…revenues pegged at $US194.2M

The Guyana Goldfields said in its inaugural year of production, the Aurora Gold Mine performed solidly delivering 151,600 ounces of gold production, in line with the company’s upwardly revised guidance of 140,000 to 160,000 ounces.

Revenues totalled US$194.2 million, earnings from mine operations came in at US$71.1 million and cash flow from operations totalled US$76.5 million or US$0.47 per diluted share, the Canadian firm said in a release. According to the company, cost of sales (including royalty and depreciation) for the year averaged US$789 per ounce of gold sold, while cash costs (before royalty)¹ trended down through 2016 and averaged US$496 per ounce of gold sold for the year. All-in sustaining costs (“AISC”)¹ for the year were US$738 per ounce of gold sold, slightly below the company’s revised guidance range of US$740 to US$760 per ounce.

The company said too that it completed an equity financing and debt restructuring during the year resulting in a much strengthened balance sheet with US$73.2 million of cash and a debt balance of US$78.4 million as at year end. The Company reported an unrealised gain of US$20.7 million for the year on its 7.2% interest in SolGold Plc (“SolGold”), which owns an 85% interest in the Cascabel Copper Gold Porphyry project located in Ecuador. The unrealised gain as of February 22, 2017, was approximately US$48.5 million.

Noting that the Aurora Gold Mine had a particularly strong fourth quarter, the company said the mine produced 43,800 ounces of gold, an increase of 27% from 34,400 ounces in the prior quarter driven by higher grades and mill throughput. Cost of sales (including royalty and depreciation) improved for the fourth quarter to US$750 per ounce of gold sold (compared to US$811 per ounce in the prior quarter). Cash costs (before royalty)¹ of US$446 per ounce and AISC¹ of US$678 per ounce in the fourth quarter were both new records for the company.

Additionally, the company said it generated $23.5 million of operating cash flow during the fourth quarter, an increase of 33% from the previous quarter and also the strongest quarter for cash flow generation to date.
Scott Caldwell, President & CEO stated, “2016 was a transformational year for Guyana Goldfields with the Company successfully transitioning to the gold producer ranks. We achieved our upwardly revised guidance and ended the year with our best quarter across all key operating and cost metrics.

Importantly, the solid results were achieved without one lost time injury. Looking ahead to 2017, and with the backing of a strong balance sheet, we will be focused on driving further cost efficiencies, executing on Phase 1 of our mill expansion to take our annual production above 200,000 ounces in 2018 and ramping up our exploration efforts after a lengthy hiatus.”