Premier Gold Mines Reports 2018 Second Quarter Results
PREMIER GOLD MINES LIMITED (TSX: PG) (“Premier”, “the Company”) is pleased to announce its operating results for the three months ended June 30, 2018. The Company previously released its production results for the second quarter in its news release dated July 12, 2018.
Premier is a gold-producer and respected exploration and development company with a high-quality pipeline of precious metal projects in proven, accessible and safe mining jurisdictions in Canada, the United States, and Mexico. Premier’s team is focused on creating a low-cost, mid-tier gold-producer from its two producing gold mines and two advanced-stage, multi-million ounce, development projects.
2018 Second Quarter Highlights
- Consolidated production of 16,007 ounces of gold and 51,746 ounces of silver
- Sales of 20,642 ounces of gold at an average realized price1 of $1,283 per ounce
- Cash costs1 of $963 per ounce of gold sold
- AISC1 of $1,088 per ounce of gold sold
- Revenue of $27.5 million
- Operating loss of $1.2 million
- Net loss of $7.7 million
- Debt repayment of $20.0 million
- Cash balance of $67.8 million
- Inventory of 3,956 ounces of gold and 17,073 ounces of silver
2018 Financial Highlights – Three months ended June 30, 2018
The Company produced a total of 16,007 ounces of gold and 51,746 ounces of silver during Q2 2018 compared to 37,617 ounces of gold and 97,007 ounces of silver during Q2 2017.
Co-product cash costs(1) were $963 and AISC(1) were $1,088 per ounce of gold sold. Co-product cash costs(1) were $12 and AISC(1) were $13 per ounce of silver sold.
The Company reported $27.5 million in revenue compared to $55.5 million during Q2 2017. The reduction in revenue and operating income when compared to Q2 2017 is primarily a result of decreased production from South Arturo where mining of the Phase 2 pit was completed in 2017 and the requirement to redesign stopes in new mining zones following changes in geologic interpretations at Mercedes. This redesign at Mercedes resulted in a development intensive first half of the year, with increased costs per ounce.Production at Mercedes will be weighted toward the second half of 2018 following the completion of stope designs in the new Diluvio, Lupita and Rey de Oro deposits.
Numerous programs are underway to support the Company’s longer-term growth objective of increased annual production over the next several years.During the quarter, $6.2 million was invested in exploration expenses that, when factored with the reduction in mine operating income during the period, contributed to a net loss of $7.7 million. Total capital spending was $6.1 million.
The Company carried a cash balance of $67.8 million after paying down its debt of $20 million. The Company held inventory of 3,956 ounces of gold and 17,073 ounces of silver at the end of the quarter.
NT5
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