Scorpio Gold on track to meet guidance despite challenges
JOHANNESBURG (miningweekly.com) – After three strong quarters of production at TSX-listed Scorpio Gold’s Mineral Ridge project, in Nevada, the company remains on track to meet its full-year production guidance of 38 000 oz to 40 000 oz, but the company is facing some challenges.
In the three months ended September 30, the mine produced 9 494 oz of gold, down from the 11 228 oz produced in the third quarter of the prior year.
Revenue also declined from $14.8-million in the third quarter of 2014 to $9.3-million in the quarter under review, owing to the total cash cost of gold sold decreasing to $732/oz from the $859/oz recorded in the third quarter of last year.
“In the face of the ongoing decline in gold prices, we continue to deliver positive adjusted financial results while decreasing our total cost per ounce produced,” CEO Peter Hawley commented.
The company expected a strong fourth quarter, which would take it into the upper range of its guidance for ounces produced and the lower end of guidance for total cash cost per ounce produced.
Meanwhile, Scorpio reported adjusted net earnings of $1.1-million for the quarter, compared with $500 000 in the prior comparable period, while also reporting adjusted earnings before interest, taxes, depreciation and amortisation of $3.2-million, compared with $3.6-million in 2014.
In August, Scorpio also closed a $6-million principal amount debt financing mainly used to fund the exploration and development of Mineral Ridge’s property and for general working capital purposes. The debt bore interest at a rate of 10% a year, paid quarterly in arrears, had a three-year term and was secured against Scorpio’s assets.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...
VISIT SHOWROOM
Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
