Diversified gold company Besra has announced a strategy of operational efficiencies aimed at cutting its gold production costs by up to $150 per ounce during the next 12 months. The company introduced these measures at the start of the year and expects additional savings to be made by reducing selective exploration, corporate expenses and headcount.
Besra’s chief executive officer John Seton says the cost savings will minimize the loss of revenue as a result of the recent plummet in gold prices. “Our Vietnamese production levels and the completion of the Bau, East Malaysia, feasibility will remain unaffected by the proposed budgetary reductions.”
Besra is focused on four advanced properties in its bid to expand existing production capacity during the next two years including the Bau Goldfield in East Malaysia, Bong Mieu and Phuoc Son in Central Vietnam and Capcapo in the Philippines. It is projecting new production capacity from brownfield Bau Central during late 2015.
Besra’s 85.5%-owned Bau Goldfield in East Malaysia is a world-class project with the potential to dramatically increase the company’s gold production. Geologically similar to the Carlin Trend in Nevada, the property has multiple deposits and an established JORC gold resource.
Besra has an agreement to increase ownership to 93.55% by January 2014. A feasibility study at Jugan Hill deposit is expected to be completed by mid-2013.