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Guyana Goldfields Posts 3Q Loss, Trims Output Guidance

Kitco News

Guyana Goldfields Inc. (TSX: GUY) reports a net loss for the third quarter and downgraded its full-year production guidance, explaining that grades have not rebounded as quickly as anticipated in the fourth quarter. The net loss for the third quarter was $2.2 million, or a penny per share, which officials says was influenced by increased deferred tax expense and management restructuring charges. In the same quarter a year ago, the company listed a profit of $6.1 million, or 4 cents a share. The company reports improved mining rates, but lower-than-expected head grades. Production guidance for 2018 was revised downward to 150,000 to 155,000 from the previous range of 175,000 to 185,000 ounces. All-in sustaining costs are expected to be $1,025 -$1,050 per ounce. "We acknowledge and share the disappointment surrounding the revised production guidance and are actively positioning ourselves to address the grade variability,” says Scott A. Caldwell, president and chief executive officer. “We have engaged an independent engineer and expect to deliver a full report in the first quarter of 2019. On a positive note, our average mining rate has shown a further improvement of 17% from the third quarter and we are achieving targeted levels of 70,000 tpd [tones per day]. In addition, the mill continues to perform exceedingly well with throughput and recovery rates delivering continuously above designed rates.”

By Allen Sykora of Kitco News;


Aloro Completes Private Placement; Agnico Eagle Lead Subscriber

Tuesday October 30, 2018 08:58

Aloro Mining Corp. (TSXV: AORO) announces that it has closed a non-brokered private placement of 8 million common shares at 10 Canadian cents each, with Agnico Eagle Mines Ltd. the lead subscriber after purchasing 4 million shares. Agnico now owns 8.7% of the Aloro’s shares. Further, Agnico was granted a right to participate in future equity financings to either maintain its current ownership increase it to 9.9%. Thomas A. Doyle, president and chief executive officer of Aloro, says “having Agnico as a strategic investor, particularly given its technical knowledge in an area that is geologically complex, will be a great advantage…especially during the exploration stage.” Proceeds from the private placement will be used for an exploration program at the Los Venados project.

By Allen Sykora of Kitco News;


Alacer: Sulfide Plant Construction Finished; Net Loss In 3Q

Tuesday October 30, 2018 08:58

Alacer Gold Corp. (TSX: ASR; ASX: AQG) reports the company’s sulfide plant construction is complete, with a staged start-up under way.  Alacer lists a net loss for the third quarter of $27.1 million, compared to a year-ago profit of $29.1 million, with the company saying the turnaround was due to a $37.7 million foreign-exchange loss due to the weaker Turkish lira ($30.1 million attributable) and a $39 million lower income tax  benefit ($31.2 million attributable).  The per-share loss was 9 cents, compared to a 10-cent profit a year ago. The Çöpler Mine in Turkey produced 26,160 ounces during the quarter, down from 39,312 in the same period a year ago, at all-in sustaining costs of $626 per oxide ounce that were comparable to $623 a year ago. The attributable share to Alacer, with its 80% ownership, was 20,928 ounces. The lower production was the result of an increase in the heap-leach inventory and timing of gold pours, Alacer says. Alacer reports that the sulfide plant construction is on track to be 11% under budget. “This year represents a significant step change for Alacer as we bring the sulfide plant online in a staged and disciplined manner,” says Rod Antal, president and chief executive officer. “During the quarter, we were successful in completing construction of the sulfide plant and processing oxide ore. Currently, we are preparing to start the first autoclave, which is now being acid cured and is heating up to begin processing sulfide ore this week….We continue to have success across the business with the start of mining at Çakmaktepe in September and growing confidence in the potential to add future production from the Çöpler District.” Year-to-date production is on target to meet the lower end of full-year consolidated production guidance of 160,000 to 230,000 ounces, Alacer reports.

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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