TORONTO (miningweekly.com) – Ontario gold miner St Andrew Goldfields (SAS) reported a second-quarter net loss of C$1.1-million, or nil a share, compared with net income of C$4.4-million, or C$0.01 a share, a year earlier.
The adjusted net loss for the three months ended June 30 was C$900 000, or nil a share, compared with adjusted net earnings of C$5.6-million, or C$0.02 a share.
The company on Tuesday said the net loss and adjusted loss were impacted by the significant decrease in the gold price, as well as an increase in the noncash depreciation and depletion expense of C$3.8-million.
Gold output was in line with company expectations of 25 353 oz, a 10% year-on-year increase when compared with the 23 016 oz produced in the same period a year earlier.
Cash costs during the quarter were below guidance, with mine cash costs of $780/oz and total cash costs, including royalty costs, of $897/oz, down from $919/oz.
SAS reaffirmed its 2013 production guidance of between 95 000 oz and 105 000 oz of gold, with mine cash costs between $800/oz and $850/oz.
“In light of the drastic fluctuation in the gold price at the end of the first quarter, we revised our capital expenditure programmes, and at the end of the second quarter, we saw a substantial reduction in our overall level of spending. Grade improved at both Holloway and Hislop and we expect to transition mining at Hislop to the west pit in the third quarter,” outgoing CEO Jacques Perron said.
Perron would start “no later than” November 1 as director and CEO at base metals miner Thomspon Creek Metals, replacing outgoing chairperson and CEO Kevin Loughrey.