieved by gold cyanide and acid uranium leaching.

As at 30 June 2023

  • Gold Resource: 9.5
  • Gold Reserve: 3.7
  • LoM: 21 years

Operating statistics FY23

Production

6 668kg / 214 381oz

Grade

7.25 g/t

Workforce

6 713

All-in sustaining cost

US$1 370/oz

Operating performance FY23

The operation recorded a steady performance for FY23, affected by seismicity and other operational challenges. Gold production rose marginally by 2% to 6 668kg (214 381oz). The recovered grade increased by 7% to 7.25g/t but was partially offset by lower tonnes milled.

The mine is the group’s second-largest gold operation, contributing 15% of total production. Revenue increased 22% to R7 036 million (FY22: R5 779 million), mainly due to a higher gold price received. Cash operating costs were 10% higher at R4 561 million (FY22: R4 134 million), mainly due to annual wage and electricity tariff increases as well as inflationary increases on consumables and other costs. MPRDA royalties increased by 56% to R142 million in FY23 (FY22: R91 million). Capital expenditure rose 31% to R1 167 million (FY22: R894 million), mainly as a result of capital expenditure for the Zaaiplaats project as well as the Great Noligwa pillar extraction accounting for 53% of the total spent. A total of R365 million was spent in respect of ongoing development.

Moab Khotsong was the second largest contributor to operating free cash flow at R1 309 million in FY23, a significant increase over the R752 million recorded in FY22.

OUTLOOK FOR FY24

With 21 years’ (including Zaaiplaats) life-of-mine left, the focus in FY24 will be to decline sink operations at Zaaiplats during the second half of FY24. Planned project capital expenditure for FY24 related to the Great Noligwa pillars and Zaaiplaats project is forecast at R732 million. Production guidance for FY24 is 187 600oz to 195 600oz.

ESG statistics

Lost-time injury frequency rate

6.03 per million hours worked (FY22: 5.65)

WATER INTENSITY (/TONNE TREATED)

6.45Ml (FY22: 6.69Ml)

Energy intensity (/tonne treated)

0.81GWh (FY22: 0.78GWh)

GHG intensity
(/tonne treated)

0.84t CO2e (FY22: 0.85t CO2e)

Local economic development

R49m (FY22: R23m)

SLP

Moab Khotsong SLP 2018 -2022 (English)
Moab Khotsong SLP 2018 – 2022 (SeTswana)

Moab Khotsong

Tel: 018 478 1682

2R72+2V Viljoenskroon, 2622,
North West, South Africa