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B2Gold Fourth-Quarter Profit Rises

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B2Gold Corp. (TSX: BTO; NYSE AMERICAN: BTG; NSX: B2G) reports a higher profit in the fourth quarter even when excluding the revenue from the new Fekola mine, for which construction was completed in September. The company recorded net income of $34.5 million, or 3 cents per share, up from $8.1 million, or a penny, in the year-ago period. Adjusted net income rose to $5.7 million, or a penny, from $2.5 million, or zero cents, in the fourth quarter of 2016. B2Gold explains for that for 2017, proceeds from the sales of pre-commercial production from Fekola ($100.9 million) and related production costs ($27.5 million) -- for a gain of $73.4 million -- were counted against mine construction costs and not recorded as part of net income. The company lists record quarterly consolidated gold production of 240,753 ounces, including 72,903 ounces of precommercial output from Fekola, 71% more than the same period in 2016. For full-year 2017, B2Gold reports net income of $61.6 million, or 6 cents, up from $38.6 million, or 4 cents, for 2016. Adjusted net income was $51.8 million, or a nickel, in 2017, compared to $99 million, or 11 cents, in 2016. B2Gold lists record production for the ninth year of 630,565 ounces of gold, exceeding the upper end of the revised guidance range of 580,000 to 625,000 ounces. With the planned first full year of production from Fekola, the company’s outlook for 2018 calls for a sharp rise in output to between 910,000 and 950,000 ounces of gold.

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

 

Klondex Mines Reports Adjusted Profit In 4Q

Thursday March 15, 2018 08:55

Klondex Mines Ltd. (TSX: KDX; NYSE American: KLDX) reports a net loss in the fourth quarter that the company attributes to changes in U.S. tax laws, but finished with an adjusted profit. The net loss was $7.7 million, or 4 cents per share, compared to a profit of $2.2 million, or 2 cents, in the year-ago period. The October-December bottom line was negatively impacted by $8.9 million for higher income-tax expense related to changes in tax laws, Klondex reports. Excluding this impact, company’s adjusted net income was $1.2 million, or a penny per share. Klondex says it mined 55,893 gold-equivalent ounces (GEOs), with production of 47,619. For full-year 2017, the company reports a net loss of $23.7 million, or 13 cents, compared to a loss of $1.7 million, or a penny, in 2016. Excluding the impact of tax-law changes, the adjusted net loss for 2017 was $14.8 million, or 8 cents, Klondex says. The company reports that it mined 222,233 GEOs, with production of 189,456 GEOs, an increase of 17% from 161,289 produced during 2016. “The company produced more ounces and generated more revenue during 2017 than any year in the organization’s history,” says Paul Huet, president and chief executive officer. “However, we did not deliver on our stated objectives and we understand that is not acceptable. We have learned from the challenges in 2017 and are moving forward….We are confident in our plans and are determined to deliver on our stated operating and cash-flow objectives for 2018.” The company projects output of between 186,000 and 202,000 GEOs during 2018 at an expected production cash cost per GEO sold of $675 to $725. Higher levels of output are expected during the second and third quarters due to the processing of tailings, Klondex says.

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

 

Asanko Reports 4Q Profit After Taxes

Thursday March 15, 2018 08:55

Asanko Gold Inc. (TSX: AKG; NYSE American: AKG) reports a fourth-quarter loss due to tax expenses but otherwise a profit. The net loss was listed at $7.1 million, a turnaround from a $4.7 million third-quarter profit, and included higher deferred income-tax expense of $10.1 million. Excluding this and other special items, net income before taxes for was $7.1 million. Gold output from the Asanko mine in the fourth quarter was 51,550 ounces. For full-year 2017, Asanko lists net income of $6.1 million, or 3 cents, a $19.3 million improvement from the 2016 bottom line. Gold production was 205,047 ounces in 2017, within the amended guidance range, the company reports. All-in sustaining costs were put at $1,007 an ounce, above guidance of $920 to 960 due to higher capitalized pre-stripping costs at Nkran, Asanko reports. “2017 was a challenging year and we learned some important lessons from the operational issues we faced,” says Peter Breese, president and chief executive officer. “The introduction of the new resource models at Nkran and Akwasiso, together with a number of new mining and processing systems during [the second half of 2017], are producing the desired results.” For 2018, Asanko is targeting 200,000 to 220,000 ounces of gold at AISC of $1,050 to 1,150, weighted in favor of the second half when ore yields from Nkran are expected to resume steady-state production levels. The company projects annual production for the 2019-2023 period of 253,000 ounces at AISC of $860 an 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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