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Superior Gold achieves revised production guidance in Australia

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(Kitco News) - Superior Gold (TSXV: SGI) announced Tuesday that its Plutonic gold operations, located in Western Australia, produced and sold 63,065 and 63,732 ounces of gold, respectively, for the twelve months ended December 31, 2020. The company achieved full-year 2020 revised production guidance.

In comparison, 83,035 and 83,241 ounces of gold were produced and sold, respectively, for the twelve months ended December 31, 2019. Total cash costs of $1,436/ounce sold and AISC of $1,564/ounce were below the realized gold price of $1,665/ounce for the twelve-month period ending December 31, 2020.  

The company said that total cash costs and AISC increased over the prior period primarily due to an increase in the contribution of lower grade legacy stockpiles that replaced higher grade tonnages milled from Hermes for the period (the company ceased mining operations at Hermes in May 2019), a decrease in underground grade and the strengthening of the Australian dollar.

Superior Gold added that the company exited the year with a strong financial position of $17.3 million in cash and cash equivalents after the purchase of the 2% net smelter royalty, delivery into hedges as part of the Auramet gold loan, and capital expenditures necessary to improve performance and accelerate underground development.

Superior Gold is a Canadian based gold producer that owns 100% of the Plutonic gold operations, located in Western Australia. The Plutonic gold operations include the Plutonic underground gold mine and central mill, numerous open pit projects including the Plutonic Main Pit push-back project, the Hermes open pit projects and an interest in the Bryah Basin joint venture.

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