TORONTO (miningweekly.com) – Allied Nevada, which operates the Hycroft silver-gold mine near Winnemucca, on Monday posted a 374% increase in net earnings for the third quarter to $14.7-million, after higher metal prices and silver production more than offset a dip in gold output.

The company produced 26 339 oz of gold during the three-month period, which was a 10% reduction compared with the figure for the third quarter in 2010, while silver output jumped 60% to reach a record 121 264 oz.

Gold prices buoyed the financial results of gold producers in the third quarter, when the metal hit an all-time high above $1 920/oz, before correcting near the end of the period. Bullion prices have since bounced back, trading at $1 796/oz on Monday.

Reno-based Allied Nevada said production at Hycroft was impacted by delays in the delivery of mining and processing equipment.

During the quarter, the company completed a feasibility study for building a new mill at Hycroft that will produce a yearly average of 616 800 oz of gold and 25.9-million ounces of silver from 2015 to 2024.

It also hiked the resource at Hycroft to 17-million gold-equivalent ounces.

Providing outlook for 2011, Allied Nevada said the equipment delivery delays at Hycroft meant it was 15 000 oz behind schedule, and as a result cut its full-year guidance to 100 000 oz, with cash costs now anticipated to be at the higher end of the previously stated range of $450/oz to $490/oz.

The company is quoted on the TSX and Amex.
 

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