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Kirkland Lake Gold Revises 2017 Output Guidance Higher

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Kirkland Lake Gold Ltd. (TSX: KL; OTCQX: KLGDF) upped 2017 production guidance after a profitable first quarter. The company listed quarterly production of 130,425 ounces of gold, more than double output in the same period a year ago. Kirkland Lake upwardly revised its 2017 guidance to between 530,000 and 570,000 ounces, from 500,000 to 525,000 previously, and reduced its outlook for all-in sustaining costs per ounce sold to $850 to $900. The company says this is underpinned by Fosterville's revised guidance of 200,000 to 225,000 ounces. Net first-quarter earnings were $13.1 million, or 6 cents per share, with adjusted net earnings of $16.1 million, or 8 cents. Fosterville achieved record quarterly output of 46,083 ounces of gold. Tony Makuch, president and chief executive officer, cites confidence in an increasing grade profile at Fosterville. “As a result, we have updated our consolidated outlook to reflect predictable and achievable operational improvements,” he says. Makuch later adds, “Subsequent to the quarter end, we have decided to temporarily suspend production at the Cosmo Mine to allow the company to conduct a review of operations and obtain a better understanding of near mine exploration targets, including the newly discovered Lantern Deposit to support future profitable organic growth.”

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

 

McEwen Mining Lists 1Q Loss With Drilling At Los Azules

Thursday May 4, 2017 09:44

McEwen Mining Inc. (NYSE, TSX: MUX) reports a net loss of $3 million, or a penny per share, in the first quarter, compared to a net income of $13 million, or 4 cents, for the same period in 2016. The loss was mainly due to a $6.4 million decrease in sales of gold and silver by the El Gallo mine, coupled with a $6.7 million increase in exploration costs, mostly related to the drilling campaign performed at the Los Azules project, the company says. During the quarter McEwen Mining achieved consolidated production of 29,733 gold-equivalent ounces, compared to 37,958 in the same period a year ago. The El Gallo mine produced 9,808 gold-equivalent ounces and reported earnings from mining operations of $8.2 million, while the San José mine produced 19,925 gold-equivalent ounces and reported earnings from mining operations of $5.7 million, the company says. McEwen also says it remains on track to meet production and cost guidance for 2017. Output is expected to be 49,700 ounces of gold and 24,000 ounces of silver from the El Gallo mine, and 50,000 ounces of gold and 3.3 million ounces of silver from the San José mine. Using a silver to gold ratio of 75:1, this represents projected consolidated production of 144,000 gold-equivalent ounces, McEwen says.

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

 

Sibanye Takeover Of Stillwater Mining Co. Completed

Thursday May 4, 2017 09:44

Stillwater Mining Co. reports that a previously announced takeover of the company by a Sibanye Gold Ltd. subsidiary has been completed. Stillwater shareholders received $18 per share. Stillwater is the only U.S. miner of platinum group metals and the largest primary producer of PGMs outside of South Africa and the Russian Federation. The company’s shares will be delisted from the New York Stock Exchange.

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

 

B2Gold Reports 1Q Adjusted Profit; Output Above Budget

Thursday May 4, 2017 09:30

B2Gold Corp. (TSX: BTO; NYSE MKT: BTG; NSX: B2G) reports a small uptick in adjusted first-quarter net income, with gold output ahead of expectations. Adjusted earnings were $19.4 million, or 2 cents per share, compared to $18.9 million, also 2 cents, in the prior-year quarter. The company generated a net loss of $4.6 million, or a penny per share, compared to net income of $6.7 million, or 1 cent, in the same quarter last year. Consolidated gold production of 132,736 ounces was 6% (7,955 ounces) above budget and 4% (4,892 ounces) higher than the same period in 2016. Consolidated all-in sustaining costs of $889 per ounce were $262 per ounce, or 23%, below budget. B2Gold says it is on track to meet its 2017 annual guidance of between 545,000 to 595,000 ounces of gold production. Fekola mine construction remains three months ahead of schedule for an anticipated Oct. 1 production start, with the project also on budget. In 2018, with the planned first full-year of production from Fekola, the company projects consolidated gold production will increase significantly to between 900,000 and 950,000 ounces.

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

 

Richmont Mines Records Profit In First Quarter

Thursday May 4, 2017 09:30

Richmont Mines Inc. (TSX, NYSE: RIC) reports first-quarter earnings of earnings of C$5.5 million, or US$4.1. In Canadian dollar terms, earnings were 9 cents per share, compared to 15 cents in the same period a year ago. In U.S. dollar terms, earnings per share were 7 cents, compared to 11 cents a year ago. Company-wide production was 29,401 ounces of gold, down from 32,369 in the same period of 2016. “The ongoing transformation of the Island Gold Mine continues to advance and we remain on schedule to release our expansion case preliminary economic assessment in the second quarter, which will support our overall objective of positioning the Island Gold Mine as one of the lowest-cost underground gold producers in the Americas," says Renaud Adams, chief executive officer.

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

 

Alamos Reports Rise In 1Q Output; Earnings Per Share Zero Cents

Thursday May 4, 2017 09:30
 
Alamos Gold Inc. (TSX, NYSE: AGI) reports first-quarter net earnings of $0.1 million, or zero cents per share, which includes an unrealized foreign-exchange gain of $5.9 million. Earnings in the same period a year ago were $9.7 million. Alamos says it generated cash flow from operating activities, before changes in working capital, of $34.2 million, or 12 cents per share. The company reports gold output of 96,200 ounces, up from 94,632 in the same period of 2016. "We had a solid start to the year operationally and with stronger production and lower costs expected through the rest of 2017, we are on track to achieve full-year guidance across all metrics. We expect this to drive significant free cash flow growth from our operations, especially in the second half of 2017 as we benefit from higher throughput rates at Young-Davidson and initial production from La Yaqui," says John A. McCluskey, president and chief executive officer. Gold production is expected to range between 400,000 to 430,000 ounces at all-in sustaining costs of $940 per ounce in 2017. The company declared a semi-annual dividend of a penny per share. Construction of La Yaqui Phase I continues, with initial production on track for the second half of 2017.

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

 

Silver Standard Reports Jump In First-Quarter Profit

Thursday May 4, 2017 08:45

Silver Standard Resources Inc.’s (NASDAQ: SSRI; TSX: SSO) first-quarter profit rose sharply. The company lists net income of $15 million, or 13 cents per share, up from $2.3 million, or 3 cents, in the same period of 2016. Adjusted earnings were $19.7 million, or 17 cents, up from $9 million, or 11 cents. The company says a 16% jump in quarterly revenue to $118 million was due to higher realized prices of gold by 3% and silver by 16%, combined with an 8% increase in gold-equivalent ounces sold. The company describes output as consistent, with 97,851 gold-equivalent ounces at all-in sustaining costs of $977 per payable gold-equivalent ounce. The company’s 2017 guidance was unrevised, with Silver Standard looking for 355,000 gold-equivalent ounces. “Our three cash-flowing mines generated $31 million of operating cash flow, supporting our continued investments in sustaining and growing our operations, while also adding to our cash balance which now totals $341 million,” says Paul Benson, president and chief executive officer. “This marks the sixth quarter in a row we have added to our cash position.”

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

 

Great Panther Records 1Q Profit Despite Topia Suspension

Thursday May 4, 2017 08:45

Great Panther Silver Ltd. (TSX: GPR; NYSE MKT: GPL) reports net income of $3 million, or 2 cents per share, for the first quarter, a turnaround from a net loss of $3.4 million, also 2 cents, in the same quarter of 2016. Higher prices for precious metals and favorable foreign-exchange rates offset the impact of lower production and sales volumes due to temporary suspension of Topia’s milling operations, the company says. Great Panther also recorded a non-cash $1.8 million foreign-exchange gain. Production decreased 28% to 730,186 silver-equivalent ounces, with silver output down 32% to 366,435 ounces. Robert Archer, president and chief executive, says the quarterly profit was “particularly notable given that we suspended processing at Topia to complete plant upgrades and prepare for the transition to a new tailings storage facility, and therefore only had nominal production from Topia during the quarter. The Topia upgrades were completed under budget and commissioning of the plant is expected to be complete by mid-May.”

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

 

Golden Star 1Q Output Rises But Earnings Decline

Thursday May 4, 2017 08:45

Golden Star Resources Ltd. (NYSE MKT: GSS; TSX: GSC; GSE: GSR) reports a rise in first-quarter gold output but a decline in earnings. Net income was $0.2 million, or zero cents per share, compared to $2.1 million, or a penny, in the first quarter of 2016. The decline was due primarily to a mining operating loss at Wassa, which was partially offset by a higher mine operating margin at the Prestea Open Pits and a fair value gain on financial instruments. The loss at Wassa was due to lower production from the Wassa Main Pit as a result of mining in a lower-grade ore zone, higher mining costs associated with underground mining and production from Wassa Underground affected by mining in the lower grade F Shoot, Golden Star says. After special items, adjusted net earnings were $3.4 million, compared to $8.5 million in the same period in 2016. Golden Star says the January-March period marked its strongest quarterly production since cessation of the refractory operation in the third quarter of 2015. The company lists a 9% year-on-year increase in gold production to 57,795 ounces, with all-in sustaining costs of $977. Golden Star says costs are expected to decrease further as Wassa Underground continues to ramp up and the high-grade Prestea Underground Gold Mine begins production. “Although our costs are lower than those we achieved in the full-year 2016, we are committed to driving them down further still through the delivery of high-margin ounces from our two underground mines,” says Sam Coetzer, president and chief executive officer. “Our focus is now on bringing Prestea Underground into production, optimizing the relationship between the open pit and underground operations at Wassa and on gaining a better understanding of the upside potential of our assets through our exploration program.  We are on track to achieve our 2017 guidance on all announced metrics and I look forward to updating the market on exploration results as we begin to look towards future growth."

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

 

Asanko Reports Profit, Record Production In First Quarter

Thursday May 4, 2017 08:45

Asanko Gold Inc. (TSX, NYSE MKT: AKG) reports first-quarter net income and adjusted income of $7.8 million, or 4 cents per share. This was a turnaround from a net loss of $8.5 million, or 4 cents, in the same period a year ago. The year-ago adjusted loss was $4.1 million, or 2 cents. Peter Breese, president and chief executive officer, reports the third consecutive quarter of record production for the company, with output of 58,187 ounces. We continue to see 2017 as a year of two halves from both a cost and production perspective,” Breese says. “In May we commenced the western wall pushback of the Nkran pit, where the majority of mining will be in softer oxide material. In H2 we bring Dynamite Hill and its lower-cost oxide ores into production. These modifications to the production plan, together with the early commissioning of Project 5 Million, will increase our production profile in H2 and reduce the associated operating costs. We therefore maintain our annual guidance of 230,000 (to) 240,000 ounces at an AISC (all-in sustaining cost) of $880 (to) $920/oz.”

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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