Following a tumultuous couple of months, Canadian mining company Guyana Goldfields Inc. has announced a second quarter production of 37,300 ounces bringing its total half-year production to 74,000 ounces of gold. The comparable figure for 2018 was 70,100 ounces
The company also closed the first half of the year with no debt and $38.9 million of unaudited cash balance.
According to the quarterly report made public, this production keeps the company on track to achieving a yearly production within the projected range of 145,000 to 160,000 ounces of gold for 2019.
The report further notes that the company is currently seeing a record quarterly mill performance of 7,815 tonnes per day which is a 10% increase from 2018.
Also recorded was a mining rate of 57,710 tonnes per day, a 45% increase in the mining rate compared to the previous year but a 6% decline from the first quarter of 2019. This decrease they stated was mainly because of lower equipment availabilities, along with seasonal rains.
A three-day strike earlier this month appeared to have minimal impact with the company reporting that approximately 22,500 tonnes of ore was not processed during this period while adding that “it will not affect the third quarter productions guidance.”
The company has proudly declared more than two million hours of work without a “lost time injury” and noted that underground explorations were resumed and advance 164 metres (538 ft) in the second quarter.
Chief Operating Officer Suresh Kalathil explained that for the second half of the year, further operational efficiency initiatives are in the pipeline though he cautioned that realizing their full benefit will not be immediate.
“Our entire team is focused on operational optimization efforts to further reduce costs and improve operating efficiencies. Additionally, gold production in the second half is expected to be back-end weighted with the fourth quarter accounting for approximately 60% of the forecast ounces as the plan calls for approximately half of the mill feed to be sourced from stockpiles in the third quarter due to sequencing of the pit phases at Rory’s Knoll,” Kalathil said.
Meanwhile 38,300 ounces were sold at an average price of $1,325. Based on the company’s investment each ounce of gold sold earned $746 per ounce to produce a 13% reduction from the comparable quarter in 2018.
“Cost of sales, including royalty and depreciation, were $1,186 per ounce and all-in sustaining costs were $1,323 per ounce,” the report notes.
Meanwhile, in a separate statement yesterday, Guyana Goldfields said that effective at the close of business on July 31, 2019, Scott Caldwell will step down as the Company’s President and Chief Executive Officer and as a director of the Company. The statement said that Caldwell joined the Company as a director in 2012 and has been President and CEO since 2013. Caldwell was instrumental in building the Company’s Aurora mine on time and on budget, the statement said.
“I want to thank the entire Guyana Goldfields’ team and the Board of Directors for their support as we developed the Aurora Gold Mine over the last few years. I look forward to supporting the company as a shareholder and remain confident in the long term future of the Aurora mine,” stated Caldwell.
Allen Palmiere will assume leadership of the Company as Interim Chief Executive Officer, effective at the close of business on July 31, 2019, the statement added. It said that Palmiere brings over 35 years of operational and financial experience in the mining industry as well as extensive experience in senior executive and leadership roles. Of particular importance is Allen’s experience with mine production activities.
“Allen Palmiere is an experienced and strong leader, who will lead the Company while the independent committee completes its search for a permanent CEO,” stated René Marion, Non-Executive Chair of the Board of Directors.
