Aurora Mine shines with 107,000 ounces gold in first nine months
Canadian-owned Guyana Goldfields Inc. has announced a good year so far with 107,700 ounces of gold produced at the end of September.
Between July and September (the third quarter), the company’s Aurora Gold Mine, Guyana Goldfield appears well on course of meeting this year’s target, the company said in its third quarter report Thursday. Region Seven, produced 34,400 ounces of gold, an increase from 32,000 ounces in the previous quarter- this was due mainly by higher mill throughput, the company said Thursday in its third quarter report. In the first quarter, the company declared 41,300 ounces with 32,000 ounces recorded for the second. The company said that its cost of sales (including royalty and depreciation) improved for the third quarter to USD 811 per ounce of gold sold (compared to USD 842 per ounce in the prior quarter). The company said that revenue decreased slightly versus the prior quarter to USD 44.4 million due to the timing of sales, however earnings from mine operations increased to USD 17.4 million representing a margin of 39%. The company appears to be sitting pretty too with the third quarter ending with a cash balance of USD 128.5 million (including restricted cash of USD 23.3 million) and a debt balance of USD 135.7 million, following the completion of an equity financing that raised aggregate gross proceeds of USD 103.5 million during the period. According to Scott Caldwell, President and Chief Executive Officer, the company remains well on track to meet its 2016 production and cash cost (before royalty) guidance. The company is targeting up to 160,000 ounces for this year.
“Ongoing capital investment in the mine should drive further efficiencies in mining costs and mill performance as we head in to 2017. The company’s strong cash position also provides ample capacity to meet our short and longterm liquidity requirements including the funding of a potential mill expansion at the Aurora Mine, the restructuring of the project loan facility and a significantly expanded exploration program as we rampup drilling in 2017″. The company started operations last year, reaching commercial operations in January. Guyana Goldfields is among two of the big gold mining companies here. The other one is Troy Resources.