Gold junior Pretivm Resources has met its half-year production guidance at the Brucejack mine in north-western British Columbia, producing 187 029 oz gold and 212 935 oz silver (guidance being 150 000 oz to 200 000 oz).
The strong production performance resulted in the company increasing its cash balance by more than $72-million in the second quarter to $142.5-million, Pretivm president and CEO Joseph Ovsenek reported on Thursday.
During the second quarter, the Brucejack mine reached steady state production, and fully implemented its grade control programme, enabling it to reach production guidance. “We intend to build on this positive momentum for the remainder of the year, firmly establishing Pretivm as a premier high-grade gold producer,” Ovsenek added.
The mine produced 111 340 oz of gold in the second quarter, at an all-in-sustaining cost (AISC) of $648/oz of gold sold.
Earnings from mine operations amounted to $60.1-million, with net earnings totaling $31.1-million or $0.17 a share.
As of June 30, 2018 Pretivm has working capital of $133.2-million, excluding the current portion of long-term debt, compared to $40.6-million in December 31, 2017.
Having met its guidance, Pretivm’s total cost of sales for the half year – including production costs, depreciation and depletion, royalties and selling costs – amounted to $159-million or $864/oz gold sold and total cash cost was $657/oz gold sold.
AISC was $783/oz gold sold and well within Pretivm’s first half 2018 AISC guidance range of ($700/oz to $900/oz)
Gold production at the Brucejack mine for the second half of 2018 is expected in the range of 200 000 oz to 220 000 oz, for total 2018 gold production of 387 000 oz to 407 000 oz.
The AISC for the second half of 2018 are expected to range from $710/oz to $770/oz.