Harte Gold ups mine operating cash flow twelvefold in 2020
(Kitco News) - Harte Gold (TSX: HRT / OTC: HRTFF / Frankfurt: H4O) reported that the company's gold production of 25,649 ounces in 2020 exceeded the upper end of the company's revised guidance of 24,000 ounces.
The company's revenue was $53.5 million from 23,345 ounces sold for 2020 ($49.8 million and 28,114 ounces respectively, in 2019). Mine operating cash flow was $18.0 million in 2020 ($1.5 million in 2019). EBITDA was negative $0.6 million for 2020 (negative $9.6 million in 2019).
President and CEO Frazer Bourchier commented, "I am pleased with the team's operational performance in the fourth quarter which continues to be one more progressive step in achieving our operational strategy. We achieved record quarterly gold production from the Sugar Zone mine and will continue to focus on reducing our unit cash costs and producing a growing margin cash flow ounce production profile."
"Harte Gold is well-positioned to thrive in 2021. The recently completed $24.8 million strategic investment from New Gold, in addition to the BNP proposal, will put Harte Gold in a considerably improved financial position with much enhanced liquidity to fund our operation through the next year. This includes the ramp-up of
production at the Sugar Zone from approximately 25,000 ounces of gold in 2020 to between 60,000 to 65,000 ounces in 2021, and an acceleration of our planned transformative expansion to 1,200 tonnes per day by Q1 2023," concluded Bourchier.
Harte Gold holds a 100% interest in the Sugar Zone mine located in White River, Canada. The Sugar Zone mine entered commercial production in 2019. Production guidance is 60,000 to 65,000 oz Au for 2021. The company has further potential through exploration at the Sugar Zone property, which encompasses 81,287 hectares covering a significant greenstone belt.