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Teranga Posts Higher 1Q Adjusted Profit, Production

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Teranga Gold Corp. (TSX: TGZ) reports a higher adjusted profit than a year ago as output and prices rose but costs fell. The company lists adjusted earnings of $10.7 million, or 10 cents per share, up from $6.7 million, or 6 cents, a year ago. Net income, however, fell to $3 million, or 3 cents, from $5.6 million, or a nickel. The company produced 64,031 ounces of gold, up 13% from 56,903 in the same period a year ago. The average realized price climbed to $1,326 from $1,226, while all-in sustaining costs fell to $888 from $939 an ounce. “With the financings now in place to build our second mine and to move a third project through a future feasibility study, we have a well-defined roadmap for executing on our vision,” says Richard Young, president and chief executive officer. “Beyond the near-term priorities of Wahgnion and Golden Hill, we are also focused on advancing our extensive organic pipeline in Côte d’Ivoire for future growth.”

By Allen Sykora of Kitco News; asykora@kitco.com

 

Tahoe Reports 1Q Loss With Escobal Mine Still Shuttered

Thursday May 3, 2018 09:25

Tahoe Resources Inc. (TSX: THO, NYSE: TAHO) reports a net loss of $6.9 million, or 2 cents per share, in the first quarter, a turnaround from a profit of $74.7 million, or 24 cents, in the same period a year ago. Tahoe says the results were negatively impacted by the ongoing suspension of mining at Escobal in Guatemala, which resulted in no material revenue for the quarter, compounded by care-and-maintenance costs of $10.4 million. Escobal, one of the world’s largest silver mines, has been shuttered since last year due to a license issue. “However, we are encouraged by the constructive public statements made by the new Constitutional Court president in Guatemala and we have had productive dialogue at the Casillas roadblock,” says Ron Clayton, president and chief executive officer. “We believe we are well positioned to resume operations at Escobal once a positive court ruling is received.” Meanwhile, Tahoe reports that first-quarter gold production was 90,900 ounces at all-in sustaining costs of $1,158. Output was down from 119,000 ounces in the same period a year ago, while AISC are up from $860. Production at the La Arena, Shahuindo and Bell Creek mines went according to plan during the quarter, Tahoe said. However, production at Timmins West was less than planned due to paste fill delays because of extreme cold weather in January and mechanical issues in February, which have since been resolved. An expansion at Shahuindo, for processing of 36,000 tonnes per day, is on track for ramp-up by the end of the year, Tahoe says. Also, the Bell Creek shaft project is progressing towards completion early in the fourth quarter.

By Allen Sykora of Kitco News; asykora@kitco.com

 

Royal Gold Reports Higher Adjusted Profit

Thursday May 3, 2018 09:25

Royal Gold, Inc. (Nasdaq: RGLD) reports an adjusted profit of $31.3 million, or 48 cents per share, for its fiscal third quarter that ended March 31. The company said this was up 32% from the prior-year quarter. Royal Gold lists a net loss of $153.7 million, or $2.35 per share. However, Royal Gold says this included non-cash special items of $184.9 million. “We delivered another quarter of solid operating performance, which included our first full quarter sales of gold and silver from Rainy River,” commented Tony Jensen, President and CEO. “While a non-cash impairment from Pascua-Lama impacted our reported earnings, we continue to believe that the project presents significant option value for Royal Gold shareholders.” Revenue increased 8% to $116 million. Volume of 87,300 gold-equivalent ounces was in line with the same quarter a year ago. However, the average realized gold price rose 9% to $1,329 an ounce. The end-of-quarter inventory included 26,000 gold ounces and 659,000 silver ounces, an increase over the prior quarter due to deliveries received in late March, Royal Gold says.

By Allen Sykora of Kitco News; asykora@kitco.com

 

Golden Star Reports 1Q Net Profit

Thursday May 3, 2018 09:25

Golden Star Resources Ltd. (NYSE American: GSS; TSX: GSC; GSE: GSR) reports net income in the first quarter was $1 million, or zero cents per share, compared to $170,000, or zero cents, in the first quarter of 2017. The company lists an adjusted loss of $1.4 million, or zero cents, compared to an adjusted profit of $3.4 million, or a penny, in the same period a year ago. Gold production of 57,616 ounces in the first quarter of 2018 was comparable to 57,795 ounces a year ago. All-in sustaining costs per ounce were $1,171. The company says higher-than-expected costs were due to “challenges” at the Prestea underground gold mine in the first quarter. However, Golden Star says, the Prestea underground performance has improved “significantly” since the start of the second quarter. Golden Star says it on track to achieve its consolidated full year guidance for production and costs.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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