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Fiore boosts net income on higher gold prices and lower costs

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(Kitco News) - Fiore Gold (TSXV: F) announced today that the company produced 10,915 ounces of gold at its Pan mine in Nevada during the quarter ended March 31, 2021 (the company’s Q2 2021 fiscal quarter), a 19% increase compared to Q1 2021 as heap leach pH and alkalinity levels improved during the quarter.

Gold sales were 10,884 ounces at an average realized price of $1,770 per ounce. Q2 Pan mine AISC per ounce sold of $1,020 and Fiore consolidated AISC of $1,186.

The company recorded quarterly revenues of $19.3 million with mine operating income of $7.1 million. Operating cash flow was $5.2 million and consolidated operating cash flow was $3.6 million. Net income was $4.5 million and $0.05 net earnings per share, a 56% increase compared to March quarter 2020 ($2.9 million), putting Fiore Gold at or above $0.05 net earnings per share for four consecutive quarters.

The company said that relative to the prior year quarter, Fiore demonstrated improvements on all profitability measures. This was primarily due to higher realized gold prices and lower operating costs as the stripping ratio decreased.

Fiore added that the Pan heap leach pad expansion project is progressing well with first ore expected to be placed on the new portion of the pad in fiscal Q3.

The company’s corporate strategy is to grow Fiore Gold into a 150,000 ounce per year gold producer focused on stable jurisdictions. To achieve this, Fiore intends to: grow gold production at the Pan mine while also growing the reserve and resource base; advance exploration and development of the nearby Gold Rock project; and acquire additional production or near-production assets to complement its existing operations.

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