PRODUCTION at G-Resources’ Martabe Gold-Silver Project in 2014 exceeded expectations with 275,515 ounces of gold produced and more than 2.2 million ounces of silver. Costs for the 12 months were well within guidance at an all-in sustaining cost (AISC) of US$700 per ounce of gold sold compared to US$799 in 2013.

Gold production was slightly lower than the 281,477 ounces produced in 2013 but silver production was well up on 2013’s 1,515,228 ounces.

G-Resources’ chairman Chiu Tao said: “Full credit for this continued strong performance must go to management and staff throughout the company. The Board truly appreciates the effort contributed by our devoted teams in Indonesia to continue to meet and better operating and cost performance targets.

We are also grateful for the strong support we receive from the authorities in Jakarta, in North Sumatra and from the communities nearby the Martabe Mine.

“The gold price environment in 2014 deteriorated in the second half of the year, dropping from an average in the first half of US$1291 per ounce to US$1243. Whilst we are a low cost producer, we are still mindful of market volatilities and must continue to look to further improve our competitive cost position. The company has a number of projects and programs in train aiming to achieve greater production efficiencies and better operating performance – and whilst these have certainly delivered better than planned outcomes in 2014, we will seek to continue this strong performance into 2015.

“The outlook for gold in the short term remains uninspiring and most analysts are forecasting more of the same for 2015 and possibly beyond. The company’s cost of producing an ounce of gold is very competitive compared to our global peers. In a depressed gold price environment, it is important to be a low cost producer and our management team is totally committed in maintaining such a cost competitive position.

“Notwithstanding the current price environment, we continue to have a long-term positive and optimistic outlook for gold – anticipating that demand will continue to grow, especially from China and other developing markets, as standards of living and disposable incomes rise. And, on the supply side, there are just a few new mines and moderate to large discoveries of new deposits are rare; the western Central Banks have ceased supplying gold to the market as their gold holdings have hit historically low levels and developing country Central Banks have gradually increased gold holdings,” Chiu Tao added.

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