VANCOUVER (miningweekly.com) – TSX-listed Brio Gold saw its equity rise an impressive 12.36% to C$2 apiece on Wednesday, despite the Brazil-focused miner reporting a third-quarter headline loss of $6.8-million, or $0.07 a share, lower than average analyst forecasts calling for adjusted earnings of nil per share.
Production at the company’s three producing mines was 7% lower at 42 913 oz of gold, which resulted in 8% lower sales year-on-year at 43 228 oz of gold.
Revenues from mining operations were $54.1-million in the third quarter, compared with $60.6-million for the comparable period in 2016, owing to lower ounces sold.
The average realised gold price fell 3% to $1 267/oz, while all-in sustaining costs (AISC) rose 6% to $1 228/oz produced.
At Fazenda Brasileiro, third-quarter production was 7% lower than the same period last year, mainly owing to lower feed grades. The feed grade significantly improved month-over-month within the quarter. The company expects grade to continue to show improvements in the fourth quarter with production forecast to increase and provide the strongest quarter for Fazenda Brasileiro in 2017.
The RDM mine was put on care and maintenance for 51 days during the quarter due to a lack of water as a result of continued dry season conditions.
At the Pilar mine, lower overall grade was a result of increased production from the lower-grade Maria Lazara deposit and increased development tonnes at the main Pilar mine, which led to increased overall dilution. Tonnes mined and processed were either in line with or exceeded plan for all the operating mines except for the RDM mine, but the lower feed grades increased the per ounce costs during the quarter.
The company was formed in 2014 by Yamana Gold to monetise its investment in certain assets in Brazil, including the Fazenda Brasileiro mine, the Pilar mine and the Santa Luz mine and related exploration rights, all of which were contributed by Yamana. On December 23, 2016, Brio became a standalone public company. Yamana continues to be a significant shareholder of Brio, holding about 56% of the issued and outstanding shares as at September 30.
Brio cut its full-year consolidated gold guidance to a range of 183 000 oz to 198 000 oz of gold, from 198 000 oz to 223 000 oz previously, while AISC guidance increased to a range of between $1 115/oz and $1 125/oz, up from $995/oz to $1 015/oz previously.