EMP's report for the last quarter was a mixed bag which revealed...

EMP's report for the last quarter was a mixed bag which revealed only small incremental improvement.

The market was clearly disappointed.

The improvements from the current Phase 2 expansion programme should materialise strongly by this time next year.

Current weakness may well represent a sound buying / topping up opportunity.

"Emperor Mines Ltd in its quarterly summary said gold production was down 6 pct from the previous quarter to 26,335 ozs. Tonnage decreased 1 pct to 133,689 tonnes while delivered grade decreased by 3 pct to 7.05 gpt gold. Within the quarter, curtailment of mining lower grade material resulted in lower tonnes but an improvement in grade from 6.44 gpt gold in July to 7.68 gpt gold in September.

The quarterly financial result was an improved performance despite a net loss of $2.866 million. Excluding accounting adjustment for hedging restructure and other once off year end adjustments, the quarterly result improved by 42.7 million on the previous quarter, primarily due to a5 pct reduction in the cash cost per oz together with lower non cash costs.

Capex totalled $5.8 million in the quarter, largely related to the ongoing Phase 2 expansion plan.

The 2nd quarter's financial results are expected to show a slight improvement on the current quarter.

While the unexpected loss of available high grade ore at the Matanagata East orebody in late 2002 has continued to impact, as a result of the higher levels of development undertaken in accordance with the Phase 2 expansion plan, the company expects production to materially return to original expectations from the third quarter.

Underground working conditions improved by upto 2 degrees during the quarter at the Smith shaft section as a result of the new ventilation shaft and the commissioning of a new refrigeration unit."