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Centerra 2Q Profit, Production Soar; Output Guidance Revised Higher

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Centerra Gold Inc. (TSX: CG) says second-quarter net earnings jumped to $23.4 million, or 8 cents per share, from $2.9 million, or a penny, in the same period a year ago. The company adjusted the value of its Mongolian assets and recorded a pre-tax asset impairment of $41.3 million. The April-June results include Thompson Creek operations, although comparative results for the same period in 2016 does not, since Centerra did not buy Thompson Creek Metals Inc. until October. April-June gold production doubled to 195,719 ounces, including a 42% year-on-year increase to 138,623 ounces at Kumtor. Company-wide all-in sustaining costs, on a by-product basis, per ounce sold were $742, excluding revenue-based tax in the Kyrgyz Republic and income tax. Mount Milligan produced 15.1 million pounds of copper during the period. “With our second-quarter earnings release today, the company increased its gold production guidance for Kumtor for the year to 525,000 – 555,000 ounces and company-wide gold production to 785,000 to 845,000 ounces [from 715,000 to 795,000 previously],” says Scott Perry, chief executive officer. “We also lowered our expected all-in sustaining cost guidance at Kumtor to $751 to $795 per ounce sold and company-wide all-in sustaining costs on a by-product basis per ounce sold guidance to $693 to $747.”

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

 

Guyana Lists 2Q Loss, Sees Improvement In 3Q

Tuesday August 01, 2017 08:28

Guyana Goldfields Inc. (TSX: GUY) lists a net loss in the second quarter but sees better days ahead, according to an earnings release. Guyana posted a net loss of $3.1 million, or 2 cents per share, compared to a profit of $7.6 million, or 5 cents, in the same period a year ago. Gold production from the Aurora mine was 29,700 ounces, down from 32,000 in the same quarter of 2016, and all-in sustaining costs were $1,144 per ounce. "The company experienced a weaker quarter with respect to both production and cost performance,” says Scott Caldwell, president and chief executive officer. “This was primarily attributable to lower-than-expected grades from stockpiled ore being fed to the mill and a higher strip ratio in the quarter. The company does not expect these issues to recur in the second half of the year with mill feed ore being sourced predominantly from the higher-grade tonalite at Rory's Knoll while the strip ratio is expected to decline significantly in both the third and fourth quarters based on mine sequencing. Looking forward, the company's 2017 production guidance remains unchanged and July's preliminary cost and operating performance is trending favorably on all metrics, and we anticipate a strong third quarter and finish to the year." Gold production from July was approximately 12,100 ounces. Guyana says it anticipates 2017 production will come in at the lower end of the guidance range of 160,000 to 180,000 ounces of gold. 

 

 

INTL FCStone: Electric Autos Pose Future Demand Risk For Platinum

 

Long-term platinum demand will take a big hit if forecasts for a dramatic increase in battery-powered automotive technology prove true, says INTL FCStone. Platinum’s largest industrial demand is use of the metal in auto catalysts – in particular, for diesel-powered vehicles. Analysts cite a Reuters report quoting the chair of the International Precious Metals Institute, Bodo Albrecht, as saying that electric cars could prove as devastating for platinum demand as digital photography was for silver. “Albrecht says that the replacement of platinum group metals by battery electric technologies could result in a whopping 40% decline in platinum demand by 2023-2040,” INTL FCStone says. “Indeed, we are already seeing some rumblings in this direction; in addition to the ongoing backlash against diesel caused by the VW [Volkswagen] scandal, Volvo became the first company to say this month that all its cars will be going fully or partly electric as of 2019. Just a day before, France said it would ban gasoline engines in new cars altogether starting in 2040 and the U.K. also fell in line with the French a few days later. If Albrecht’s analysis is correct, much of platinum’s fortunes will ride in large part on the auto industry’s ability to keep the largest component of its demand mosaic intact and re-establish the diesel engine ‘as an environmentally acceptable propulsion unit,’ at least for the carmakers and countries that still want it.”

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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