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Newmont Gold Reserves Steady; Additions Replace Depletion

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Newmont Mining Corp. (NYSE: NEM) reports gold reserves of 68.5 million ounces for 2017, unchanged from 2016 as additions and revisions fully replaced depletion. The company says it added 6.4 million ounces of gold reserves, including 4.4 million through exploration and projects and 2 million through revisions and acquisitions. Newmont has reported 5.3 million ounces of production in 2017, resulting in 6.4 million contained ounces of reserve depletion. Meanwhile, gold resources increased to 48.2 million ounces, up 1% from the prior year and offsetting the conversion of resource ounces to reserves. The company also says copper reserves rose by 7% to 1.2 million tonnes, while copper resources were largely unchanged at 2.3 million tonnes. Newmont’s says exploration expenditures are expected to increase to approximately $230 million in 2018, with about 70% allocated to “just-in-time delivery of the highest-margin reserves and resources and the remaining 30 percent allocated to greenfields, brownfields and innovation programs.”

By Allen Sykora of Kitco News;


Kirkland Lake 4Q Profit Rises On Record Gold Production

Wednesday February 21, 2018 09:08

Kirkland Lake Gold Ltd. (TSX, NYSE: KL) lists a higher profit and record output in the fourth quarter. Net earnings totaled $41 million, or 20 cents per share, an improvement from $3.1 million, or 2 cents, in the prior-year quarter. Adjusted net earnings from continuing operations were $71.2 million, or 34 cents, versus $22.8 million, or 16 cents, a year ago. Kirkland Lake lists record quarterly production of 166,579 ounces, a 56% year-on-year increase and 20% higher than in the third quarter. All-in sustaining costs averaged $816 an ounce, down from $900 in the fourth quarter of 2016. Meanwhile, for full-year 2017, the company lists a record 596,405 gold ounces produced, up 90% from 2016 and better than improved guidance of 580,000 to 595,000 ounces. AISC averaged $812 an ounce, in line with improved guidance of $800 to $825 and a 13% improvement from 2016. Full-year 2017 net earnings were $132.4 million, or 64 cents per share, compared to $42.1 million, or 35 cents, in 2016. Adjusted net earnings from continuing operations in 2017 came in at $149.1 million, or 72 cents, a 120% increase from 2016. “Operationally, we improved our guidance multiple times and still beat our target range for production and were well within the improved guidance for operating cash cost and AISC per ounce sold,” says Tony Makuch, president and chief executive officer. “We also clearly demonstrated an ability to generate cash flow, with free cash flow for the year totaling $178 million. In terms of organic growth, we increased production by 90% in 2017, 10% on a pro-forma basis, even after placing three mines on care and maintenance. We also set the stage for continued year-over-year production growth, with our longer-term goal being to reach a million ounces of annual production from existing mines within five to seven years.”

By Allen Sykora of Kitco News;


New Gold Lists 4Q Adjusted Profit, Record Gold Output

Wednesday February 21, 2018 08:51

New Gold Inc. (TSX: NGD; NYSE American: NGD) reports an adjusted profit in the fourth quarter as the company had record gold production. New Gold lists a fourth-quarter net loss of $195.6 million, or 34 cents per share, compared to a loss of $22.3 million, or 4 cents, in the same period of 2016. The company lists a number of special charges, including an impairment charge for Rainy River and a loss from the sale of Peak Mines. Excluding special items, the company lists an adjusted profit of $32.5 million, or 6 cents per share, compared to a year-ago adjusted loss of $4.9 million, or a penny. New Gold reports record quarterly gold production of 154,530 ounces, to go with 28 million pounds of copper, with all-in sustaining costs of $771 per gold ounce. For full-year 2017, the company lists a net loss of $108 million, or 19 cents per share, compared to a 2016 loss of $7 million, or a penny. Adjusted 2017 net earnings were of $49.3 million, or 9 cents, compared to $14.6 million or 3 cents, in 2016. “With production at the high end of guidance and costs below guidance, New Gold generated the highest annual cash flow in our company’s history,” says Hannes Portmann, president and chief executive officer. Full-year gold production of 430,949 ounces was at the high end of the guidance range of 380,000 to 430,000 ounces, while copper production of 104 million pounds met guidance of 100 million to 110 million. All-in sustaining costs of $727 per gold ounce were below previously lowered guidance of $760 to $800 per ounce. Rainy River achieved commercial production in mid-October, ahead of plan New Gold lists year-end mineral reserves of 14.8 million ounces of gold, 0.9 billion pounds of copper and 77 million ounces of silver, excluding Peak Mines, which was classified as a “discontinued operation” since the sale is expected to close in the first quarter.

By Allen Sykora of Kitco News;


Golden Star Resources’ Profit Rises Along With Output

Wednesday February 21, 2018 08:51

Golden Star Resources Ltd. (NYSE American: GSS; TSX: GSC; GSE: GSR) reports a higher profit in the fourth quarter as output also rose. Net income totaled $12.6 million, or 3 cents per share, compared to $3.4 million, or a penny, in the same period of 2016. Adjusted net income was $15.2 million, up from $0.1 million a year ago. Golden Star lists a 34% year-on-year increase in fourth-quarter gold production to 71,769 ounces, while all-in sustaining costs fell 16% to $1,002. For full-year 2017, net income totaled $38.8 million, or a dime per share, compared to a net loss of $39.6 million, or 13 cents, for 2016. Adjusted net income for 2017 was $46.1 million, up from $11.2 million. For the full year, the company lists a 38% increase in gold production to 267,565 ounces. "In 2017, Golden Star ramped up two underground mines and achieved or outperformed our full-year guidance on all stated metrics,” says Sam Coetzer, president and chief executive officer. The company’s 2018 guidance includes gold production of 230,000 to 255,000 ounces at AISC of $850 to $950 per ounce.

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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