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Sandstorm Gold To Buy Back 10% Of Shares

Kitco News

Royalty company Sandstorm Gold Ltd. (NYSE American: SAND, TSX: SSL) announces that its board of directors has approved the purchase of up to 18.3 common shares by the end of 2019, subject to approval by the Toronto Stock Exchange. This would represent approximately 10% of Sandstorm’s current shares outstanding. The news comes one day after Sandstorm says net income fell to $2.1 million in the third quarter from $4.8 million in the same period a year ago, which the company says was due to certain non-recurring items, including a $3.4 million gain primarily resulting from the Bachelor Lake gold stream amendment. The decrease in net income was partially offset by a $0.7 million decrease in depletion expense and a $0.3 million reduction in the administrative costs. Revenue dipped to $17.3 million from $17.9 million a year ago mainly due to a 4% decrease in the average realized selling price of gold. Gold-equivalent production was steady at 14,314 ounces, compared to 14,293 a year ago. Based on existing royalties, Sandstorm says the number of gold-equivalent ounces sold is expected to be between 56,000 and 60,000 for 2018 and between 63,000 and 73,000 ounces in 2019. The company says it looks for gold-equivalent production of 140,000 ounces in 2023.

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

 

Leagold Mining Trims Production Guidance

Thursday November 15, 2018 09:02

Leagold Mining Corp. (TSX: LMC) reports a third-quarter profit but has trimmed production guidance for 2018. The company, which acquired Brio Gold Inc. in spring, lists net income of $14.9 million, or 5 cents per share, on production of 93,269 ounces of gold. However, the company says it is trimming guidance due to an unplanned temporary shutdown of the RDM mine due to a drought, and the Los Filos mine experiencing an extended recovery cycle on the heap leach pads. Guidance is now listed at 295,000 to 305,000 ounces, down from the previous range of between 325,000 and 350,000 ounces. This takes into account the restart of RDM in late November with a two-week production ramp-up. Leagold looks for full-year all-in sustaining costs to be similar to the nine months ended Sept. 30 of $979 per ounce. “Among our mines, Fazenda and Pilar both performed as expected in the quarter. Los Filos production was below expectations in Q3, mainly due to the significant increase in contained gold placed on the pads that has caused recovery delays,” says Neil Woodyer, chief executive officer. “With Los Filos production set to increase in the near term, the restart of RDM now scheduled for Nov. 20, and the expected cost savings from optimizations in Brazil, we are looking forward to increased production and cash flow in 2019.”

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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