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Primero: Mexican Authorities Approve Acquisition By First Majestic

Kitco News

Primero Mining Corp. (TSX: P) reports that the Comisión Federal de Competencia Económica has provided antitrust clearance for a planned merger in which First Majestic Silver Corp. (TSX: FR; NYSE: AG) will acquire Primero. Officials say this was the final government agency approval required before closing. Primero says closing of the deal is expected on Thursday. The companies announced the all-stock merger in early January, in which First Majestic will gain Primero’s San Dimas silver-gold mine in Mexico.

By Allen Sykora of Kitco News;


SEMAFO Reports 1Q Net Loss; Gold Output Eases

Wednesday May 9, 2018 08:53

SEMAFO Inc. (TSX, OMX: SMF) reports a bigger net loss in the first quarter as production eased from a year ago due to the content of the ore. The net loss for the January-March period was put at $4.7 million, or a penny per share, compared to net loss of $2.7 million, also a penny, for the same period in 2017. Gold production fell to 45,500 ounces from 55,400 in the year-ago quarter. The company says the number of tones processed declined by 11% due to the hardness of the ore. There was also a decline in head grade, as reflected in the mine plan.  In the first quarter of 2018, the all-in sustaining cost reached $1,083 per ounce sold, compared to $892 per ounce sold in the same period in 2017. This is due to a lower head grade and higher cash operating cost per tonne, the latter being mainly caused by negative foreign-exchange fluctuations, the company says. SEMAFO reports that as of the end of April, commissioning of the Boungou mine was 57% complete. The company says it remains on line for a first gold pour early in the third quarter.

By Allen Sykora of Kitco News;


Premier Gold Mines Reports 1Q Loss

Wednesday May 9, 2018 08:53

Premier Gold Mines Ltd. (TSX: PG) reports a net loss for the first quarter as output fell from a year ago. The company produced 30,550 ounces of gold and 59,826 ounces of silver, compared to 50,979 ounces of gold and 98,382 ounces of silver during the first quarter of 2017. Premier lists $39.2 million in revenue and income from mining operations of $9.6 million. Officials say this is down from a year ago primarily due to decreased production from South Arturo, where mining of the phase-two pit was completed in 2017. “Programs to support the company’s longer-term objective of increased annual production over the next three to five years resulted in $6.5 million in exploration expense, that when factored with the reduction in mine operating income during the period, contributed to a net loss of $2 million,” the company says in its earnings statement. The company had a profit of $5.1 million in the same quarter of 2017. Total capital spending was $5.3 million. Ewan Downie, president and chief executive officer, says the company expects to “meet or beat” 2018 guidance. He adds: “Our continued strong cash position will fund the near-term development of three additional deposits from within our project portfolio, including the construction of two new mining operations at the South Arturo [joint venture with Barrick Gold Corp.] in Nevada.” Premier’s production guidance for 2018 is 85,000 to 95,000 ounces of gold.

By Allen Sykora of Kitco News;


Torex Gold Resources Posts Profit In First Quarter

Wednesday May 9, 2018 08:53

Torex Gold Resources Inc. (TSX: TXG) reports a profit for the first quarter, even though operations were hampered for months by a blockade of the ELG complex that has finally ended. Net income was put at $10.2 million, or 12 cents per share, while adjusted earnings came in at $6.6 million, or 8 cents. The company produced 67,167 gold ounces in dore and an additional 8,887 ounces in carbon fines.

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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