TORONTO (miningweekly.com) – Nevsun Resources, which owns the Bisha gold mine in Eritrea, made $78.3-million in net after-tax earnings in the last three months of 2011, about 12% lower than the previous quarter’s profit, as output and prices shrunk.
The company produced 101 000 oz of the precious metal in the fourth quarter, compared with 110 000 oz in the September quarter, as a result of lower grades and recoveries.
The Bisha mine produced a total 379 000 oz of gold in 2011, having reached commercial production in February of that year.
Toronto- and New York-listed Nevsun last month slashed its 2012 gold output guidance by half, saying it had overestimated parts of its Eritrean mine’s resources.
The company on Wednesday reiterated its 2012 restated guidance of 190 000 oz and 210 000 oz as a result of the error.
The miner’s stock has suffered in the wake of the lower 2012 production target, shedding just under half its value since its close on February 6 – the day before it made the announcement.
Nevsun, which reported after-tax income of $250-million for 2011, had $347-million in cash and equivalents at the end of December, it said. Revenues for last year were $548-million.
Earlier this week, the company announced plans to buy back up to four-million shares because management believes the stock is undervalued.
Nevsun said it will continue with its $100-million copper phase expansion at Bisha, set to start producing in mid-2013.