Coeur Mining Agrees To Acquire Northern Empire Resources
Coeur Mining,Inc. (NYSE: CDE) says it has agreed to acquire all shares in Northern EmpireResources Corp. (TSXV: NM) that Coeur does not already own. The all-stock dealwas valued at $90 million and represents a premium to Northern Empire’s 20-daytrailing volume-weighted average share price. Northern Empire’s principal assetis the Sterling gold project located in Nevada. Coeur says it will aim for aquick restart of the Sterling Mine while aggressively exploring the Crown Blockand other targets. “The transaction, which provides a unique opportunity forCoeur to leverage its operational expertise in Nevada, a leading miningjurisdiction, and add expected near-term, high-margin production and cash flowwith minimal upfront capital, together with significant exploration potential,satisfies all of our acquisition criteria and is accretive on all key financialand operational metrics,” says Mitchell Krebs, president and chief executiveofficer of Coeur. The transaction will be subject to two-thirds approval byNorthern Empire shareholders at a special meeting planned for September, Coeursays. The company adds that both boards of directors have unanimously approvedthe merger.
By Allen Sykoraof Kitco News; asykora@kitco.com
Sandstorm Gold Reports 2Q Profit On Higher Sales
Thursday August 2, 2018 09:46
Royalty company Sandstorm Gold Ltd. (NYSEAmerican: SAND; TSX: SSL) movedback in the black during the second quarter. The company lists a net profit of$0.7 million, compared to a year-ago net loss of $1.9 million. Sandstorm saysit sold 14,465 gold-equivalent ounces, compared to 12,750 a year ago.
By Allen Sykoraof Kitco News; asykora@kitco.com
Teranga Gold Reports Record Production,Increases Guidance
Thursday August 2, 2018 09:17
Teranga Gold Corp. (TSX: TGZ) upped 2018production guidance after record output in the second quarter. The companychurned out 65,381 ounces in the April-June period, up from 57,557 in thesecond quarter of 2017. Teranga now lists full-year guidance of “at least230,000 ounces” compared to the previous expectation of 210,000 to 225,000ounces. Teranga reports anadjusted profit of $6.2 million for the second quarter, or 6 cents per share,compared to $9.7 million, or 9 cents, a year ago. Net income rose to $11.6million, or 11 cents, from $9.6 million, or 9 cents. “By the end of 2019, we expect to increase our annualized goldproduction by about 50% to between 300,000 and 350,000 ounces, diversifying ourproduction base and adding significant scale with a second long-life mine -Wahgnion,” says Richard Young, president and chief executiveofficer. “Additionally, we are prioritizing Golden Hillwithin our exploration portfolio given it has the potential to be our thirdmine and move us into the mid-tier producer category.”
By Allen Sykoraof Kitco News; asykora@kitco.com
AlamosAdjusted Profit Lower Than Year Ago
Thursday August 2, 2018 09:17
Alamos GoldInc. (TSX, AGI) lists adjusted net earnings of $4.9 million, or a penny pershare, for the second quarter. This reflects adjustments for unrealizedforeign-exchange losses recorded within both deferred taxes and foreignexchange of $15.3 million, as well as other one-time items, Alamos says. Theadjusted profit is down from $9.8 million a year ago. The company lists a netloss of $8.9 million, a turnaround from a $2.4 million profit a year ago. Theloss was due largely to foreign-exchange movements, Alamos says. Cash costsrose to $832 an ounce from $784, which Alamos blames on lower grades anddowntime at Young-Davidson. Alamos produced 126,500 ounces of gold, 19% higherthan the second quarter of 2017. “With near-record production in the secondquarter, we came in slightly ahead of expectations and remain well positionedto achieve full-year guidance,” says John A. McCluskey, president and chiefexecutive officer. “This reflected another strong outperformance from Mulatosand Island Gold, with production guidance for both mines increased for thesecond consecutive quarter.”
By Allen Sykoraof Kitco News; asykora@kitco.com
Asanko Gold 2QAdjusted Net Profit Rises
Thursday August 2, 2018 09:17
AsankoGold Inc. (TSX, NYSE American: AKG) reports a rise in its second-quarteradjusted profit and says output for the first half of 2018 was above guidance. The producer lists a netloss of $142.3 million, compared to net income of $0.6 million in the year-agoperiod. The red bottom line was due to a $144.6 million loss onreclassification of Ghanaian subsidiaries to net assets held for sale,resulting from the Gold Fields joint-venture transaction, Asanko says.Excluding special items, adjusted net income was $2.3 million, or a penny pershare, up from $0.7 million, or zero cents, in the second quarter of 2017. “The mine’s solid operational performancefor the quarter, predominantly the mill’s fantastic performance and Nkranresuming steady-state operations, enabled us to beat the top end of ourguidance for the first half of 2018, producing 101,731 ounces at [all-insustaining costs] of $1,145/oz,” says PeterBreese, president and chief executive officer. “We are wellpositioned to meet our H2 2018 and full-year guidance.” The company saysApril-June gold production of 53,501ounces was up from 46,017 in the same quarter a year ago.
By Allen Sykoraof Kitco News; asykora@kitco.com
Endeavour Silver ReportsNet Loss, Higher Output
Thursday August 2, 2018 09:17
EndeavourSilver Corp. (NYSE: EXK; TSX: EDR) lists a second-quarter loss due to factorssuch as foreign exchange, but reports higher production than in the same perioda year ago. Endeavour’s net loss was $5.7 million, or 4 cents pershare, compared to $16,000 loss in the second quarter of 2017, saying this wasprimarily due to higher depreciation and depletion charges and aforeign-exchange loss. Revenue increased 19% to $38.8 million. Silverproduction increased 19% to 1,355,895 ounces, while gold production increased5% to 13,674 ounces, resulting in silver-equivalent output of 2.4 million.
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.