Target 1

  • JSE: R162.37 -3.24%
  • NYSE:$8.95 -2.08%
  • GOLD:$2 659/oz +0.41%
  • GOLD:R1 526 771/kg +0.36%
  • USD:ZARR17.86 -0.05%
  • At 11:19am, 16 Dec 2024

Overview

Target 1 is an advanced, single-shaft, deep-level mine in the Free State, some 270km south-west of Johannesburg.

Mining operations use both mechanised and conventional stoping techniques. The gold mineralisation currently exploited is contained in a succession of Elsburg and Dreyerskuil quartz pebble conglomerate reefs. These reefs are mined to a depth of around 2 300m below surface. Ore mined is milled and processed at the Target plant, with gold recovered by means of gold cyanide leaching.

As at 30 June 2023

  • Gold Resource: 3.5Moz
  • Gold Reserve: 0.5Moz
  • LoM: 6 years

Operating statistics FY23

Production

1 275kg / 40 992oz

Grade

3.49g/t

Workforce

2 001

All-in sustaining cost

US$3 332/oz

Operating performance FY23

Target 1 had a challenging year affected by pillar failures in the high grade massive stopes, trackless vehicle availability as well as several power failures ultimately resulting in the flooding of certain areas of the operation. Ventilation constraints further compounded the challenges for the operation.

As a result, gold production was down 29% to 1 275kg (40 992oz) from 1 800kg (57 872oz) in FY22. Challenging mining conditions reflected in the ore milled at 365 000 tonnes, 20% lower than the previous year (FY22: 455 000 tonnes) and a lower recovered grade of 3.49g/t (FY22: 3.96g/t).

The substantial decrease in production is reflected in the revenue at R1 308 million, 21% lower than the R1 648 million recorded in FY22. This despite a 15% rise in the gold price to R1 041 564/kg (FY22: R904 992/kg). Cash operating costs rose 13% to R2 033 million (FY22: R1 794 million), mainly due to annual wage and electricity tariff increases as well as an increase in the cost of consumables. Capital expenditure increased 11% to R428 million (FY22: R384 million), mainly for ongoing development and major project capital.

OUTLOOK FOR FY24

Deliver the optimisation project timeously to ensure the planned production build-up for the second half of the financial year is achieved. Deliver improved ounces in line with FY24 guidance. Production guidance for FY24 is 65 200oz to 68 900oz.

ESG statistics

Lost-time injury frequency rate

9.54 per million hours worked (FY22: 10.08)

Water intensity (/tonne treated)

2.20Ml (FY22: 1.92Ml)

Energy intensity (/tonne treated)

0.58GWh (FY22: 0.45GWh)

GHG intensity
(/tonne treated)

0.61t CO2e (FY22: 0.50t CO2e)

Local economic development

R8m (FY22: R5m)

SLP

Target 1 2018 – 2022 (English)
Target 1 2018 – 2022 (SeSotho)

Target 1

Tel: 057 452 4429

20 Buffalo Road, Allanridge,
Free State, South Africa