Roxgold triples net income in Q1 2021 on strong production and higher gold prices
(Kitco News) - Roxgold (TSX: ROXG) (OTCQX: ROGFF) today reported that it has produced 35,308 ounces of gold at its Yaramoko mine (Burkina Faso) in Q1 2021 at an average grade of 8.0 grams per tonne, a 9% increase compared to 32,380 ounces at 8.7 grams per tonne in Q1 2020.
During the quarter ended March 31, 2021, the company's revenues totalled $60.6 million (2020: $48.0 million). During the quarter, the company achieved total cash cost per ounce sold of $677 and a mine operating margin of $1,108 per ounce sold.
The company’s net income was $5.6 million in Q1 2021 compared to net income of $1.9 million in Q1 2020. The company’s EBITDA was $24.5 million for the three-month period ended March 31, 2021 compared to $17.5 million in the comparative 2020 period.
The company said that net income was higher compared to Q1 2020 primarily as a result of higher average realized gold sales price and higher gold ounces sold, offset by higher mining expenses due higher tonnes processed and higher depreciation.
President and CEO John Dorward commented, “Yaramoko continues to be the cashflow engine of the company, allowing for high return reinvestment into organic growth opportunities. The proposed combination with Fortuna Silver is a natural next step for Roxgold and our shareholders, creating a low-cost global intermediate precious metals producer with significant free cash flow generation over the coming years, increased scale and diversification, a very attractive precious metals growth pipeline, increased liquidity and a lower cost of capital.”
Roxgold is a Canadian-based gold mining company with assets located in West Africa. The company owns and operates the high-grade Yaramoko gold mine located on the Houndé greenstone belt in Burkina Faso and is advancing the development and exploration of the Séguéla gold project located in Côte d’Ivoire.