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Pan American Silver Completes Acquisition Of Tahoe Resources

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Pan American Silver Corp. (Nasdaq, TSX: PAAS) says it has completed the acquisition of Tahoe Resources Inc. and also increased its revolving credit facility. "The completion of the arrangement establishes the world's premier silver-mining company with an industry-leading portfolio of assets, a robust growth profile and attractive operating margins,” says Michael Steinmann, president and chief executive officer of Pan American Silver. “We are also now the largest publicly traded silver-mining company by free float, offering silver-mining investors enhanced scale and liquidity." Pan American also announces that it has increased its revolving credit facility by $200 million to $500 million, maturing on Feb. 1, 2023. Tahoe shareholders had the option of electing to receive either cash or 0.2403 of a Pan American share for each Tahoe share, with those not making a decision by the Jan. 3 deadline deemed to have chosen shares. Pan American reports that holders of 23,661,084 Tahoe shares made the cash election, while holders of 290,226,406 Tahoe shares will receive Pan American shares.

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

 

Kirkland Lake Gold Reports Record Quarterly Earnings

Friday February 22, 2019 10:01

Kirkland Lake Gold Ltd. (TSX, NYSE: KL; ASX: KLA) reports record quarterly earnings in the fourth quarter. The news came after an earlier announcement that the company upped its three-year production guidance, looking for gold output in a range of 920,000 to 1 million ounces for this year. Net earnings for the fourth quarter were $106.5 million, or 51 cents per share, an increase of 160% from the year-ago period, the company says. Adjusted earnings were put at $109.6 million, or 52 cents, which meant 73% year-on-year growth. Fourth-quarter production was a record 231,217 ounces, a 39% increase from the fourth quarter of 2017. All-in sustaining costs were $567 an ounce. For full-year 2018, Kirkland Lake listed net earnings of $273.9 million, or $1.30 per share, up from $132.4 million, or 64 cents, in 2017. Adjusted net earnings were $287.2 million, or $1.36, compared to $149.1 million, or 72 cents, in 2017. Full-year gold production of 723,701 ounces was a 21% increase from 2017 and topped guidance. Tony Makuch, president and chief executive officer, says Kirkland Lake Gold “clearly established itself as one of the most profitable companies in our industry” with production growth and low operating costs in 2018. “Very importantly, we can see that the best is yet come,” he says. “Based on recent revisions to our business plan, we expect to reach around 1 million ounces of annual gold production starting this year, with the value of each ounce increasing as unit costs show further improvement and margins increase.”

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

 

SSR Mining Lists 4Q Adjusted Profit, Sees Higher Output In 2019

Friday February 22, 2019 10:01

SSR Mining Inc. (Nasdaq, TSX: SSRM) reports a fourth-quarter adjusted profit of $4.4 million, or 4 cents per share, up from $2.9 million, or 2 cents, in the same quarter of 2017. However, the company lists a net loss of $2.5 million, or 3 cents per share, compared to net income of $16.9 million, or 14 cents in the fourth quarter of 2017. Revenue fell 4% year-on-year due to lower gold and silver prices, SSR says. The company also recognized a share-based compensation and payroll expense of $8.3 million due to a stronger share price performance, and also recognized an expense of $2.8 million for a premium paid for purchase of the shares of SilverCrest Metals Inc. SSR says it delivered gold-equivalent production of over 345,000 ounces in 2018.
“Looking ahead, 2019 consolidated gold production is forecast to grow to nearly 400,000 gold-equivalent ounces as all three operations increase output, including our newest mine, Chinchillas, which is ramping up to steady-state operations,” says Paul Benson, president and chief executive officer. “And by 2021, our production profile is expected to grow to 440,000 gold-equivalent ounces, not including the potential upside at Marigold or success from our brownfield exploration programs.” The full-year 2018 adjusted profit was $28 million, or 23 cents.

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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