Guyana Goldfields Inc’s Aurora mine produced 43,800 ounces of gold in the final quarter of 2016, 27% up from the previous quarter, according to final results for the year released yesterday.
The third quarter output last year was 34,400 ounces and the higher production in the fourth quarter was a result of better grades and mill throughout, according to information released by the Canadian miner.
In the final quarter last year, a total of 45,500 ounces of gold were sold with an average realized gold price of US $1,204 per ounce, resulting in revenues of US$54.8 million.
On a full year basis, the Company generated revenues of US$194.2 million from the sale of 156,000 ounces at an average realized price of $1,245 per ounce.
By comparison, the cost of sales for 2016 totaled US$34.1 million for the fourth quarter and US$123.1 million for the year.
The company’s information said that the net finance expense in 2016 was US$9.2 million for the fourth quarter and US$17.7 million for the year.
The large increase in the fourth quarter, it said, relates to a one-time, non-cash charge of US$7.3 million.
Net earnings for the fourth quarter amounted to US$3.4 million ($0.02 cents per diluted share).
Having poured its first gold bar in August 2015, last year was its first full year of production and it saw output of 151,600 ounces of gold, in line with the Company’s upwardly revised guidance of 140,000 to 160,000 ounces.
Cost of sales (including royalty and depreciation) for the year averaged US$789 per ounce of gold sold. Cash costs (before royalty) trended down through 2016 and averaged US$496 per ounce of gold sold for the year.
All-in sustaining costs for the year were US$738 per ounce of gold sold, slightly below the Company’s revised guidance range of US$740 to US$760 per ounce.
Its inaugural gold bar in August 2015 came 19 years after its first foray into the Cuyuni region in search for gold and US$249 million in capital costs.
The company is targeting production of 3.29 million ounces of the precious metal over 17 years which will see at least 500 jobs and projected corporate income tax to the economy of US$509 million.
Meanwhile, the Company said it completed an equity financing and debt restructuring during last year resulting in a much stronger balance sheet with US$73.2 million of cash and a debt balance of US$78.4 million as at year end.
The Company also reported an unrealized gain of US$20.7 million for the year on its 7.2% interest in SolGold Plc (“SolGold”), which owns an 85% interest in the Cascabel Copper Gold Porphyry project located in Ecuador.
The unrealized gain as of February 22, 2017 was approximately US$48.5 million.
Scott Caldwell, President & CEO was quoted as saying, “2016 was a transformational year for Guyana Goldfields with the Company successfully transitioning to the gold producer ranks.
We achieved our upwardly revised guidance and ended the year with our best quarter across all key operating and cost metrics.
Importantly, the solid results were achieved without one lost time injury.
Looking ahead to 2017, and with the backing of a strong balance sheet, we will be focused on driving further cost efficiencies, executing on Phase 1 of our mill expansion to take our annual production above 200,000 ounces in 2018 and ramping up our exploration efforts after a lengthy hiatus.”
During the last quarter, the Company said it successfully refinanced its US$160 million debt facility to a new US$80 million debt facility with a 1.3% reduction in the interest rate and to be repaid through sixteen quarterly principal repayments of US$5 million each over a period of four years beginning March 31, 2017. Guyana Goldfields Inc’s Aurora mine produced 43,800 ounces of gold in the final quarter of 2016, 27% up from the previous quarter, according to final results for the year released yesterday.
The third quarter output last year was 34,400 ounces and the higher production in the fourth quarter was a result of better grades and mill throughout, according to information released by the Canadian miner.
In the final quarter last year, a total of 45,500 ounces of gold were sold with an average realized gold price of US $1,204 per ounce, resulting in revenues of US$54.8 million.
On a full year basis, the Company generated revenues of US$194.2 million from the sale of 156,000 ounces at an average realized price of $1,245 per ounce.
By comparison, the cost of sales for 2016 totaled US$34.1 million for the fourth quarter and US$123.1 million for the year.
The company’s information said that the net finance expense in 2016 was US$9.2 million for the fourth quarter and US$17.7 million for the year.
The large increase in the fourth quarter, it said, relates to a one-time, non-cash charge of US$7.3 million.
Net earnings for the fourth quarter amounted to US$3.4 million ($0.02 cents per diluted share).
Having poured its first gold bar in August 2015, last year was its first full year of production and it saw output of 151,600 ounces of gold, in line with the Company’s upwardly revised guidance of 140,000 to 160,000 ounces.
Cost of sales (including royalty and depreciation) for the year averaged US$789 per ounce of gold sold. Cash costs (before royalty) trended down through 2016 and averaged US$496 per ounce of gold sold for the year.
All-in sustaining costs for the year were US$738 per ounce of gold sold, slightly below the Company’s revised guidance range of US$740 to US$760 per ounce.
Its inaugural gold bar in August 2015 came 19 years after its first foray into the Cuyuni region in search for gold and US$249 million in capital costs.
The company is targeting production of 3.29 million ounces of the precious metal over 17 years which will see at least 500 jobs and projected corporate income tax to the economy of US$509 million.
Meanwhile, the Company said it completed an equity financing and debt restructuring during last year resulting in a much stronger balance sheet with US$73.2 million of cash and a debt balance of US$78.4 million as at year end.
The Company also reported an unrealized gain of US$20.7 million for the year on its 7.2% interest in SolGold Plc (“SolGold”), which owns an 85% interest in the Cascabel Copper Gold Porphyry project located in Ecuador.
The unrealized gain as of February 22, 2017 was approximately US$48.5 million.
Scott Caldwell, President & CEO was quoted as saying, “2016 was a transformational year for Guyana Goldfields with the Company successfully transitioning to the gold producer ranks.
We achieved our upwardly revised guidance and ended the year with our best quarter across all key operating and cost metrics.
Importantly, the solid results were achieved without one lost time injury.
Looking ahead to 2017, and with the backing of a strong balance sheet, we will be focused on driving further cost efficiencies, executing on Phase 1 of our mill expansion to take our annual production above 200,000 ounces in 2018 and ramping up our exploration efforts after a lengthy hiatus.”
During the last quarter, the Company said it successfully refinanced its US$160 million debt facility to a new US$80 million debt facility with a 1.3% reduction in the interest rate and to be repaid through sixteen quarterly principal repayments of US$5 million each over a period of four years beginning March 31, 2017.
