Newmont beats quarterly profit estimates on higher gold production
The world's biggest gold miner benefited from robust production and easing costs.
Following the publication of modest 2018 results, when gold production barely reached the lower end of a guidance range of 35,000 to 40,000 ounces, Fiore Gold (TSXV: F) reported that its Pan mine in Nevada is expected to perform better in 2019.
This week, the company issued a press release revealing that the open-pit operation located near the town of Eureka produced 9,765 ounces of gold in the first fiscal quarter of the new year.
Such production represents a 47% increase over the first fiscal quarter of 2018. Mined ore production was 15,196 ore tons per day.
Gold sales, on the other hand, were 9,744 ounces at an average realized price of $1,232 per ounce, Fiore reported.
To grow sales in 2019 based on an estimated production of 6,000-7,000 additional gold ounces, the Toronto-based miner announced that it will install a $3.5-million primary crushing circuit at Pan. In management’s view, such a move will increase both the overall gold recovery and the rate of gold recovery.
“In addition to higher gold production through increased gold recoveries, the crushing circuit will greatly improve the efficiency of the mine by allowing us to mine to stockpiles,” Tim Warman, Fiore’s CEO, said in the media brief. “Our analysis and the decision to add the crushing circuit was based only on the current life of mine, so any additions to the mine life have the potential to significantly increase the economic benefits of the crusher.”
Pan is currently a Run-of-Mine operation where blasted ore is hauled from the pit and placed directly on the leach pad.
