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Tucano delivers for Beadell
The West Australian

Beadell Resources has signed off on a first full year of gold production from its Tucano mine in Brazil, with fewer ounces than forecast but a robust cash pile.

The 116,000oz produced in the December half compared with Tucano's budget of 120,000oz, following a sharp fall in ore movement in the final three months of the year and the early start of the wet season.

As a result, Beadell flagged that basic cash costs at Tucano in the December half were likely to be at the upper end of its guidance of $US435/oz to $US485/oz, before factoring in iron ore credits.

Beadell will release its full December quarter and half-year report later this month but used yesterday's update to highlight the cash earnings power of Tucano despite weakening gold prices.

The Perth company spent $54 million in the past six months on debt repayments and Tucano plant and equipment upgrades but still closed out 2013 with $25 million in cash and bullion and a gold and currency hedge book $35.5 million in the black.

Beadell celebrated the first gold pour at Tucano in December 2012 and spent last year ramping up production and fine-tuning the operation. The December quarter yielded 60,823/oz as the 3.5 million tonne-a-year processing plant operated at up to 4.3mtpa. The gold recovery rate was 92 per cent.

Beadell shares yesterday firmed 1¢ to 82.5¢ in a weaker overall market.

The company's shares have been suffering as investors deserted gold stocks in general. But Tucano's low costs allowed Beadell to avoid the savaging dished out to many of its WA peers with higher-cost mines.