Kirkland LakeGold Ltd. (TSX, NYSE: KL; ASX: KLA) reports highersecond-quarter earnings and record cash flow, plus the company lists improvedguidance for 2018. Production for the year is now targeted at over 635,000ounces, up from 620,000 previously. Cash operating cash costs are now expectedto average $400 to $425 per ounce sold, down from previous guidance of $425 to$450. Net earnings were put at $61.5 million, or 29 cents per share, a 78%increase from $34.6 million, or 17 cents, in the same period a year ago.Adjusted second-quarter net earnings totaled $63.4 million, or 30 cents, upfrom $39.3 million, or 19 cents, a year ago. The company says record quarterly cash flow from operations was $120.9million, 56% higher than the year-ago period and up 35% increase from the firstquarter. Production rose to 164,685 ounces from 160,305 in the second quarterof 2017. The quarterly dividend, paid on July 13, increased to 3 cents a share,compared to 2 cents for the dividend paid in April. Tony Makuch, president andchief executive officer, says the results were boosted by strong ore grades atthe Fosterville and Macassa mines. “At Fosterville, our average grade...of 20.6grams per tonne was well ahead of expected levels, with the mine benefitingfrom a record month in June, producing 31,710 ounces at 30.4 grams per tonne,”the CEO says. “At Macassa, our stopes around the 5,700-foot level, the deepestmining done to date in the South Mine Complex, are high-grade stopes that haveoutperformed, which resulted in record quarterly production...of 60,571 ounces atan average grade of 21.5 grams per tonne.”
By Allen Sykoraof Kitco News; asykora@kitco.com
Wednesday Aug 1, 2018 09:18
MandalayResources Corp. (TSX: MND) says it has entered into anonbinding letter of intent to sell Minera Mandalay Challacollo Limitada, which owns the Challacollosilver-gold project located in Chile, to Aftermath Silver. Mandaly reports thatthe sale price was C$11.625 million. “One of Mandalay’s key strategicobjectives for 2018 was to maximize the value of our portfolio through the saleof non-core assets,” says Dominic Duffy, president and chief executive officerof Mandalay. “The proposed sale of Challacollo will allow us to realizesubstantial value for the asset, while continuing our focus on streamliningoperations at our two producing assets, strengthening our balance sheet, andpositioning Mandalay for future growth.”
By Allen Sykoraof Kitco News; asykora@kitco.com
Wednesday Aug 1, 2018 09:18
Chris Stewart has been named president and chief operating officerof McEwen Mining Inc. (NYSE, TSX: MUX),effective Sept. 1, the company reports. He succeeds XavierOchoa, who resigned July 13 to pursue an opportunity closer to his home andfamily in South America, the company says. Stewart is a senior executive with25 years of diversified experience in the mining industry. “Chris is an ideal executive to lead our organicgrowth initiatives, as well as evaluate and execute on acquisitions,” says Rob McEwen, chairman andchief owner.
By Allen Sykoraof Kitco News; asykora@kitco.com
Wednesday Aug 1, 2018 09:18
Centerra GoldInc. (TSX: CG) reports higher net income but lower adjusted income inthe second quarter, compared to the same period a year ago. The company listsnet income of $43.5 million, or 15 cents per share, up from net income of $23.4million, or 8 cents, in the year-ago period. The April-June results include apre-tax gain of $28 million on the sale of its royalty portfolio and $9.4million on the final installments from sale of the Altan Tsagaan Ovoo property.Excluding special items, Centerra said, adjusted income was $1 million, or zerocents per share. Excluding a $41.3 million pre-tax write-down of Mongolianassets, adjusted earnings in the year-ago period were $63.1 million, or 22cents a share. “The operations produced a total of 130,183 ouncesof gold and 16.5 million pounds of copper in the quarter,” says Scott Perry,president and chief executive officer. “Kumtor’s gold production was lower as expected but MountMilligan achieved better-than-expected mill throughput, which led tohigher-than-planned gold and copper production. At Mount Milligan, theadditional volumes of water from the spring melt allowed us to ramp up millthroughput quicker, enabling the mill to achieve an average of 52,081 tonnesper operating day during the quarter.” Progress on the ?-ks? 1/4 t project includes the main road access andinitiating site preparation, Centerra says. The project is on track for thefirst gold pour in 2020.
By Allen Sykoraof Kitco News; asykora@kitco.com
Wednesday Aug 1, 2018 09:18
Endeavour Mining (TSX: EDV)reports that second-quarter adjusted net earnings per share were 9 cents, upfrom 7 cents in the same period of 2017. Production from continuing operations was 147,000 gold ounces inthe second quarter, up from 84,000 a year ago, leaving the company well ontrack to meet full-year 2018 guidance of 555,000 to 590,000 ounces, Endeavoursays. All-in sustaining costs were $780 in the second quarter, and the companysays it is on track to meet full-year guidance of $760 to $810.Officials say that production from continuing operations increased year-on-yeardue to the addition of the Hound?(C) mine and higher grades at the Ity mine. “Construction progress at the Ity CILproject remains on time and on budget and we continue to anticipate the firstgold pour by mid-2019,” says S?(C)bastien de Montessus, president and chiefexecutive officer.
By Allen SykoraFor Kitco News
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