TSX-listed Roxgold states its process plant expansion at Bagassi South, which will increase mill capacity nearly 50%, is on track to be complete by year end.
“With the solid operating results achieved at Yaramoko this quarter, we are confident of achieving the upper-end of our 2018 full year guidance range and expect to be at the lower-end of our cost guidance,” says John Dorward, President and CEO of Roxgold.
“We generated strong cash flow this quarter and have maintained our robust cash balance while advancing our growth project.”
“At Bagassi South, the project has been progressing well during the quarter and first development ore has been delivered to the ROM pad in late October on schedule.
“The process plant expansion, which will increase mill capacity nearly 50%, is also continuing to progress well. With all materials now on site, the expansion is on track to be completed by the end of the year.”
Roxgold quarterly highlights
- Achieved production of 30,532 ozof gold in Q3 2018 (28,410 ounces in Q3 2017) and YTD 2018 production of 106,812 oz (91,970 oz in YTD 2017)
- Realized a record quarterly processing throughput of 78,357 tonnes – 15% above nameplate capacity
- Reduced operating costs per tonne processed by 7% in Q3 2018 and a 6% reduction in operating cost p/t processed for YTD 2018, and
- Achieved a cash operating cost of $454 per oz produced and all-in sustaining costs of $788 per ounce sold and $409 per oz produced and $716 per oz sold for the three and nine-month periods ended September 30, 2018, respectively
- Higher EBITDA of $16.9 million in Q3, 2018 ($14.3 million in Q3 2017) and $68.9 million for YTD 2018 ($44.6 million for 2017 YTD)
- Achieved strong EBITDA margin of 45% in Q3 2018 (40% in Q3 2017) and 50% for YTD 2018 (39% for 2017 YTD)
- Generated cash flow from mining operations totaling $18.6 million in Q3, 2018 ($0.05 per share) and $75.1 million ($0.20 per share) for YTD 2018
- Maintained a strong balance sheet with cash on hand of $71.2 million; and
- Generated a strong return on equity of 22%
- Delivered first development ore from Bagassi South in October 2018 on schedule
- Received all permits and decrees required for Bagassi South mining and the process plant expansion; and
- Operating seven drill rigs currently at Yaramoko targeting extensions to the 55 Zone and regional exploration targets – six from surface and one from underground.