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Coeur Mining Agrees To Acquire Northern Empire Resources

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Coeur Mining, Inc. (NYSE: CDE) says it has agreed to acquire all shares in Northern Empire Resources Corp. (TSXV: NM) that Coeur does not already own. The all-stock deal was valued at $90 million and represents a premium to Northern Empire’s 20-day trailing volume-weighted average share price. Northern Empire’s principal asset is the Sterling gold project located in Nevada. Coeur says it will aim for a quick restart of the Sterling Mine while aggressively exploring the Crown Block and other targets. “The transaction, which provides a unique opportunity for Coeur to leverage its operational expertise in Nevada, a leading mining jurisdiction, and add expected near-term, high-margin production and cash flow with minimal upfront capital, together with significant exploration potential, satisfies all of our acquisition criteria and is accretive on all key financial and operational metrics,” says Mitchell Krebs, president and chief executive officer of Coeur. The transaction will be subject to two-thirds approval by Northern Empire shareholders at a special meeting planned for September, Coeur says. The company adds that both boards of directors have unanimously approved the merger.

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

 

Sandstorm Gold Reports 2Q Profit On Higher Sales

Thursday August 2, 2018 09:46

Royalty company Sandstorm Gold Ltd. (NYSE American: SAND; TSX: SSL) moved back in the black during the second quarter. The company lists a net profit of $0.7 million, compared to a year-ago net loss of $1.9 million. Sandstorm says it sold 14,465 gold-equivalent ounces, compared to 12,750 a year ago.

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

 

Teranga Gold Reports Record Production, Increases Guidance

Thursday August 2, 2018 09:17

Teranga Gold Corp. (TSX: TGZ) upped 2018 production guidance after record output in the second quarter. The company churned out 65,381 ounces in the April-June period, up from 57,557 in the second quarter of 2017. Teranga now lists full-year guidance of “at least 230,000 ounces” compared to the previous expectation of 210,000 to 225,000 ounces. Teranga reports an adjusted profit of $6.2 million for the second quarter, or 6 cents per share, compared to $9.7 million, or 9 cents, a year ago. Net income rose to $11.6 million, or 11 cents, from $9.6 million, or 9 cents. “By the end of 2019, we expect to increase our annualized gold production by about 50% to between 300,000 and 350,000 ounces, diversifying our production base and adding significant scale with a second long-life mine – Wahgnion,” says Richard Young, president and chief executive officer. “Additionally, we are prioritizing Golden Hill within our exploration portfolio given it has the potential to be our third mine and move us into the mid-tier producer category.”

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

 

Alamos Adjusted Profit Lower Than Year Ago

Thursday August 2, 2018 09:17

Alamos Gold Inc. (TSX, AGI) lists adjusted net earnings of $4.9 million, or a penny per share, for the second quarter. This reflects adjustments for unrealized foreign-exchange losses recorded within both deferred taxes and foreign exchange of $15.3 million, as well as other one-time items, Alamos says. The adjusted profit is down from $9.8 million a year ago. The company lists a net loss of $8.9 million, a turnaround from a $2.4 million profit a year ago. The loss was due largely to foreign-exchange movements, Alamos says. Cash costs rose to $832 an ounce from $784, which Alamos blames on lower grades and downtime at Young-Davidson. Alamos produced 126,500 ounces of gold, 19% higher than the second quarter of 2017. “With near-record production in the second quarter, we came in slightly ahead of expectations and remain well positioned to achieve full-year guidance,” says John A. McCluskey, president and chief executive officer. “This reflected another strong outperformance from Mulatos and Island Gold, with production guidance for both mines increased for the second consecutive quarter.”

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

 

Asanko Gold 2Q Adjusted Net Profit Rises

Thursday August 2, 2018 09:17

Asanko Gold Inc. (TSX, NYSE American: AKG) reports a rise in its second-quarter adjusted profit and says output for the first half of 2018 was above guidance. The producer lists a net loss of $142.3 million, compared to net income of $0.6 million in the year-ago period. The red bottom line was due to a $144.6 million loss on reclassification of Ghanaian subsidiaries to net assets held for sale, resulting from the Gold Fields joint-venture transaction, Asanko says. Excluding special items, adjusted net income was $2.3 million, or a penny per share, up from $0.7 million, or zero cents, in the second quarter of 2017. “The mine’s solid operational performance for the quarter, predominantly the mill’s fantastic performance and Nkran resuming steady-state operations, enabled us to beat the top end of our guidance for the first half of 2018, producing 101,731 ounces at [all-in sustaining costs] of $1,145/oz,” says Peter Breese, president and chief executive officer. “We are well positioned to meet our H2 2018 and full-year guidance.” The company says April-June gold production of 53,501 ounces was up from 46,017 in the same quarter a year ago.

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

 

Endeavour Silver Reports Net Loss, Higher Output

Thursday August 2, 2018 09:17

Endeavour Silver Corp. (NYSE: EXK; TSX: EDR) lists a second-quarter loss due to factors such as foreign exchange, but reports higher production than in the same period a year ago. Endeavour’s net loss was $5.7 million, or 4 cents per share, compared to $16,000 loss in the second quarter of 2017, saying this was primarily due to higher depreciation and depletion charges and a foreign-exchange loss. Revenue increased 19% to $38.8 million. Silver production increased 19% to 1,355,895 ounces, while gold production increased 5% to 13,674 ounces, resulting in silver-equivalent output of 2.4 million.

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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