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Hecla Mining Lists Record Gold, Silver, Lead Reserves

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Hecla Mining Co. (NYSE: HL) reports the highest silver, gold and lead reserves in its 128-year history. As of the end of 2018, the company lists record proven and probable gold reserves of 2.85 million ounces, an increase of 26% from 2017. Hecla lists record proven and probable silver reserves of 191 million ounces, an increase of 8%. Lead proven and probable reserves were a record 774,000 tons, an increase of 5%. Proven and probable zinc reserves of 931,730 tons represented an increase of 11% and were the highest since 2009. Price assumptions included $14.50 an ounce for silver, $1,200 an ounce for gold, $1.15 a pound for zinc and 90 cents a pound for lead. “We have achieved this while the industry has generally seen declining reserves and we were able to use among the most conservative price assumptions in the industry because of the strong economics of these deposits,” says Phillips S. Baker, Jr., president and chief executive officer. “It is particularly important that this growth comes at Greens Creek and Casa Berardi, who generate approximately 85% of our revenue and most of our operations’ free cash flow. These mines are Hecla’s best.”

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

 

New Gold Lists 4Q Adjusted Profit, 2019 Output Guidance

Thursday February 14, 2019 09"02

New Gold Inc. (TSX, NYSE American: NGD) reports an adjusted profit for the fourth quarter, although a net loss due to impairments, and expects 2019 production to be comparable to output from continuing operations last year. The company’s adjusted net earnings from continuing operations for the fourth quarter, excluding a couple of large impairment charges, were $22.7 million, or 4 cents per share, a turnaround from a 4-cents-per-share loss in the same period a year ago. There was an adjusted net loss for full-year 2018 from continuing operations of $10.6 million, or 2 cents. New Gold listed a net loss from continuing operations of $727.7 million, or $1.26 per share, in the fourth quarter. This included a $671.1 million ($1.16-per-share) impairment loss for the Rainy River Mine and the Blackwater project. The net loss from continuing operations for the year was $1.07 billion, or $1.85 per share, which includes a $953.2 million ($1.65 per share) after-tax impairment loss for Rainy River and Blackwater. New Gold lists fourth-quarter gold production from continuing operations of 97,428 ounces and from all operations of 110,559. The tallies for the year-ago period were 58,070 and 145,992 ounces, respectively. Full-year output for continuing operations more than doubled to 315,483 ounces from 149,009. The company also produced 20.8 million pounds of copper in the final three months of 2018 and 85.1 million for the full year. For 2019, the company lists guidance of 300,000 to 335,000 gold ounces and 75 million to 85 million copper ounces. “2019 is a pivotal year for the company as we reposition New Gold for long-term success. In 2019, we will work to establish Rainy River as a profitable and sustainable mining operation and renew our commitment to unlocking the potential of the New Afton C-zone,” says Renaud Adams, president and chief executive officer.

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

 

Asanko Lists Smaller 4Q Loss, Provides Output Guidance

Thursday February 14, 2019 09"02

Asanko Gold Inc. (TSX, NYSE American: AKG), which operates the Asanko Gold Mine in Ghana, reports a narrower loss in the fourth quarter and expects 2019 gold output to be in line with last year. The company lists a net loss of $0.9 million in the fourth quarter, compared to a net loss of $6.7 million in the year-ago period. The smaller loss was mainly due to deconsolidation of the company’s former Ghanaian subsidiaries and $1.1 million in service fees earned as operators of the joint venture. For full-year 2018, the company lists a net loss of $141.4 million, compared to income of $5.8 million in 2017. Asanko lists 2018 gold production of 223,152 ounces, which was up from 205,047 in 2017, with 2018 all-in sustaining costs of $1,072 an ounce, which the company says exceeds output guidance and was within the lower end of cost guidance. “Looking to the year ahead, the Asanko Gold Mine is targeting 225,000 to 245,000 ounces of gold production at AISC of $1,040-$1,060/oz for 2019,” says Peter Breese, president and chief executive officer. “Whilst forecasted AISC for 2019 are in line with 2018, they include a continued investment on the large Nkran pushback, which will be complete in 2019, resulting in high strip ratios for the year. In addition we have provided for two additional costs items that were not incurred for the full year in 2018. These are $35/oz for the recently introduced Esaase trucking operation and $25/oz to account for the new 5% non-refundable levy on goods and services that attract VAT in Ghana.”

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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