Mongolian lawmakers have taken a big step toward allowing Centerra Gold Inc. (TSX: CG) to mine the Gatsuurt gold deposit, the company reports. The Mongolian Parliament has passed a resolution setting state ownership interest at 34% and authorizing the government to complete negotiations with Centerra on the terms. In October, Centerra and the government had agreed to a 3% special royalty in place of the state 34% ownership interest in the project, with the royalty in addition to the existing Mongolian mineral royalty and tax regime. Centerra officials say there understanding that the resolution is a mandate to the government to implement an agreement between Centerra. “The parliamentary resolution is a very important next step in advancing the Gatsuurt project,” says Scott Perry, Centerra’s chief executive officer. “The Gatsuurt project represents an exciting opportunity to use Centerra’s existing Boroo mill and other infrastructure to develop the 1.6 million-ounce Gatsuurt deposit with very modest initial capital investment. The company will now focus on finalizing the investment agreements with the government of Mongolia. We look forward to developing Gatsuurt so we can continue to operate in Mongolia for many more years to come.” Centerra also owns the Boroo mine in Mongolia.
By Allen Sykora of Kitco News; asykora@kitco.com
Royal Gold Reports Quarterly Profit As Revenue Hits Record High
Thursday February 04, 2016 09:46
Royal Gold, Inc. (NASDAQ: RGLD; TSX: RGL) reversed to a net profit in its second quarter of fiscal 2016 as revenue surged to a record high. The company says revenue of $98.1 million was up 60% from $61.3 million in the same quarter a year ago. Net income was $15.1 million, or 23 cents per share, compared to a net loss of $6.5 million, or 10 cents, the prior-year quarter. Royal Gold is a precious-metals royalty and stream company. “Increased production from Mount Milligan and contributions from our recently acquired streams at Pueblo Viejo, Andacollo, Wassa and Prestea drove our record performance in the second quarter as expected,” says Tony Jensen, president and chief executive officer. “Impressive volume growth at these properties and stability within the rest of the portfolio are yielding solid financial results and generating strong free cash flow.” The company lists record volume of 88,700 gold-equivalent ounces, an increase of 74%
By Allen Sykora of Kitco News; asykora@kitco.com
Americas Silver Corp. Meets 2015 Production Guidance
Thursday February 04, 2016 09:46
Americas Silver Corp. (TSX: SPM; OTCQX: SMNPF) reports production of 2.65 million silver ounces, as well as 4.87 million silver-equivalent ounces, in 2015, thereby meeting guidance. Silver-equivalent production was at an all-time high, despite materially lower base metal prices in the second half of the year, the company says. Silver all-in sustaining costs met guidance at $17.16 per ounce, while silver cash costs of $12.75 per ounce exceeded guidance by 2%. Production of 2.5 million to 3 million silver ounces is expected for 2016, with 5 million to 5.6 million silver-equivalent ounces projected. Silver cash costs are projected to fall approximately 25% year-over-year to between $9 and $10 per ounce, and silver AISC are projected to drop approximately 30% to $11.75-$12.75 per ounce. “Our strategic focus for the last several years has been to lower operating costs and improve productivity at both of our operating mines while transitioning the Galena Complex from silver-copper to silver-lead production,” says Darren Blasutti, president and chief executive officer. The company says it has also agreed in principle to terms for a $2.9 million subordinated credit facility with its two existing lenders and equity holders. Proceeds will be used for general corporate purposes, and to finance a restructuring and workforce reduction at the company’s two operating mines and its corporate office. The company will change its Toronto Stock Exchange trading symbol from SPM to USA, effective Monday.
By Allen Sykora of Kitco News; asykora@kitco.com
