Newmont Gold Reserves Steady; Additions Replace Depletion
Newmont Mining Corp. (NYSE: NEM) reports gold reserves of 68.5million ounces for 2017, unchanged from 2016 as additions and revisions fullyreplaced depletion. The company says it added 6.4 million ounces of goldreserves, including 4.4 million through exploration and projects and 2 millionthrough revisions and acquisitions. Newmont has reported 5.3 million ounces ofproduction in 2017, resulting in 6.4 million contained ounces of reservedepletion. Meanwhile, gold resources increased to 48.2 million ounces, up 1%from the prior year and offsetting the conversion of resource ounces toreserves. The company also says copper reserves rose by 7% to 1.2 milliontonnes, while copper resources were largely unchanged at 2.3 million tonnes.Newmont’s says exploration expenditures are expected to increase toapproximately $230 million in 2018, with about 70% allocated to “just-in-timedelivery of the highest-margin reserves and resources and the remaining 30percent allocated to greenfields, brownfields and innovation programs.”
By Allen Sykoraof Kitco News; asykora@kitco.com
Kirkland Lake4Q Profit Rises On Record Gold Production
Wednesday February 21, 2018 09:08
Kirkland LakeGold Ltd. (TSX, NYSE: KL) lists a higher profit and record output in the fourthquarter. Net earnings totaled $41 million, or 20 cents per share, animprovement from $3.1 million, or 2 cents, in the prior-year quarter. Adjustednet earnings from continuing operations were $71.2 million, or 34 cents, versus$22.8 million, or 16 cents, a year ago. Kirkland Lake lists record quarterlyproduction of 166,579 ounces, a 56% year-on-year increase and 20% higher thanin the third quarter. All-in sustaining costs averaged $816 an ounce, down from$900 in the fourth quarter of 2016. Meanwhile, for full-year 2017, the companylists a record 596,405 gold ounces produced, up 90% from 2016 and better thanimproved guidance of 580,000 to 595,000 ounces. AISC averaged $812 an ounce, inline with improved guidance of $800 to $825 and a 13% improvement from 2016.Full-year 2017 net earnings were $132.4 million, or 64 cents per share,compared to $42.1 million, or 35 cents, in 2016. Adjusted net earnings fromcontinuing operations in 2017 came in at $149.1 million, or 72 cents, a 120%increase from 2016. “Operationally, we improved our guidance multiple times andstill beat our target range for production and were well within the improvedguidance for operating cash cost and AISC per ounce sold,” says Tony Makuch,president and chief executive officer. “We also clearly demonstrated an abilityto generate cash flow, with free cash flow for the year totaling $178 million.In terms of organic growth, we increased production by 90% in 2017, 10% on apro-forma basis, even after placing three mines on care and maintenance. Wealso set the stage for continued year-over-year production growth, with ourlonger-term goal being to reach a million ounces of annual production fromexisting mines within five to seven years.”
By Allen Sykoraof Kitco News; asykora@kitco.com
New Gold Lists4Q Adjusted Profit, Record Gold Output
Wednesday February 21, 2018 08:51
New Gold Inc.(TSX: NGD; NYSE American: NGD) reports an adjusted profit in the fourth quarteras the company had record gold production. New Gold lists a fourth-quarter netloss of $195.6 million, or 34 cents per share, compared to a loss of $22.3million, or 4 cents, in the same period of 2016. The company lists a number ofspecial charges, including an impairment charge for Rainy River and a loss fromthe sale of Peak Mines. Excluding special items, the company lists an adjustedprofit of $32.5 million, or 6 cents per share, compared to a year-ago adjustedloss of $4.9 million, or a penny. New Gold reports record quarterly goldproduction of 154,530 ounces, to go with 28 million pounds of copper, withall-in sustaining costs of $771 per gold ounce. For full-year 2017, the companylists a net loss of $108 million, or 19 cents per share, compared to a 2016loss of $7 million, or a penny. Adjusted 2017 net earnings were of $49.3million, or 9 cents, compared to $14.6 million or 3 cents, in 2016. “Withproduction at the high end of guidance and costs below guidance, New Goldgenerated the highest annual cash flow in our company’s history,” says HannesPortmann, president and chief executive officer. Full-year gold production of430,949 ounces was at the high end of the guidance range of 380,000 to 430,000ounces, while copper production of 104 million pounds met guidance of 100million to 110 million. All-in sustaining costs of $727 per gold ounce werebelow previously lowered guidance of $760 to $800 per ounce. Rainy Riverachieved commercial production in mid-October, ahead of plan New Gold listsyear-end mineral reserves of 14.8 million ounces of gold, 0.9 billion pounds ofcopper and 77 million ounces of silver, excluding Peak Mines, which wasclassified as a “discontinued operation” since the sale is expected to close inthe first quarter.
By Allen Sykoraof Kitco News; asykora@kitco.com
Golden StarResources’ Profit Rises Along With Output
Wednesday February 21, 2018 08:51
Golden StarResources Ltd. (NYSE American: GSS; TSX: GSC; GSE: GSR) reportsa higher profit in the fourth quarter as output also rose. Netincome totaled $12.6 million,or 3 cents per share, compared to $3.4 million, or a penny, in the sameperiod of 2016. Adjusted net income was $15.2million, up from $0.1 million a year ago. GoldenStar lists a 34% year-on-year increase in fourth-quarter gold production to71,769 ounces, while all-in sustaining costs fell 16% to $1,002. For full-year 2017, net income totaled $38.8million, or a dime pershare, compared to a net loss of $39.6million, or 13 cents, for 2016. Adjusted net income for2017 was $46.1 million, up from $11.2 million. For the full year, the companylists a 38% increase in gold production to 267,565 ounces. "In 2017, GoldenStar ramped up two underground mines and achieved or outperformedour full-year guidance on all stated metrics,” says Sam Coetzer, president and chief executive officer. Thecompany’s 2018 guidance includes gold production of 230,000 to 255,000ounces at AISC of $850 to $950 per ounce.
By Allen SykoraFor Kitco News
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asykora@kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.