Kingsgate Consolidated Limited
(ASX:KCN) has attributed wet weather conditions for an 11 per cent drop in its first quarter production.
The gold producer’s output fell at its Thailand operations due to monsoonal rains restricting access roads and pit access.
The company’s Challenger mine in South Australia was impacted by a water shortage due to a water bore failure restricting ore treatment through the process plant.
In the September quarter Kingsgate says it achieved gold sales of 33,330 ounces at $US1,699 per ounce and maintained a strong operating cash margin.
The company also finalised its $75 million purchase of the Bowdens silver project in New South Wales and has now commenced a feasibility study.
In the 2011 financial year Kingsgate Consolidated posted a net profit of $20.9 million.
