Posted 9 months ago on July 4, 2013, 5:48 a.m. EST by KeithDavid23
This content is user submitted and not an official statement
Shanghai mining exploration company Allied Minerals today announced that its cash costs over the past 12 months have been reduced by 9.8%
Apr. 12, 2013 - PUDONG, China -- Mr. Kevin Dao, Chief Executive Officer at Allied Minerals, a precious metals exploration company headquartered in Shanghai China, has today revealed that the company's cash costs per ounce of gold extracted have been reduced from $670 /oz to $610 /oz, which is a reduction in overheads for the company of 9.8% at the Allied Minerals primary mine in Henan province in Eastern China.
Mr. Henry Huan an Executive Director at Allied Minerals, who has been with the company since its foundations said “Allied Minerals is undergoing aggressive expansion in 2013 and has invested a great deal in its newer projects at Liaoning and Shandong, so for us to discover that our average cash cost at our main site has gone down is wonderful news”.
According to Mr. Kevin Dao, Chief Executive Officer at Allied Minerals, these savings will be reinvested into its exploratory mandate at Liaoning, where he believes the company will source tremendous quantities of gold ore across the next 5 years. However, until more accurate estimations of the sizes of those probable reserves can be released to the public this cannot be confirmed. Commenting directly on this issue Mr. Dao stated “Allied Minerals has recently given updated estimations of those reserves we believe are accessible at both Shandong and Liaoning, but of course preliminary figures are just that, they are preliminary.”
With the bulk of Allied Minerals gold exports coming from its mine in Henan Province, a cash cost reduction of almost 10% will mean major savings for the company based on a 2012/ 2013 comparison. Mr. Kevin Dao said “This ultimately means we are in a stronger position to generate greater profits, and greater shareholder value than we were at this time last year.”