Off The Wire
Roxgold: 1Q output leaves company on pace for 2020 guidance
(Kitco News) - Roxgold Inc.’s (TSX: ROXG) preliminary first-quarter production at the Yaramoko mine complex in Burkina Faso leaves the company on pace to meet its 2020 production guidance, the company said Wednesday.
Yaramoko produced 32,380 ounces of gold at an average grade of 8.7 grams per metric ton during the January-March period, Roxgold said. The company reported quarterly plant throughput of 1,383 tons per day, exceeding nameplate capacity.
The company reaffirmed its annual gold production guidance of between 120,000 and 130,000 ounces, assuming that existing operating conditions are maintained. Mine production has not been impacted by the COVID-19 pandemic that has resulted in temporary mine closures in other parts of the world, Roxgold said.
“Yaramoko continues to operate well with a strong quarter to start the year with tonnage and grades ahead of expectations,” said John Dorward, president and chief executive officer.
He said the company is confident that it can “effectively navigate and respond” to the rapidly evolving pandemic.
“The Yaramoko operation has bolstered its safeguards and risk-mitigation efforts to limit the impacts of the virus, while the company has strengthened its liquidity position in order to minimize the exposure to operating and financial risks in the market,” he said.
The company put its liquidity position at approximately $50 million at the end of the first quarter, saying it drew down the remaining $15 million of a revolving credit facility to maximize cash reserves and reduce liquidity risk amid uncertain financial market conditions.
In addition to operating the Yaramoko complex, Roxgold is advancing the development and exploration of the Séguéla gold project located in Côte d’Ivoire.