Make Kitco Your Homepage

Centerra 1Q Profit, Gold Production Decline

Kitco News

Centerra Gold Inc. (TSX: CG) reports net earnings of $9 million, or 3 cents per share, in the first quarter,  down from $57 million, or 20 cents, in the same period a year ago. The January-March results include charges of $4.4 million for the acquisition of AuRico Metals Inc. Excluding this, adjusted earnings in the first quarter were $13.5 million, or a nickel. Revenue fell to $235 million from $285 million. The lower earnings reflect the shutdown and partial restart of milling operations at Mount Milligan, Centerra says. The company also reports lower gold production at Kumtor, due primarily to processing Sarytor ore with lower grades and lower recoveries. In all, Centerra produced 129,764 ounces of gold, including 100,220 ounces at Kumtor and 29,544 ounces at Mount Milligan. This was down from 172,644 in the same period of 2017. Company-wide all-in sustaining costs on a by-product basis per ounce sold were $932, excluding revenue-based tax in the Kyrgyz Republic and income tax reflecting the lower sales volumes. Mount Milligan produced 6.1 million pounds of copper during the quarter. “Another significant milestone achieved during the quarter was that we commenced construction activity at the Ă–ksĂĽt project in Turkey,” says Scott Perry, president and chief executive officer. “Our site contractor mobilized their equipment and crews and started work on the main access road to site.”

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

 

Goldcorp, Tr'ondëk Hwëch'in Sign Collaboration Agreement

Tuesday May 1, 2018 08:54

Goldcorp Inc. (TSX: G; NYSE: GG) and Tr'ondĂ«k HwĂ«ch'in  have entered into a collaboration agreement for the Coffee gold project. “The agreement represents a significant milestone towards building a long-term relationship between Goldcorp and TH and is a critical step towards delivering economic opportunities for TH and its citizens through the development of the Coffee gold project in the Yukon,” the company says. Goldcorp describes the Coffee gold project is a high-grade potential open pit and heap leach development that has potential to grow into a large district-scale operation. Production is expected in 2021.

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

 

Hecla Mining Agrees To Settlement Of Labor Charge

Tuesday May 1, 2018 08:27

Hecla Mining Co. (NYSE: HL) says it has reached an agreement – without any admission of fault, back payments or penalties – with the National Labor Relations Board to settle the unfair labor practice charge filed by the United Steelworkers in March 2017 over a strike at the Lucky Friday Mine in Idaho. “This action does not resolve the key differences in the ongoing labor dispute, nor put the two sides closer to a contract,” Hecla says. As part of the settlement, Hecla says it has rescinded the terms of its last, best and final offer implemented in March 2017. Since then, Hecla and United Steelworkers’ representatives have met over 20 times, officials said. A revised final offer was presented to the United Steelworkers’ representatives in December and remains on the table. Hecla said its production guidance remains unchanged, with no material production expected from the Lucky Friday Mine in 2018.

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

 

Argonaut 1Q Adjusted Profit Rises From Year Ago

Tuesday May 1, 2018 08:27

Argonaut Gold Inc. (TSX: AR) says its adjusted first-quarter profit rose as output and the gold price climbed but costs fell. First-quarter net income was $12.2 million, or 7 cents per basic, in line with $12 million, also 7 cents, in the first quarter of 2017. However, excluding special items, the rise in adjusted income was more pronounced, as this climbed to $7.9 million, or 4 cents, from $4.9 million, or 3 cents, a year ago. Argonaut says this was mainly due to the recognition of previously unrecognized Mexican deferred tax assets in the first quarter of 2017, which reduced deferred tax expense. The company produced 40,853 gold-equivalent ounces at an all-in sustaining cost of $781 per gold ounce, compared to 37,707 ounces at AISC of $870 a year ago. The average realized gold price rose to $1,330 from $1,228. “We made significant investments during 2017, and 2018 is about harvesting those investments and adding cash to our balance sheet through strong free cash flow,” says Pete Dougherty, president and chief executive officer. “During the first quarter, we added $7.2 million in net cash to our balance sheet.”

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

 

McEwen Mining: Black Fox Exploration Results ‘Encouraging’

Tuesday May 1, 2018 08:27

McEwen Mining Inc.(NYSE, TSX: MUX)says exploration results from its Black Fox Complex in Ontario are “encouraging.” The company says it has spent approximately 30% of its $15 million 2018 exploration budget at Black Fox so far, with 42,400 meters of drilling completed in the first quarter. The company says some of the best intercepts encountered were 639 grams of gold over 0.55 meter in a hole at Gibson Southwest, 5.24 g/t gold over 11.96 meters in a hole at Stock East, 4.50 g/t gold over 3.79 meters in a hole at Black Fox, and 23.88 g/t of gold-equivalent over 6.47 meters from a hole at Tamarack.

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

 

Guyana Goldfields Profitable In 1Q; Output Dips

Tuesday May 1, 2018 08:27

Guyana Goldfields Inc. (TSX: GUY) reports first-quarter net earnings of $8.4 million, or a nickel per share, down slightly from $9.9 million, or 6 cents, in the same period a year ago. Gold production fell to 38,500 ounces from 40,900 in the first quarter of 2017. The company reports record mill throughput, averaging 6,720 tonnes per day for the quarter, of which 100% was hard rock. All-in sustaining costs were $934 an ounce. The average realized gold price rose to $1,333 from $1,227. The company says it completed the first phase of a mill expansion on time and under budget, and this will allow for increased mill throughputs and recoveries going forward. "With increased throughput and higher grades expected in the second half of the year, we are confident in our ability to meet 2018 guidance,” says Scott Caldwell, president and chief executive officer. The company maintained full-year guidance of 190,000 to 210,000 ounces. “We look forward to initiating the development of the underground in the fourth quarter of this year in our effort to accelerate selective mining of higher grade stopes starting in 2019. We have begun the bidding process to bring on the required underground mining technical expertise, as well as initiated the movement of previously purchased underground mining equipment to site," Caldwell adds.

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

 

Alacer Gold Lists First-Quarter Profit

Tuesday May 1, 2018 08:27

Alacer Gold Corp. (TSX: ASR; ASX: AQG), which has an 80% interest in the  Çöpler Gold Mine in Turkey, reports a first-quarter net profit of $26.7 million, or 9 cents per share. Gold production was 37,875 ounces, and attributable output was 30,300 ounces. All-in sustaining costs were $737 an ounce. During the quarter, Alacer hedged an additional 20,000 ounces of gold at an average price of $1,350, with settlements between July and December, to secure the gold price on oxide gold production during the ramp-up of the sulfide project. “Production and costs are tracking in line with guidance as we progressively transition from oxide to predominately sulfide ore in the second half of the year,” says Rod Antal, president and chief executive officer.

 

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.

Precious Metal Charts

Follow Kitco News