The Gold revenue during the Covid-19 Pandemic

marktheminer

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This is a 2019 article regarding the Gold revenue for 2019. For sure, 2020 is a tough year for businesses, but does this affect the value of Gold over-all?

ANACONDA MINING SELLS 5,251 OUNCES OF GOLD IN Q1 2019, GENERATING $8.8M IN REVENUE

Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX: ANX) (OTCQX: ANXGF) is pleased to announce production results and certain financial information from the three months ended March 31, 2019 ("Q1 2019"). All dollar amounts are in Canadian Dollars. The Company expects to file its first quarter financial statements and management discussion and analysis by May 2, 2019.

First Quarter 2019 Highlights

  • Anaconda sold 5,251 ounces of gold in Q1 2019, a 16% increase over Q1 2018, generating gold revenue of $8.8 million at an average realized gold price of $1,671 per ounce sold1. The Company also had 749 ounces in gold doré bars in inventory at March 31, 2019, which were sold in early April.
  • The Company produced 77,367 tonnes of ore during the first quarter from mining at the Stog'er Tight Mine. Material moved also included 45,120 tonnes of waste development for a planned pushback of the Pine Cove Pit in anticipation of mining ore in the second quarter.
  • The Company ended the first quarter with stockpile of over 30,600 tonnes of ore at an estimated average grade of 1.73 grams per tonne ("g/t").
  • The Pine Cove Mill processed 79,758 tonnes during Q1 2019, a 27% reduction compared to Q1 2018 due to lower mill availability resulting from planned maintenance activities on the main ball mill, unplanned maintenance of the regrind mill, and the decision to accelerate other maintenance programs to minimize future down time. The regrind mill was back in operation during the first week of April and the Company expects normal mill operations for the remainder of the year.
  • In February 2019, the Company announced the results of a 3,434-metre drill program that began in November 2018, which included drilling around the Pine Cove and Stog'er Tight mines, successfully infilling and extending mineralization near the margins of the existing pit outlines at both sites.
  • The Company continues infill drilling at the Argyle Deposit, with the initial 525 metres in the western portion of the deposit intersecting approximately the same thickness of previous drilling in this area but with approximately 25% higher grades.
  • In March 2019, the Company executed a $5 million term loan with the Royal Bank of Canada ("RBC") with a two-year term and 4.6% interest rate, to provide enhanced financial flexibility and to complete all pre-construction activity at its 100%-owned Goldboro Gold Project in Nova Scotia ("Goldboro").
  • As at March 31, 2019, the Company had a cash balance of $10.7 million, preliminary working capital1 of $4.3 million, and additional available liquidity of $1,000,000 from an undrawn revolving line of credit facility.

1 Refer to Non-IFRS Measures Section below.

"Anaconda is off to a good start in 2019 with over 5,200 ounces of gold sold and the mining operations at its Point Rousse Project achieving strong results at the Stog'er Tight Mine, where we achieved higher than planned ore tonnes and established a robust ore stockpile of over 30,000 tonnes to end the quarter. The delay in the shipment of trunnion liners and unplanned maintenance for the regrind mill at the Pine Cove Mill, combined with the planned maintenance on the primary ball mill, impacted mill availability in March, and the Company took the opportunity to advance various maintenance programs and make other mechanical improvements in the mill. While the resulting lower throughput rate marginally impacted quarterly gold production from a timing perspective we have greatly improved asset reliability and efficiency going forward. The Pine Cove Mill was back running during the first week of April and the Company continues on track to produce and sell between 19,000 and 20,000 ounces of gold from its Point Rousse Project in 2019."

~ Kevin Bullock, CEO, Anaconda Mining Inc.


First Quarter Operating Statistics
Three months ended
March 31, 2019
Three months ended
March 31, 2018
Mine Statistics
Ore production (tonnes)77,367143,840
Waste production (tonnes)279,412250,132
Total material moved (tonnes)356,779393,972
Waste: Ore ratio3.61.7
Mill Statistics
Availability (%)78.193.4
Dry tonnes processed79,758109,219
Tonnes per day1,1351,300
Grade (grams per tonne)1.921.44
Recovery (%)84.885.2
Gold Ounces Produced4,1764,293
Gold Ounces Sold5,2514,526

Operations Overview for the Three Months Ended March 31, 2019
Anaconda sold 5,251 ounces of gold during the first quarter of 2019, generating gold revenue of $8.8 million at an average realized gold price1 of $1,671 per ounce sold. The 16% increase in gold sold over Q1 2018 was due to ounces in gold doré inventory from year-end being sold in January. Gold production of 4,176 ounces was 3% lower than Q1 2018, largely from the impact of lower mill availability due to planned maintenance on the main ball mill and unplanned maintenance for the regrind mill due to delayed shipment of trunnion liners, and the consequent decision to accelerate other maintenance programs (see details below). The Pine Cove Mill returned to operation during the first week of April. While the lower availability and the resulting throughput rate impacted quarterly production from a timing perspective, the Company was able to minimize gold recovery losses and greatly improve asset reliability and efficiency going forward. Further, mining operations continued during this period and the operation has established a robust stockpile of over 30,600 tonnes as at quarter-end.
The Company remains on track to produce and sell between 19,000 and 20,000 ounces of gold from continued mining at Stog'er Tight and pushbacks to the Pine Cove Pit, and the commencement of mining at Argyle in the second half of the year. While the final mining permits for Argyle are pending, the Company continues to finalize a mineral resource update and mine planning, which will incorporate the additional drilling completed since the last Mineral Resource Estimate as well as ongoing infill drilling. Mill throughput will be maintained throughout the year with marginal ore stockpiles available to supplement mill feed, although the Company continues to investigate opportunities to defer processing marginal ore.


Check out full article here.
 

namangarg.m

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