Premier Gold Mines Reports 2018 Third Quarter Results
Press Release
PREMIER GOLD MINES LIMITED (TSX: PG) (“Premier”, “the Company”) is pleased to announce operating results for the three months ended September 30, 2018. The Company previously released its production results for the third quarter in a news release dated October 16, 2018.
Premier is a gold-producer and respected exploration and development company with high-quality precious metal projects in proven, accessible and safe mining jurisdictions in Canada, the United States, and Mexico. Premier’s team is focused on creating a low-cost, mid-tier gold-producer from its two producing gold mines and two advanced-stage, multi-million ounce, development projects.
2018 Third Quarter Highlights
- Consolidated production of 20,100 ounces of gold and 89,512 ounces of silver
- Cash costs1 of $858 per ounce of gold sold
- AISC1 of $1,008 per ounce of gold sold
- Revenue of $27.3 million
- Mine operating income of $2.0 million
- Net loss of $1.8 million
- Cash balance of $56.4 million
- Construction underway of two new mining centers at South Arturo
- High-grade gold discovery at the McCoy-Cove joint venture property
2018 Financial Highlights – Three months ended September 30, 2018
A total of 20,100 ounces of gold and 89,512 ounces of silver was produced during Q3 2018 compared to 26,677 ounces of gold and 85,431 ounces of silver during Q3 2017. Co-product cash costs(1) during the period were $858 and AISC(1) were $1,008 per ounce of gold sold.
The Company reported $27.3 million in revenue during the third quarter compared to $50.0 million during Q3 2017. The reduction in revenue and operating income, when compared to Q3 2017, is a result of decreased production from South Arturo where mining of the Phase 2 pit was completed in 2017 and adjustments to stope designs in a new mining zone at Mercedes. This redesign at Mercedes resulted in a development-intensive first half of the year and increased unit operating costs so far in 2018. With adjustments complete, production at Mercedes will be favorably weighted to the second half of 2018.
In keeping with its longer-term objective of increased annual production over the next several years, the Company invested $5.2 million in exploration and pre-development initiatives. This expense when factored with the reduction in mine operating income during the period contributed to the net loss of $1.8 million. Capital expenditures during the quarter totaled $8.5 million, which includes the construction of two new mining projects that have been initiated at South Arturo.
The Company closed the quarter with cash and cash equivalents of $56.4 million and inventory of 2,555 ounces of gold and 19,988 ounces of silver.
IBF4
