“As a result of the strong operational performance, we generated over $47 million of free cashflow before growth expenditures in the second half of the year,” says President and CEO, John Dorward.
“Yaramoko had an exceptional last quarter with record production and plant throughput averaging over 30% of nameplate capacity.
“This led to full year production being within 2% of the low end of production guidance mainly due to the timing of mining high grade stopes in December.” said John Dorward, President and CEO of Roxgold.
“As a result of the strong operational performance, we generated over $47 million of free cashflow before growth expenditures in the second half of the year.
“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 Project, with an updated resource expected early this year and a Preliminary Economic Assessment on track for early second quarter.
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“Meanwhile, our team continues to pursue additional growth opportunities through our ongoing organic exploration programs while keeping our eyes open for further external opportunities.”
In 2019, the Yaramoko gold mine produced 479,929 tonnes at 8.90 g/t Au with stoping tonnes increasing throughout the year.
Annual processing throughput was 466,157 tonnes at 9.5 g/t Au with overall plant availability of 96%.
Throughput levels increased quarter over quarter during the year, driven by the additional ore feed from Bagassi South, as well as ongoing optimization and improved operating performance in the plant.
On a quarterly basis, at the 55 Zone, 97,775 tonnes of ore were mined at 10.41 grams per tonne (“g/t Au”) and 1,568 metres (“m”) of development was completed.
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Approximately 71% of the ore mined at 55 Zone came from stoping activities with five open stopes available at the end of the quarter.
Decline development in the 55 Zone reached the 4774 level, approximately 544 metres below surface, with ore development occurring on the 4811 and 4828 levels.
At Bagassi South, 42,807 tonnes of ore were mined at 5.5 g/t Au and 1,584 metres of development were completed. Grade was lower than planned due to the timing of stoping sequences and delayed access to higher grade stopes.
Development ore contributed approximately 50% of the ore mined while stoping activities have increased with three open stopes available at the end of the quarter.
The development of the decline reached the 5095 level and stoping operations have commenced on the 5180 and 5146 levels.
During the fourth quarter, the plant processed a record 131,439 tonnes at an average head grade of 9.8 g/t Au. Plant availability was 98.7% and overall recovery remained high at 98.3%.
With an average daily throughput of 1,429 tpd, the Yaramoko plant has continued to outperform, exceeding the nameplate capacity of 1,100 tpd by approximately 30% in the quarter.
During the second half of the year, Roxgold generated strong free cashflow (before growth spend) of over $47 million increasing its cash balance from $19.4 million to approximately $41.8 million as of December 31, 2019.
Roxgold finished the year with a net cash position of over $16 million (cash balance of approximately $41.8 million and long-term debt face value balance of $25.6 million).