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Franco-Nevada 4Q Adjusted Profit Below Consensus Estimate

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Franco-Nevada (NYSE: FNV; TSX: FNV) reports fourth-quarter adjusted net income of $44.7 million, or 24 cents a share, compared to $52.1 million, or 28 cents, in the year-ago period. The quarterly result was below consensus analyst expectations of 26 cents, according to Credit Suisse and BMO Capital Markets. Meanwhile, Franco-Nevada lists a net loss during the period of $31.3 million, or 17 cents, reflecting impairment charges of $75.4 million on Sudbury assets. Gold-equivalent ounces sold totaled 104,877, down from 119,839 in the same quarter a year earlier. Franco-Nevada also has energy assets. For full-year 2018, the company lists adjusted net income of $217 million, or $1.17 per share, up from $198.3 million, or $1.08, in 2017. Net income last year was $139 million, or 75 cents. Franco-Nevada says it sold 447,902 gold-equivalent ounces during the year, down from 497,745 in 2017. “Franco-Nevada’s largest investment, Cobre Panama, has now begun milling ore. Along with improved production from a number of our key assets, we expect very good growth in our gold-equivalent ounces over the next five years. We are also seeing an increasing number of gold investment opportunities and have already added several smaller gold royalties this year,” says David Harquail, chief executive officer. “Last year, our U.S. energy royalties substantially exceeded our expectations. We expect these assets will continue to grow over the next five years.” For 2019, Franco-Nevada says it expects royalty and stream production to total 465,000 to 500,000 gold-equivalent ounces from mining assets and revenue of $70 million to $85 million from energy assets.

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

 

Iamgold Reducing Workforce At Westwood Mine

Wednesday March 20, 2019 08:40

Iamgold Corp. (TSX: IMG; NYSE: IAG) says its workforce at its Westwood Gold Mine in Quebec will be reduced by 32%. The company cites both planned reductions due to the stage of mine development as well as realignment reductions tied to previously announced production guidance. Westwood guidance for 2019 is 100,000 to 120,000 ounces. Iamgold adds that the company is developing a revised life-of-mine plan for Westwood and expects to provide an update in the fourth quarter. “We sincerely regret that our valued colleagues are leaving us and we are providing redeployment assistance," says Steve Letwin, president and chief executive officer. “We concluded that this difficult decision had to be made in conjunction with planned reductions after assessing the balance of production levels and costs. We remain focused on developing a long-term plan for Westwood that is both safe and profitable."

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

 

Endeavour Mining Announces First Gold Pour At Ity CIL project

Wednesday March 20, 2019 08:40

Endeavour Mining Corp. (TSX: EDV) reports the first gold pour from the Ity CIL project in Côte d'Ivoire took place early in the week, ahead of schedule and under budget. The first pour yielded approximately 1,800 ounces of gold. The company says it expects to declare commercial production early in the second quarter, with performance trial testing to start soon. Endeavour says the crushing, milling and CIL circuits have attained a stable nameplate capacity of 4 million tonnes per annum. “This first gold pour and the remarkably quick ramp-up period is a transformational event for Endeavour as the Ity CIL project will quickly contribute to…cash-generation potential,” says Sébastien de Montessus, president and chief executive officer. “Given its current 15-year mine life and strong exploration potential, our ability to increase the plant size by 1Mtpa to 5Mpta for minimal additional capex represents a very compelling investment and is in line with our focus on capital allocation efficiency and return on capital employed criteria.” With this upgrade, the CEO adds, Ity has the potential to produce some 300,000 ounces of gold annually at a low all-in sustaining cost.

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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