Elgin Mining Reports Second Quarter 2014 Results
Press Release –
Vancouver, British Columbia, August 12, 2014 – Elgin Mining Inc. (“Elgin Mining” or the “Company”) (TSX: ELG) reports its financial and operational results for three and six months ended June 30, 2014. Elgin Mining owns and operates the Björkdal gold mine (“Björkdal Mine”) in Sweden, and holds the past-producing Lupin gold mine (“Lupin”) and the Ulu gold property in Nunavut, Canada. All figures are in United States dollars ($ or USD) unless otherwise indicated.
A copy of the Company’s financial statements and Management’s Discussion and Analysis (“MD&A”) can be viewed on the Company’s website at www.elginmining.com or on SEDAR at www.sedar.com.
Second Quarter 2014 Financial and Operational Highlights
- Gold production of 12,098 ounces, an increase of 12% from first quarter gold production of 10,812 ounces;
- Cash cost of $993 and all-in sustaining cost (“AISC”) of $1,197 per gold ounce produced;
- Cash cost of $1,009 and AISC of $1,214 per gold ounce sold;
- Cash flow from operating activities was $3.4 million, which decreases to $2.5 million when non-cash working capital movements are excluded;
- Cash improved by $1.5 million during the quarter after debt repayments of $0.3 million;
- Open pit (“OP”) operations performed well in the quarter with head grades remaining strong and above plan due to the Company’s continuing grade control programs and mine planning efforts;
- Underground (“UG”) operations have improved from the previous quarter with an increase in both UG head grades and gold production from the previous quarter’s results. However, UG head grades, ore production and unit mining costs remained below target for the quarter as results were impacted by repairs to mobile equipment used in stoping activities, and from challenging ground conditions which resulted in delays in full production from one of the main stope areas, which have now been rectified. Higher labour and equipment productivity, and better head grades are predicted for the last half of 2014 as the Company continues to resolve these issues over the third quarter;
- The process plant continues to operate well with minimal stoppages and sustained increased daily throughput without any loss in the plant’s metallurgical recovery rate due to improvements made to the plant’s flotation and other circuits since the start of the year; and
- Permit application to expand the plant’s annual throughput limit from 1.3 million tonnes to 1.5 million tonnes was filed in late May 2014 with receipt of the expansion permit anticipated by the end of 2014.
Re-affirmation of Björkdal Mine 2014 Guidance
Gold production in H1-2014 totalled 22,910 ounces at a per ounce cash cost of $1,019 and per ounce AISC of $1,237 on a gold produced basis.
The Company anticipates increased UG gold production in the second half of 2014 from improved labour and equipment productivity, and from higher head grades as ground and sequencing issues experienced in the first half of the year are rectified. These changes will lead to lower per tonne operating costs and along with a weaker Swedish krona (“SEK”), will have a positive effect on the Company’s reported gold production costs for the last half of 2014.
Read more: http://www.elginmining.com/s/NewsReleases.asp?ReportID=669315&_Type=News-Releases&_Title=Elgin-Mining-Reports-Second-Quarter-2014-Results
439 total views, 2 views today