A Financial Roundup of Miners
Welcome to Mining Stock Daily. This is your host, Trevor Hall
Today is Wednesday, May 6th.
Gold endured several attempts to push the price below $1700 early Tuesday morning, trading as low as $1696 before launching higher late in the morning to as high as $1718. As this is being written, gold is currently trading at $1710 on a June gold futures basis. The Mining Stock Journal was told from reliable sources that significant quantities quantities of gold leased by Cental Banks over the last 2 decades is in the process of being recalled. If true, this would explain the price buoyancy of gold in the absence demand from India and China due to the virus crisis. Silver shot back over $15 per the July front-month Comex contract. The gold/silver ratio contines to trend laterally at the 113 level. The Mining Stock Journal opined that it's just a matter of time before the silver price explodes higher. The mining stocks started out on Tuesday down roughly 2% across the board but rallied when gold spiked higher and closed up over 2% using the GDX ETF as the index proxy.
We’ll get to the news out of the miners and explorers here in just a quick moment, but first a quick mention of today’s sponsor.
This episode of Mining Stock Daily is brought to you by... Corvus Gold.
Corvus Gold. Corvus is an advanced gold-silver exploration and development company focused on the North Bullfrog and Mother Lode Projects in Nevada. The company has been named a Top Five TSX gold equity performer Four of the last Seven years & a multi time top 50 OTCQX performer. Corvus Gold trades on the Toronto Stock Exchange with the symbol KOR and on the OTCQX with CORVF. Follow all the news form Corvus and its two-mine projects with fast-tracked potential via the company's website, corvusgold.com.
And here’s what you need to know this morning …
Maple Gold Mines reported new assay results from its 2020 winter drilling campaign at the Douay Project. The Company planned a single drill-hole (DO-20-272) near the limit of the NW Zone this winter, a zone which has only seen two drill holes since 1997. Maple Gold's geologists identified a significant drilling gap of approximately 300 metres to the west of a historical drill-hole that cut significant gold mineralization starting from only 41m downhole. The hole was collared at 100 meters to the west and returned 4.16 g/t gold over 3.4 meters. Maple Gold trades on the TSX Venture with MGM and on the OTCQB with MGMLF. News Release
And its earnings season, so we’ll share a few highlights from companies in the mining space which reported after the closing bell yesterday.
Despite the challenges of COVID-19, Q1 production and costs were consistent with full year guidance for Barrick. The company generated operating cash flow of $889 million and free cash flow of $438 million from Q4. The quarterly dividend of $.07 per share was maintained.
Kirkland Lake say the Detour Lake Mine contributed significant free cash flow in its first two months with the company. Net earnings for Kirkland Lake reached over $202 million, which is 84% higher than Q1 of 2019 and 20% higher than Q4 of 2019. Revenues were up 82% from Q1 2019 to $554.7 million, almost a third of that coming from Detour. Its all-in sustaining cost per gold ounce sold did increase by more than $200 over the year to $776.
B2gold also announced its operational and financial results for the first quarter of 2020. The company recorded quarterly total gold production of over 264,000 ounces and therefore generated record quarterly consolidated gold revenue of $380 million. That is a 44% increase over the same period last year. Consolidated all-in sustaining costs from its three operating mines was $695 per ounce of gold sold. Guidance remains in line for annual production of 1 million ounces. It has also doubled its dividend to $.02 per share each quarter.
And Kinross says its net earnings almost doubled to over $122 million, or $.10 per share with production of over half a million attributable gold equivalent ounces. The Tasiast Mine contributed significantly to those production numbers as it achieved record quarterly production and a record average throughput of over 16,000 tonnes per day. The company’s adjusted operating cash flow of over $418 million is an 81% increase respectively compared with Q1 of last year.
Condor Gold says it was granted an Environmental Permit for the development and exploitation of gold from the high grade America open pit. Following the permitting of the America open pit Condor has 1.12M oz gold open pit Mineral Resources permitted for extraction inclusive of a Mineral Reserve of 6.9Mt at 3.0g/t gold for 675,000 oz gold. The company says the addition of a third permitted high grade open pit adds flexibility to the mine schedule, potentially improving project economics and extending the life of mine. Condor Gold trades on the TSX with the symbol COG. News Release
That’s it from me this morning. We’ll be back throughout the rest of the day today and tomorrow with more commentary. Be sure to hit that subscribe button if you have not done so already.
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