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Tahoe Reports 3Q Loss, $170 Million Impairment For Escobal Mine

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Tahoe Resources Inc. (TSX: THO, NYSE: TAHO) lists a third-quarter loss as results continue to be hurt by suspension of operations at the giant Escobal silver mine in Guatemala.  The Supreme Court shut down the mine last year over a dispute on whether the Ministry of Energy and Mines properly consulted surrounding indigenous communities on the project. Tahoe’s July-September net loss was $190 million, or 61 cents a share, compared to a loss of $8.4 million, or 3 cents, in the same quarter a year ago. The July-September result was in large part due to a $170 non-cash impairment of the Escobal mine, as well as costs of the continuing mine suspension, Tahoe reports. Excluding the impairment, Tahoe lists an adjusted loss of $19.4 million, or 6 cents per share, compared to a loss of $7.2 million, or 2 cents, in the same period a year ago. The company reports care-and-maintenance costs of $6.6 million for the Escobal mine, although these are forecast to dip below $5 million per quarter in the future. While the mine remains shuttered, Tahoe reports that the Constitutional Court has provided a resolution for a process that can lead to restart of the mine, although there is no timeline. Tahoe reports no silver production in the third quarter, while gold output eased to 91,000 ounces from 109,000 in the same period a year ago. All-in sustaining costs were $1,263 per gold ounce. "The company remains on track for its full-year 2018 guidance near the low end of production and the high end of costs,” says Jim Voorhees, president and chief executive officer. “During the third quarter, La Arena production was impacted by stacking at the highest levels of the leach pad, which delayed gold production. In October, La Arena solution grades started improving and the mine achieved its second-highest production month for the year, contributing to the expected production rebound in the fourth quarter.”

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

 

Endeavour Lists 3Q Adjusted Loss; Output Rises Sharply

Wednesday November 07, 2018 08:51

Endeavour Mining (TSX: EDV) reports sharply higher year-on-year revenue and output in the third quarter, although the company ended with an adjusted loss. Net earnings were 15 million, or 14 cents a share, a turnaround from a loss of $15 million, or 15 cents, in the same period a year ago. However, after special factors, Endeavour lists an adjusted loss of $1 million, or a penny, compared to an adjusted profit of 2 million, or 3 cents, a year ago. Revenues jumped to $156 million from $95 million, with gold production surging to 139,000 ounces from 79,000. “Production across our portfolio is expected to increase in Q4 2018 due to the end of the rainy season in West Africa,” says SĂ©bastien de Montessus, president and chief executive officer. “Group production is therefore on track to meet the top end of our guidance of between 555-590koz, while we expect all-in sustaining costs to achieve the lower end of guidance of $760-810/oz.” The CEO says Endeavour has made progress on strategic initiatives and will “enter 2019 with momentum from the commissioning of the Ity CIL project, which is expected to be our next flagship mine. The first gold pour is now anticipated to occur in early Q2 as the project is tracking two months ahead of schedule.”

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

 

SEMAFO Third-Quarter Profit Declines From Year Ago

Wednesday November 07, 2018 08:51

SEMAFO Inc. (TSX, OMX: SMF) reports net income of $0.5 million, or nil per share, compared to $12.2 million, or 4 cents, for the same period in 2017. Consolidated gold production was 58,200 ounces (70,200 ounces when including 12,000 ounces of pre-commercial production from Boungou), compared to 53,900 ounces for the same period in 2017. Commercial production was declared at Boungou on Sept. 1. The company reiterates its 2018 production outlook of between 235,000 and 265,000 ounces of gold at all-in sustaining costs of between $900 and $940 per ounce.

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

 

Premier Gold Mines Lists 3Q Loss On Lower Output

Wednesday November 07, 2018 08:51

Premier Gold Mines Ltd. (TSX: PG) reports a net loss in the third quarter on lower gold production. The loss was $1.8 million, or a penny per share, compared to a profit of $2.3 million, or a penny, a year ago.  Revenue of $27.3 million was down sharply from $50 in the year-ago period, which the company blames on decreased production from South Arturo, where mining of the Phase 2 pit was completed in 2017 and adjustments to stope designs in a new mining zone at Mercedes. This redesign at Mercedes resulted in a development-intensive first half of the year and increased unit operating costs so far in 2018, Premier says. However, with adjustments complete, production at Mercedes will be favorably weighted to the second half of 2018, Premier says. Third-quarter output included 20,100 ounces of gold and 89,512 ounces of silver, compared to 26,677 ounces of gold and 85,431 ounces of silver a year ago. Premier maintains full-year consolidated gold production guidance of 90,000 to 100,000 ounces, with an increase in production from South Arturo and a decrease from Mercedes.

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

 

Osisko Reports Dip In 3Q Adjusted Profit

Wednesday November 07, 2018 08:51

Osisko Gold Royalties Ltd. (TSX, NYSE: OR) reports adjusted third-quarter net income of $5.7 million, or 4 cents per share, down from $8 million, or 6 cents, in the same period of 2017. The company lists 20,006 gold-equivalent ounces and maintained its forecast for 2018 gold-equivalent ounces to be in a range of 77,500 to 82,500. Osisko declared a quarterly dividend of 5 cents per common share payable on Jan. 15 to shareholders of record as of Dec. 31.

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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