Superior Gold reports lower production in Australia in Q1 due to the planned mill shutdown, maintains 2022 guidance
(Kitco News) - Superior Gold (TSXV: SGI) reported today that its Plutonic Gold Operations in Western Australia produced 16,747 ounces of gold in Q1 2022, a 5% decrease over the comparative quarter of 2021 due to the planned 15-day mill maintenance shutdown in the first quarter of 2022.
The company said it sold 15,823 ounces of gold at total cash costs of $1,558 per ounce sold, which was in line with management's expectations, and an increase of $172 per ounce sold or 12% in comparison to the first quarter of 2021.
All-in sustaining costs increased by $219 per ounce sold or 15% in comparison to the first quarter of 2021 to $1,729 per ounce sold, below the realized gold price of $1,910 per ounce, in line with management's expectations which included higher sustaining exploration and capital expenditures.
Importantly, the company noted it generated net cash from operations before working capital changes of $3.5 million for the three months ended March 31, 2022, adding that net income for the period was $1.4 million or $0.01 per share.
"The 15-day mill shutdown was a success and consistent with the company's strategy to invest in the fixed plant for long-term reliable and sustainable operations, providing the opportunity to increase throughput to the mill to its installed capacity. Looking ahead, we are continuing with our strategy, and we are targeting production and cash flow increases in the three subsequent quarters of 2022," commented President and CEO Chris Jordaan.
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The company added it continues to maintain its 2022 production guidance of 80,000-90,000 oz of gold, which was previously announced on January 17, 2022.
Superior Gold is a Canadian-based gold producer that owns 100% of the Plutonic Gold Operations located in Western Australia. Superior Gold indicated it is focused on expanding production at the Plutonic Gold Operations and building an intermediate gold producer.