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Tahoe Resources Reports 4Q Loss As Escobal Shutdown Continues

Kitco News

Tahoe Resources Inc.  (TSX: THO; NYSE: TAHO), which has been dealing with a shutdown of the giant Escobal silver mine in Guatemala over a mining-license issue, posted a loss in the fourth quarter of $18 million, or 6 cents per share. This compares to 0.3 million, or nil, in the same period a year ago. The adjusted loss was $17.7 million, a turnaround from an $18.4 million profit a year ago. For full-year 2017, net earnings were $81.8 million, or 26 cents, down from $117.9 million, or 41 cents, in 2016. Adjusted earnings fell to $84 million from $180.4 million. The company lists no silver output in the fourth quarter, while 2017 production fell to 9.9 million ounces from 21.3 million. Gold output was 105,800 ounces in the fourth quarter. “Tahoe achieved record gold production of 445,900 ounces in 2017, realizing the high end of its annual gold production guidance range of 400,000 to 450,000 ounces,” says Ron Clayton, president and chief executive officer. “The strong gold production for the year was driven primarily by La Arena.” He later adds, “We remain optimistic that based on legal precedent, the Guatemalan Constitutional Court will issue a favorable ruling reinstating the Escobal mining license.” As the Escobal shutdown continues, the company is not listing 2018 silver-output guidance. Officials project gold production of between 400,000 and 475,000 ounces, noting this is down 25,000 from the initial target.

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

 

SSR Mining Profitable In 4Q, Sees Higher 2018 Output

Friday February 23, 2018 09:10

SSR Mining Inc. (Nasdaq, TSX: SSRM) posted a fourth-quarter profit and looks for gold-equivalent output to rise 27% in 2018. October-December net earnings were $16.9 million, or 14 cents per share, up from $12.1 million, or 10 cents, in the year-ago period. However, adjusted earnings fell to $2.9 million, or 2 cents, from $30.8 million, or 26 cents. For full-year 2017, SSR generated net income of $71.5 million, or 58 cents per share, up from $65 million, or 63 cents, in 2016. Adjusted 2017 net income was $40.1 million, or 34 cents, down from $100.3 million, or 97 cents. Paul Benson, president and chief executive officer, says the company generated $145 million of operating cash flow from more than 370,000 gold-equivalent ounces of annual production. He adds that SSR has met or exceeded annual production and cost guidance for six consecutive years, while increasing reserves and mine life. “Looking ahead, 2018 is an exciting year for SSR Mining with the ramping up of the Chinchillas mine and continued growth in production at Seabee,” the CEO says. “Our current mine plans forecast consolidated production to rise by 27% from this year to over 410,000 gold-equivalent ounces in 2021, and this is before we evaluate a potential expansion at Marigold, and any increase resulting from our investment in brownfields exploration.”

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

 

Guyana Goldfields 4Q Profit Rises On Record Production

Friday February 23, 2018 09:10

Guyana Goldfields Inc. (TSX: GUY) reports a profitable fourth quarter on record output. Net income was $14 million, up from $3.4 million in the same period of 2016. For the full year, net income was steady at $27 million. The company lists record gold production of 48,900 ounces in the fourth quarter. Full-year output of 160,500 ounces of gold was within guidance. "Guyana Goldfields closed out 2017 on an operational high note, achieving record gold production along with record low operating-cost metrics,” says Scott Caldwell, president and chief executive officer. “Looking ahead for 2018, we are looking forward to maintaining this momentum as we deliver on the optimized life-of-mine plan which envisages 200,000 ounces of gold produced for 2018 and providing consistent production growth thereafter. The Phase 1 mill expansion is expected to be completed on time and on budget by the end of March and we expect the Phase 2 mill expansion, which would increase hard rock throughput capacity to 7,500 tonnes per day, to be completed by the end of this year.”

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

 

Centerra Gold Fourth-Quarter Rises Sharply

Friday February 23, 2018 08:21

Centerra Gold Inc. (TSX: CG) says its fourth-quarter profit doubled as revenues rose sharply. The company lists net earnings of $130 million, or 45 cents per share, on revenues of $358.2 million in the fourth quarter. During the same period in 2016, net earnings were $63.6 million, or 23 cents, on revenues of $305.7 million. For the October-December period, earnings included a tax benefit of $21.3 million as a result of a change in tax legislation enacted in the U.S., Centerra says. Excluding this item, adjusted earnings in the fourth quarter were $108.7 million, or 37 cents, up from $68.6 million, or 24 cents, a year ago. For full-year 2017, Centerra recorded net earnings of $209.5 million, or 72 cents, on revenues of $1.2 billion. This is up from income of $151.5 million, or 60 cents, on revenues of $757.7 million in 2016. The increase in earnings in 2017 reflects a full-year of operations at Mount Milligan and increased production at Kumtor, the company says. Excluding a number of special items, adjusted earnings in 2017 were $281 million, or 96 cents, compared to $160.9 million, or 64 cents, in the comparative year. “I am pleased to report that we met our overall gold production guidance, producing 785,316 ounces at an all-in sustaining cost on a byproduct basis of $688 per ounce sold, beating the low end of our all-in-sustaining cost guidance for the year,” says Scott Perry, president and chief executive officer. He later adds, ““For 2018, we are estimating consolidated gold production to be in the range of 645,000 to 715,000 ounces. Additionally, we are expecting 47 million to 52 million pounds of payable copper production from Mount Milligan for the year.”

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

 

Teranga Gold Posts 4Q Profit, Higher Output

Friday February 23, 2018 08:21

Teranga Gold Corp. (TSX: TGZ) lists a fourth-quarter profit of $5.8 million, or a nickel a share, a turnaround from a loss of $1.3 million, or a penny, in the same period a year ago. The company produced 67,934 gold ounces, up from 43,987. For full-year 2017, Teranga lists a profit of $31.9 million, or 30 cents, compared to $23.1 million, or 28 cents, in 2016. The company reports record gold production of 233,267 ounces. “Last year we achieved record gold production at our flagship Sabodala mine and advanced the Wahgnion gold project through feasibility study and construction readiness, putting Wahgnion on track for first pour by the end of 2019,” says Richard Young, president and chief executive officer. 

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

 

Argonaut Reports Higher Fourth-Quarter Profit

Friday February 23, 2018 08:21

Argonaut Gold Inc. (TSX: AR) reports fourth-quarter net income of $5.2 million, or 3 cents per share, up from 0.5 million, or nil per share, in the same period of 2016. Excluding special items, the profit was $6.4 million, or 4 cents per share, up from $5.7 million, also 4 cents. For the full year, net income was $23.9 million, 14 cents, up from $4.3 million, or 3 cents, in 2016. Adjusted earnings were $14.5 million, or 9 cents, in 2017. The company produced 34,987 gold-equivalent ounces in the October-December period, comparable to 34,384 a year earlier. Full-year output of 126,704 ounces was up from 122,097.

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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