RNC Announces Strong Third Quarter 2019 Results Including Production of 24,216 oz, Adjusted Earnings(2) of $8 million and Reiterates Second Half 2019 guidance
Press Release
RNC will host a call/webcast on November 6, 2019 at 10:00 a.m. (Eastern Time) to discuss the third quarter results. North American callers please dial: 1-888-231-8191, international callers please dial: (+1) 647-427-7450. For the webcast of this event click [here] (replay access information below).
TORONTO, Nov. 6, 2019 – RNC Minerals (TSX: RNX) (“RNC”) announces its financial results and review of activities for the three and nine months ended September 30, 2019 and 2018. All amounts are expressed in Canadian dollars, unless otherwise noted, and are based on the unaudited condensed interim consolidated financial statements of RNC as at September 30, 2019. For additional information please refer to RNC’s MD&A and Financial Statements for the three and nine months ended September 30, 2019.
Third Quarter of 2019 Highlights
- Third quarter 2019 consolidated gold production of 24,216 oz and AISC2 of US$1,183/oz
- Announced second half 2019 production and cost guidance of 42,000 – 49,000 ozs at AISC of US$1,150 – US$1,250 per oz
- Third quarter 2019 was the first full quarter of processing material at RNC’s 100% owned Higginsville Mill achieving a 35% reduction in milling costs (now A$29/t vs. prior $45/t while toll-milling)
- Generated adjusted earnings2 and adjusted EBITDA2 of $8.0 million and $9.1 million, respectively
- Strong quarter-end cash balance of $24.8 million and positive working capital of $12.2 million
- New management appointments to strengthen gold-focused team
- Additional high grade coarse gold discoveries announced at Beta Hunt of 1,750 oz (see RNC news release dated September 24, 2019) and 3,200 oz (see RNC news release dated October 17, 2019)
- Strong exploration results reported outside of Baloo open pit 8.7 g/t Au over 3 meters from 63 meters downhole in drill hole BLOR003 (see RNC news release dated October 15, 2019)
- Reported increased resource at Beta Hunt: 395% increase in the global measured and indicated resource to 944 koz (10,104 kt @ 2.9 g/t Au) and 195% increase in the inferred resource to 406 koz (4,109 kt @ 3.1 g/t Au) at a low discovery cost of A$7.30 per oz
- Maiden Proven and Probable gold reserve at Beta Hunt on track to be delivered in 4Q19
Paul Huet, Chairman and CEO, commented, “We are extremely pleased to announce the results of a transformational third quarter at RNC. With the completion of the Higginsville mine and mill acquisition, the third quarter of 2019 reflects the first time that RNC has processed gold ounces at its wholly owned milling facility at Higginsville.
In a very short time, RNC has evolved from a single mine producer subject to high-cost toll milling to a company with two producing mines feeding a low-cost centralized mill. The results returned during the first 90 days following the acquisition of our mill are just the beginning of continued productivity and cost improvements underway across all of our operations. Furthermore, we now have over 1,800km2 of underexplored land at Higginsville in the Kalgoorlie district and a list of priority targets at Beta Hunt. With our significantly strengthened balance sheet and quarter-end cash balance of $24.8 million, RNC is now a completely transformed company. I am very excited about our future.
Lastly, I would like to personally thank our staff and employees in Australia, who have worked tirelessly to ensure a smooth integration of our Higginsville Mine and Mill. I look forward to reporting the strong results of their efforts over the coming quarters.”
Table 1: Operational results for the periods ended September 30, 2019 and 2018
|
Three months ended, |
Nine months ended, |
|||
|
For the periods ended September 30, |
2019 |
2018 |
2019 |
2018 |
|
Gold (Beta Hunt Mine) |
||||
|
Tonnes mined (000s) |
133 |
146 |
300 |
447 |
|
Tonnes milled (000s) |
210 |
199 |
342 |
422 |
|
Gold milled, grade (g/t Au) |
2.93 |
3.92 |
3.07 |
3.34 |
|
Gold production (ounces)1 |
18,460 |
23,872 |
31,352 |
42,623 |
|
Cash operating costs (USD $/oz produced)2 |
1,032 |
955 |
1,150 |
1,157 |
|
All-in sustaining cost (AISC) (USD $/oz sold)2 |
1,252 |
1,009 |
1,257 |
1,193 |
|
Gold (HGO Mine)4 |
||||
|
Tonnes mined (000s) |
73 |
– |
73 |
– |
|
Tonnes milled (000s) |
86 |
– |
93 |
– |
|
Gold milled grade (g/t Au) |
2.34 |
– |
2.27 |
– |
|
Gold production (ounces) |
5,756 |
– |
6,051 |
– |
|
Cash operating costs (USD $/oz produced)2 |
638 |
– |
990 |
– |
|
All-in sustaining cost (AISC) (USD $/oz sold)2 |
971 |
– |
1,333 |
– |
|
Gold (HGO Processing)4 |
||||
|
Tonnes milled (000s) |
296 |
– |
348 |
– |
|
Recoveries 3 |
92% |
– |
92% |
– |
|
Gold Operations (Consolidated)4 |
||||
|
Tonnes mined (000s) |
206 |
146 |
373 |
447 |
|
Tonnes milled (000s) |
296 |
199 |
435 |
422 |
|
Gold milled, grade (g/t Au) |
2.76 |
3.92 |
2.90 |
3.34 |
|
Gold milled (ounces) |
26,219 |
25,129 |
40,469 |
45,344 |
|
Gold production (ounces) |
24,216 |
23,872 |
37,403 |
42,623 |
|
Gold sold (ounces) |
22,010 |
23,805 |
36,867 |
43,291 |
|
Average realized price (USD $/oz sold) |
1,339 |
1,205 |
1,308 |
1,252 |
|
Cash operating costs (USD $/oz produced)2 |
938 |
955 |
1,123 |
1,157 |
|
All-in sustaining cost (AISC) (USD $/oz sold)2 |
1,183 |
1,009 |
1,268 |
1,193 |
|
Adjusted EBITDA1,4 |
9,134 |
8,751 |
4,924 |
11,382 |
|
Adjusted EBITDA per share1,4 |
0.02 |
0.02 |
0.01 |
0.03 |
|
1. |
Inclusive of coarse gold of 1,233oz in Q3 2019 (6,206 oz: Q3 2018) and 1,935oz YTD 2019 (8,596oz: YTD 2018) |
|
2. |
Non-IFRS: the definition and reconciliation of these measures are included in the on-IFRS Measures section of RNC’s MD&A dated November 6, 2019. See Table 1: for full Summary of Third Quarter Financial Results. |
|
3. |
Excludes third party tolling. No third party material was processed in the third quarter of 2019. |
|
4. |
In respect of HGO, for the period from acquisition being June 10, 2019 to September 30, 2019. |
IBF4
