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Kirkland Lake Gold Profit Rises Sharply; Output Guidance Improved

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Kirkland Lake Gold Ltd. (TSX, NYSE: KL; ASX: KLA) reports higher second-quarter earnings and record cash flow, plus the company lists improved guidance for 2018. Production for the year is now targeted at over 635,000 ounces, up from 620,000 previously. Cash operating cash costs are now expected to average $400 to $425 per ounce sold, down from previous guidance of $425 to $450. Net earnings were put at $61.5 million, or 29 cents per share, a 78% increase from $34.6 million, or 17 cents, in the same period a year ago. Adjusted second-quarter net earnings totaled $63.4 million, or 30 cents, up from $39.3 million, or 19 cents, a year ago.  The company says record quarterly cash flow from operations was $120.9 million, 56% higher than the year-ago period and up 35% increase from the first quarter. Production rose to 164,685 ounces from 160,305 in the second quarter of 2017. The quarterly dividend, paid on July 13, increased to 3 cents a share, compared to 2 cents for the dividend paid in April. Tony Makuch, president and chief executive officer, says the results were boosted by strong ore grades at the Fosterville and Macassa mines. “At Fosterville, our average grade…of 20.6 grams per tonne was well ahead of expected levels, with the mine benefiting from a record month in June, producing 31,710 ounces at 30.4 grams per tonne,” the CEO says. “At Macassa, our stopes around the 5,700-foot level, the deepest mining done to date in the South Mine Complex, are high-grade stopes that have outperformed, which resulted in record quarterly production…of 60,571 ounces at an average grade of 21.5 grams per tonne.”

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

 

Mandalay Resources Plans To Sell Challacollo Silver-Gold Project

Wednesday Aug 1, 2018 09:18

Mandalay Resources Corp. (TSX: MND) says it has entered into a nonbinding letter of intent to sell  Minera Mandalay Challacollo Limitada, which owns the Challacollo silver-gold project located in Chile, to Aftermath Silver. Mandaly reports that the sale price was C$11.625 million. “One of Mandalay’s key strategic objectives for 2018 was to maximize the value of our portfolio through the sale of non-core assets,” says Dominic Duffy, president and chief executive officer of Mandalay. “The proposed sale of Challacollo will allow us to realize substantial value for the asset, while continuing our focus on streamlining operations at our two producing assets, strengthening our balance sheet, and positioning Mandalay for future growth.”

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

 

Stewart Named Chief Operating Officer Of McEwen Mining

Wednesday Aug 1, 2018 09:18

Chris Stewart has been named president and chief operating officer of McEwen Mining Inc. (NYSE, TSX: MUX), effective Sept. 1, the company reports. He succeeds Xavier Ochoa, who resigned July 13 to pursue an opportunity closer to his home and family in South America, the company says. Stewart is a senior executive with 25 years of diversified experience in the mining industry. “Chris is an ideal executive to lead our organic growth initiatives, as well as evaluate and execute on acquisitions,” says Rob McEwen, chairman and chief owner.

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

 

Centerra Net Income Rises But Adjusted Income Lower

Wednesday Aug 1, 2018 09:18

Centerra Gold Inc. (TSX: CG) reports higher net income but lower adjusted income in the second quarter, compared to the same period a year ago. The company lists net income of $43.5 million, or 15 cents per share, up from net income of $23.4 million, or 8 cents, in the year-ago period. The April-June results include a pre-tax gain of $28 million on the sale of its royalty portfolio and $9.4 million on the final installments from sale of the Altan Tsagaan Ovoo property. Excluding special items, Centerra said, adjusted income was $1 million, or zero cents per share. Excluding a $41.3 million pre-tax write-down of Mongolian assets, adjusted earnings in the year-ago period were $63.1 million, or 22 cents a share. “The operations produced a total of 130,183 ounces of gold and 16.5 million pounds of copper in the quarter,” says Scott Perry, president and chief executive officer. “Kumtor’s gold production was lower as expected but Mount Milligan achieved better-than-expected mill throughput, which led to higher-than-planned gold and copper production. At Mount Milligan, the additional volumes of water from the spring melt allowed us to ramp up mill throughput quicker, enabling the mill to achieve an average of 52,081 tonnes per operating day during the quarter.” Progress on the Öksüt project includes the main road access and initiating site preparation, Centerra says. The project is on track for the first gold pour in 2020.

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

 

Endeavour Mining Reports Higher 2Q Adjusted Earnings  

Wednesday Aug 1, 2018 09:18

Endeavour Mining (TSX: EDV) reports that second-quarter adjusted net earnings per share were 9 cents, up from 7 cents in the same period of 2017. Production from continuing operations was 147,000 gold ounces in the second quarter, up from 84,000 a year ago, leaving the company well on track to meet full-year 2018 guidance of 555,000 to 590,000 ounces, Endeavour says. All-in sustaining costs were $780 in the second quarter, and the company says it is on track to meet full-year guidance of $760 to $810. Officials say that production from continuing operations increased year-on-year due to the addition of the Houndé mine and higher grades at the Ity mine. “Construction progress at the Ity CIL project remains on time and on budget and we continue to anticipate the first gold pour by mid-2019,” says Sébastien de Montessus, president and chief executive officer.

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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