Barrick Gold Corp. TORONTO — Barrick Gold Corp reported third-quarter results for the period ending Sept. 30, including project updates and financial highlights, released Oct. 25.
Lower revenues, earnings and cash flow for the quarter reflect lower gold production compared to the prior-year period, as well as the impact of lower sales from Acacia [Tanzania]. Despite these factors, a stronger balance sheet and robust cash flow generation allowed the company to increase investments in the future of the business, with the ultimate objective of growing free cash flow per share over the long term.
Barrick reported a net loss attributable to equity holders of $11 million ($0.01 per share), and adjusted net earnings of $186 million ($0.16 per share) for the third quarter, the company announced Oct. 25.
The company generated third quarter revenues of $1.993 billion, net cash provided by operating activities of $532 million, and free cash flow of $225 million.
Gold production in the third quarter was 1.243 million ounces, at a cost of sales applicable to gold of $820 per ounce, and all-in sustaining costs of $772 per ounce.
Barrick reduced its total debt by nearly $1.5 billion year to date, exceeding the target for 2017.
The company narrowed full-year gold production guidance to 5.3-5.5 million ounces, at a cost of sales of $790-$810 per ounce, and all-in sustaining costs of $740-$770 per ounce.
Feasibility level projects at Cortez Deep South, Goldrush, Turquoise Ridge and Lagunas Norte continue to advance on schedule and within budget. A prefeasibility study for Pascua-Lama remains underway.
Barrick and the Government of Tanzania have reached an agreement on a proposed framework that would redefine Acacia’s relationship with the government, creating a path for the resolution of outstanding matters impacting Acacia’s operations.
Comstock Mining Inc.
VIRGINIA CITY — Low operating costs, progress on debt reduction, strategic ventures and a stock split headlined Comstock Mining Inc.’s third-quarter report, announced Oct. 31 in a press release and stakeholder conference call.
“Our third quarter was focused and productive as we progressed various strategic initiatives, especially the Joint Venture Option Agreement with Tonogold Resources, and consummated land and water sales at high values, and reduced debt,” said Corrado De Gasperis, Comstock executive chairman and CEO, in a statement.
An option agreement with Tonogold, a California-based company led by Mark Ashley, allows Tonogold participate in certain activities, including engineering, development, drilling and test-work, towards completing a technical and economic feasibility assessment on certain properties within the Lucerne property near Virginia City.
Received the 2017 Nevada Excellence in Mine Reclamation.
Reduced long-term debt by over $1 million from the sale of various, small nonmining properties.
Completed federally funded column testing of Dayton mineralized materials, through Cycladex Inc., a strategic investee, for faster, cheaper, safer leaching solutions, yielding 82-85 percent gold.
Established a strategic collaboration with and funded by Itronics Inc. to assess reclamation cost reductions, increased leach-pad extraction potential and the metallurgy of mineralized materials.
Acquired 30 unpatented lode claims with 472 contiguous acres, increasing lands to over 9,284 acres.
Celebrated the Nevada Department of Transportation’s U.S.A. Parkway Grand Opening celebration, directly benefiting Comstock’s Certified Industrial Site and water rights located on the U.S. 50 Highway corridor.
Reduced senior secured debenture to $9.9 million, with ongoing plans to sell nonmining assets valued at approximately $14 million targeted to eliminate the remainder of debt.
Announced an agreement to sell 80 percent of the Daney Ranch to Daney Enterprises Inc., for $3.52 million cash, subject to certain closing conditions, valuing the property above plan, at $4.4 million.
Cash and cash equivalents at Sept. 30 were $2.3 million.
Net loss was $8.2 million, or a loss of $0.04 per share for the nine months ended Sept. 30, as compared to a net loss of $9.1 million, or a loss of $0.05 per share, for the comparable 2016 period.
Net cash used in operations was $5.1 million for the nine months ended Sept. 30, primarily for operating expenses, interest expenses and the reduction of accounts payable.
Net cash provided by financing activities, was $6.4 million, primarily from debt and equity issuances.
Total debt at Sept. 30, was $10.3 million, with all but $0.6 million being long-term debt.
Cash and cash equivalents at Sept. 30, 2017, were $2.3 million.
Coeur Mining Inc.
CHICAGO — Coeur Mining Inc. announced Oct. 5 third-quarter production of 9.5 million silver equivalent 1 ounces, comprised of 4.0 million silver ounces and 93,293 gold ounces. Third-quarter silver equivalent 1 production increased 7 percent quarter-over-quarter and 10 percent year-over-year. Higher quarter-over-quarter silver equivalent 1 production was driven by a 13 percent increase in gold production while higher year-over-year silver equivalent 1 production was due to a 10 percent increase in gold production and an 11 percent increase in silver production. Metal sales of 3.8 million ounces of silver and 89,972 ounces of gold, or 9.2 million silver equivalent 1 ounces, were in-line with third quarter production.
Silver equivalent production of 1.7 million ounces was relatively unchanged quarter-over-quarter
Following three years of permitting and 10 months of construction, the Stage IV leach pad expansion was successfully commissioned on schedule early in the third quarter
Tons placed decreased 5 percent quarter-over-quarter, primarily due to crusher downtime related to the integration of the crusher into the expanded Stage IV system, planned annual maintenance and a brief power disruption due to a nearby wildfire
Leaching of the expanded Stage IV pad began in the quarter and is expected to drive strong production through the end of the year. Fourth quarter gold production is also expected to benefit from the placement of higher gold grade ore on the expanded Stage IV pad during the third quarter
The company is maintaining Rochester’s full-year production guidance of 4.2—4.7 million silver ounces and 47,000—52,000 gold ounces
McEwen Mining Inc.
TORONTO — McEwen Mining Inc. reported its consolidated financial results for the third quarter ending Sept. 30, including a net loss of $8.1 million and conquering major milestone for a site in Nevada.
The El Gallo mine [Mexico] had earnings from mining operations of $5.1 million and the San José mine [Argentina] had earnings from mining operations of $4.5 million. The company experienced increased cost and reduced income as a consequence of an unexpected drop in production at the El Gallo mine due to an equipment failure. A portion of income from the San José mine was also reduced on lower production. As a result, the company reported a net loss of $8.1 million or $0.03 per share.
“During the third quarter we faced some challenges with our operations that resulted in disappointing performance. Production was approximately 17,500 gold equivalent ounces in the month of October. This improved production level puts us on track for a stronger fourth quarter” said Rob McEwen, chairman and chief owner.
In Nevada, the Gold Bar Project achieved a major milestone in the process of establishing the mine as the Bureau of Land Management signed the Record of Decision in early November. Development of Gold Bar is planned to begin upon receipt, in line with earlier estimates. Gold Bar is expected to contribute an average of 65,000 ounces to annual gold production beginning in 2019.
Q4 2017 has a strong start with approximately 17,500 gold equivalent ounces produced in the month of October from El Gallo, San José and Black Fox mines.
The net loss in Q3 2017 was mainly due to a $2.2 million increase in production costs at the El Gallo mine, a $5.2 million decrease in income from our San José mine, and a $1.5 million increase in general and administrative expenses.
The significant change in cash flow in Q3 2017 related to the equity financing completed for net proceeds of $43.2 million.
A return of capital installment of a ½ cent per share was paid to shareowners on Aug. 17.
Newmont Mining Corp.
DENVER — Newmont Mining Corp. released its third-quarter results Oct. 26 highlighting earnings and projects, including updates on Nevada operations.
“Our free cash flow more than doubled to nearly $500 million and gold production rose seven percent compared to the prior year quarter as lower cost production from our newest mines — Merian [Suriname] and Long Canyon offset lower production at more mature operations,” said Newmont Gary J. Goldberg, president and CEO, in a statement.
The company released its summary results in a press release. Highlights include:
Net income: Delivered GAAP net income from continuing operations attributable to stockholders of $213 million or $0.39 per diluted share, and adjusted net income of $183 million or $0.35 per diluted share.
EBITDA: Generated $653 million in adjusted EBITDA, compared to $666 million in the prior year quarter.
Cash flow: Reported net operating cash flow from continuing operations of $688 million and free cash flow of $494 million.
Gold costs applicable to sales (CAS): Reported CAS of $721 per ounce, with no change in the company’s full year guidance.
Gold all-in sustaining costs (AISC): Reported AISC of $943 per ounce, with no change in the company’s full year guidance.
Attributable gold production: Produced 1.3 million ounces of gold, up 7 percent from the prior year quarter, in-line with full year guidance.
Portfolio improvements: Declared commercial production at the Tanami Expansion Project in Australia; mined first ore at the Twin Creeks Underground mine in Nevada; and approved the Quecher Main project in Peru extending mine life at Yanacocha to 2027.
Financial strength: Reduced net debt to $1.1 billion, ending the quarter with $3.0 billion cash on hand, and an industry-leading, investment-grade credit profile; third-quarter dividend declared increased 50 percent from the prior year quarter to $0.075 per share.
GAAP Net income from continuing operations attributable to stockholders of $213 million or $0.39 per diluted share for the quarter, up 22 percent from $169 million or $0.32 per share in the prior year quarter on higher gold production and lower income taxes partially offset by lower average realized gold prices.
Adjusted net income was $183 million or $0.35 per diluted share down 8 percent from $202 million or $0.38 per share in the prior year quarter. The adjustments to net income include $0.04 per share of tax and other adjustments.
Revenue rose five percent to $1.9 billion for the quarter as increased sales volumes offset a lower average realized gold price.
Attributable gold production increased 7 percent to 1.3 million ounces for the quarter as new production at Merian and Long Canyon was partially offset by lower throughput at Twin Creeks and lower grades at Boddington.
Consolidated operating cash flow from continuing operations increased 35 percent from the prior year quarter to $688 million with a reduction in working capital and taxes paid. Free cash flow increased 107 percent to $494 million for the quarter on higher sales volumes and lower capital expenditures.
Balance sheet improved as Newmont ended the quarter with $3.0 billion cash on hand, a leverage ratio of 0.4x net debt to adjusted EBITDA and one of the best credit ratings in the mining sector. Since 2013, Newmont has streamlined its balance sheet and reduced gross debt by over 33 percent and net debt by over 77 percent.