Guyana Goldfields Inc. records increased production in third quarter 2016

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Canadian based Guyana Goldfields Inc. has disclosed that its production for the third quarter of 2016 at the Aurora Gold Mine in Region Seven is 34,400 ounces of gold. This is an increase from 32,000 ounces in the second quarter.

According to President and CEO of the company, Scott Caldwell, “The Company remains well on track to meet its 2016 production and cash cost (before royalty) guidance. Ongoing capital investment in the mine should drive further efficiencies in mining costs and mill performance as we head into 2017. The Company’s strong cash position also provides ample capacity to meet our short and long-term liquidity requirements including the funding of a potential mill expansion at the Aurora Mine, the restructuring of the project loan facility and a significantly expanded exploration program as we ramp-up drilling in 2017″.

“Revenue decreased slightly versus the prior quarter to $44.4 million due to the timing of sales, however, earnings from mine operations increased to $17.4 million representing a margin of 39%” the company said.

Guyana Goldfields finished the third quarter with a cash balance of $128.5 million (including restricted cash of $23.3 million) and a debt balance of $135.7 million, following the completion of an equity financing that raised aggregate gross proceeds of $103.5 million during the period.

Production costs were $16.6 million for the quarter, down from $19.2 million in the prior quarter and attributed to lower mining costs related to a higher proportion of saprolite mining and a lower reliance on mine rental equipment, as well as, lower general and administrative expenses at the mine site as the operation reaches steady state levels.

On a year-to-date basis, the Company generated revenues of $139.3 million from the sale of 110,400 ounces at an average realized price of $1,262 per ounce.

The financial condition of the Company has strengthened significantly from a working capital deficit of $19.4 million as at December 31, 2015, to a positive working capital balance of $131.5 million as at September 30, 2016. This has been driven by both an increase in current assets and a decrease in current liabilities.

It is maintaining its 2016 production guidance of 140,000 to 160,000 ounces of gold.

The full statement on Guyana Goldfields production and analysis can be found here.

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