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Gold One International exceeds production with sales of 123,179 ounces of gold

Gold One International (ASX/JSE: GDO) sold 123,179 ounces of gold in 2011, exceeding target of 120,000 ounces.

This was an 85% increase on 2010.

The production level of 120,000 ounces was important as a level below that would have seen a "claw back" in the the Jintu transaction which saw a consortium (BCX Gold) cash offer reach 89.17% holding level in Gold One.

This resulted in a $150 million capital injection into Gold One.

Gold One president and CEO Neal Froneman said, “Our operations continue to exceed their targets. With our solid operational performance and the support of the consortium as our new partner, we are very well positioned for further value accretive growth”.

Analysis

Proactive Investors wrote on 27th December:  "Current market capitalisation of Gold One of $460 million looks likely to increase significantly in 2012/2013 as corporate changes and increased gold production filters through to earnings."

Share price 27 Dec: $0.45

Share price 4 Jan: $0.51