Precious Metals

Anaconda Mining Achieves Quarterly Gold Sales of 4,526 Ounces in Q1 2018

Precious Metals

Anaconda Mining Inc. reported its financial and operating results for the three months ended March 31, 2018.

Anaconda Mining Inc. (TSX:ANX) reported its financial and operating results for the three months ended March 31, 2018 (“Q1 2018”).

Highlights are as follows:

  • First Quarter 2018 Highlights
    • Anaconda sold 4,526 ounces of gold in Q1 2018, a 25.8 percent increase over the three months ended February 28, 2017, generating gold revenue of C$7.6 million at an average realized gold price per ounce sold* of C$1,677.
    • Strong revenue and lower costs enabled the Point Rousse project to generate EBITDA* of C$3.3 million for the first quarter of 2018, compared with C$0.8 million for the three months ended February 28, 2017.
    • On a consolidated basis, EBITDA* for the three months ended March 31, 2018 was C$2.4 million, an increase of C$1.8 million over the comparative period.
    • Operating cash costs per ounce sold* at the Point Rousse project in Q1 2018 was C$900(US$712), well below 2018 annual guidance of around C$1,100, and a 32.6 percent improvement over the comparative fiscal quarter.
    • All-in sustaining cash costs per ounce sold*, including corporate administration and sustaining capital expenditures, was C$1,377(US$1,090) for Q1 2018, a 23.5 percent improvement over the three months ended February 28, 2017.
    • The company invested C$1.5 million in its exploration and development projects, including C$1.0 million on the Goldboro Gold project in Nova Scotia.
    • Significant development progress was achieved at Stog’er Tight, achieving 159,927 tonnes of waste development, the dewatering of Fox Pond, and the completion of a settling pond and pit dewatering system.
    • The company has commenced the conversion of the Pine Cove pit into a fully permitted tailings storage facility, which will provide 15 years of capacity based on throughput rates of 1,350 tonnes per day.
    • Net income for the three months ended March 31, 2018 was C$149,218, or C$0.00 per share, compared to a net loss of C$940,032, or C$0.02 per share, for the three months ended February 28, 2017.
    • As at March 31, 2018, the company had cash of C$2.8 million, net working capital* of C$6.6 million, and additional available liquidity of C$1,000,000 from an undrawn revolving line of credit facility.

Dustin Angelo, CEO, commented:

Anaconda continues to demonstrate its ability to operate in a safe, responsible, and profitable manner, driving down unit operating costs and generating strong operating cash flows from its Point Rousse Project in the first quarter of 2018, while making significant progress developing the Stog’er Tight Mine. Our established and robust physical infrastructure and experienced workforce, together with the consistent performance at Point Rousse, form the platform for a well-defined growth strategy in Atlantic Canada. Leveraging the Pine Cove Mill and the fully-permitted Pine Cove tailings facility, Anaconda has the ability to accelerate the development of gold projects such as the Hammerdown Mine owned by Maritime Resources Corp, for which Anaconda has made a take-over offer, which will drive long-term shareholder value for both Maritime and Anaconda.

Click here to read the full Anaconda Mining Inc. (TSX:ANX) press release.

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