TSX-listed Roxgold increased its production to 132 656 oz in the year ended December 31, 2018, from 126 990 oz in 2017, exceeding the upper limit of its guidance range, which was capped at 130 000 oz.
The company sold 133 303 oz of gold, generating $169-million in sales, compared with the 126 555 oz it sold for $159-million in 2017. Production was generated from the company’s key asset, the Yaramoko gold mine, located in Burkina Faso.
Further, Roxgold managed to achieve a below-guidance cash operating cost, at $426/oz produced for a total cash cost of $485/oz sold; and an all-in sustaining cost (AISC) of $740/oz sold, which was at the bottom end of the guidance range.
Production aided higher earnings before interest, taxes, depreciation and amortisation of $82-million, compared with $67-million in 2017, with a 49% margin, compared with a 42% margin in 2017.
During the year, the company completed its Bagassi South expansion project, at the Yaramoko mine, and announced its intention to acquire the Séguéla gold project in Côte d'Ivoire from Newcrest Mining.
“In looking ahead to 2019, we expect to have a strong year in which we are forecasting production to be between 145 000 oz and 155 000 oz of gold. We also look forward to adding to our growth pipeline from our on-going exploration activities at Yaramoko and through our Séguéla gold project acquisition,” said CEO and president John Dorward.
The company set its cash operating cost guidance at between $440/oz and $470/oz, while it set its AISC at between $765/oz and $795/oz.
Roxgold set an exploration budget of between $10-million and $12-million for 2019.