GUYANA Goldfields Inc. has set a target of between 145,000-160,000 ounces of gold for production in 2019.

The Aurora gold mine, which is operated by the company, produced more than 500,000 ounces of gold in just over three years of commercial production, the company said in a release.

The company said, “despite some tough challenges,” it remains confident of a bright future. “We have identified and initiated a number of cost savings programmes that will lead to improved operational efficiency.”

The firm has strengthened its leadership team, streamlined organisational structure and initiated partnership arrangements with key contractors and suppliers.

“We continue to believe that there is considerable, untapped potential for additional, high-quality ounces in this system.  We expect to access high-grade zones beneath Mad Kiss with our underground exploration development later this year and will look to secure our permit for commercial underground production in a timely manner,” CEO of Guyana Goldfields, Scott Caldwell said.

In a separate release, Guyana Goldfields noted that for 2018, it produced 150,450 ounces of gold, a figure which represents a decrease of 10,050 ounces compared to production from 2017.

It was noted that the daily average mining rate improved by 50 per cent in order to meet the increase in stripping ratio for its Rory’s Knoll open pit development.
“For the full year, the mill processed an average of 7,000 tpd, a 15 per cent increase compared to an average of 6,100 tpd in the prior year,” the company said.

The firm’s phase two mill expansion was commissioned in February this year and is expected to further improve recovery by up to two per cent, throughput by 10 per cent and allow for 75 per cent redundancy of the primary crusher.

In terms of financial gains, Guyana Goldfields said earnings from mine operations were $36.6 million for 2018, a decline of $21.6 million from 2017.
It said this decline was largely driven by increased mining and processing volumes, lower gold ounces sold from lower average head grade and increased production costs.
“These declines in production costs were offset by lower deprecation and lower cost of sales adjustment,” the release stated.

At the end of 2018, Guyana Goldfields cash balance stood at $82M and total debt reduced to $40M, a decrease of $60M as at the end of 2017.

According to Guyana Goldfields, the firm elected not to make the voluntary accelerated debt repayment of $20M during the fourth quarter of 2018, and this provided it with additional short-term liquidity.

“Under the current terms of the loan agreement, the company is scheduled to make eight additional quarterly payments of $5 million to retire the debt over the next two years. As we open a new chapter at Aurora, we will continue to focus on improving efficiency and maximising operating cash flow, while maintaining our admirable safety record, including our achievement earlier this month of one million-person hours without a lost time injury,” Caldwell said.

Guyana Goldfields Inc. is a Canada-based, mid-tier gold producer, primarily focused on the exploration, development and operation of gold deposits in Guyana, South America.