TMAC Resources has recorded its first positive earnings for Q1 2019. The quarterly revenue was C$67.9 million (compared to C$33.0 million in the same quarter a year earlier). That translated into a comprehensive profit of C$7.2 million for the recent quarter (compared to a Q1 2018 loss of C$15.0 million) after taxes, foreign exchange, corporate costs and cost of sales.
TMAC produced 40,050 oz. of gold from the Hope Bay mine in Nunavut, and sold 39,200 oz. The mine averaged 1,600 t/d at an average grade of 10.2 g/t gold. The average realized gold price was $1,302/oz. Both cash costs at $658 per oz. and all-in sustaining costs at $992 per oz. of gold sold were at record low levels.
Recovery in the plant averaged 84% in Q1 2019 (up from 82% in Q4 2018). Several changes were made in the mill that undoubtedly helped raise the recovery rate. Additional gravity concentrators were installed in December 2018. A surge bin between the crushing and grinding circuit was commissioned in April, and a second surge bin is being fabricated, and it is to be installed sequentially with the first bin. When these additions reach commercial rates, TMAC expects gold recovery to be at least 90%.
(This article first appeared in the Canadian Mining Journal)