gold Endeavour Mining
www.123rf.com

Roxgold has released its fourth quarter and full year financial results for the period ended December 31, 2019.

“It has been a transformative year for Roxgold with the Séguéla Gold Project acquisition and recent exploration success with the new high grade discovery at Boussoura,” comments John Dorward, President and CEO of Roxgold.”

“At Yaramoko, we continued to see strong operating performance and cashflow generation. Yaramoko achieved record production of 142,204 ounces of gold and record plant throughput of 466,157 tonnes exceeding nameplate capacity by 16% in 2019.

Read more about gold

“We have also delivered on our growth objectives by successfully achieving commercial production at the Bagassi South mine in September 2019. As a result of the strong operational performance, we generated approximately $100 million in cash flow from mining operations for the year.

Read: Roxgold records exceeds nameplate capacity by 30%

“This has enabled us to strengthen our balance sheet finishing the year with approximately $42 million in cash and in a net cash position of $16 million.

“We are looking forward to an exciting 2020 as we rapidly advance the Séguéla Gold Project. The Séguéla Gold Project has become a substantial value accretive project for Roxgold, and we believe the updated mineral resource announced in January 2020 underscores the potential for this project to deliver on our aspirations of being the next West African multi-asset gold producer.

“Our next priority will be the completion of a preliminary economic assessment on the Séguéla Gold Project in the second quarter of this year. We are very excited by Séguéla’s significant potential, notably at the Ancien deposit which remains open at depth and along strike, as well as the potential within the Boulder-Agouti corridor and the additional 22 highly prospective targets that have been identified.

Read more about mining in West Africa

“At Boussoura, we look forward to growing the current mineralized footprint and setting up the potential for Roxgold’s third high grade project.”

Full year 2019 highlights:

During the year ended December 31, 2019, the Company:

  • Continued a strong safety record with no lost time injuries recorded over the last twelve months
  • Record annual production of 142,204 ounces compared to 132,656 ounces in 2018
  • Record plant throughput of 466,157 tonnes in 2019 exceeding nameplate capacity by 16%
  • Cash operating cost of $489 per ounce produced and all-in sustaining cost of $844 per ounce sold
  • Operating costs of $149 per tonne processed were 19% lower than 2018 due to increased throughput and improved efficiencies
  • Sold 140,800 ounces of gold for a total of $196.2 million in gold sales in 2019 (133,030 ounces and $169.2 million respectively in 2018)
  • Achieved an adjusted EBITDA and adjusted EBITDA margin of $83.3 million and 43% respectively in 2019 compared to $83.7 million and 49% in 2018
  • Generated improved cash flow from mining operations totalling $98.3 million for cash flow from mining operations per share of $0.27 (C$0.34/share)
  • Adjusted net income of $19.5 million ($0.05 per share) in 2019 compared to $37.4 million ($0.10 per share) in 2018
  • Produced a mine operating margin2 of $825 per ounce and a return on equity2 of 11%
  • Bagassi South achieved commercial production in September 2019
  • Completion of the Séguéla Gold Project acquisition from Newcrest Mining in April 2019
  • Reported an updated Mineral Resource Estimate for the Séguéla Gold Project in January 2020 with Total Indicated Mineral Resources increasing 7% to 529,000 ounces and Inferred Mineral Resources increasing 1,286% to 471,000 ounces
  • New high grade discovery at Boussoura, Burkina Faso

Fourth quarter 2019 highlights:

During the quarter ended December 31, 2019, the Company:

  • Record quarterly gold production of 41,162 ounces, an increase of 59% compared to 25,844 ounces produced in Q4 2018
  • Plant throughout 131,439 tonnes in Q4 2019, exceeding nameplate capacity by 30%
  • Achieved a cash operating cost of $466 per ounce produced for a total cash cost of $576 per ounce sold and all-in sustaining cost of $914 per ounce sold
  • Generated cash flow from mining operations totalling $30.7 million for cash flow from mining operations per share of $0.08