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Anaconda Mining announces Q4 and full year 2020 production results, achieves record metal revenue of $41.5 million
TORONTO, ON / ACCESSWIRE / January 14, 2021 / Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX:ANX)(OTCQX:ANXGF) is pleased to announce production results and certain financial information for the three months and year ended December 31, 2020. All dollar amounts are in Canadian Dollars. The Company expects to file its full audited annual financial statements and management discussion and analysis by March 2, 2021.
2020 Highlights
2021 Guidance
Anaconda is projecting to produce between 18,000 and 19,000 ounces of gold in 2021. Mill feed in 2021 will be predominantly from mining at the Argyle Gold Mine, with supplemental ore feed from Pine Cove and marginal stockpiles, although the Company continues to investigate opportunities to defer marginal ore feed. Operating cash costs per ounce1 for the full year are expected to be between $1,425 and $1,475 per ounce of gold sold (US$1,100 - US$1,145 at an approximate exchange rate of 0.775), reflecting the relatively lower grade profile of Argyle in the earlier part of the mine plan, the impact of processing lower grade marginal ore, and increased trucking costs to the Pine Cove Mill from Argyle. Mine grade will increase significantly towards the end of 2021 and into 2022 at Argyle which, along with a decrease in the stripping ratio, will lead to a marked decrease in operating cash costs per ounce sold. Furthermore, any opportunity to displace marginal ore will positively impact operating costs on a per ounce sold basis.
The Company expects to incur $6,600,000 of sustaining capital expenditures for the mine and mill operations in 2021, which includes approximately $3,800,000 of mine development for pushbacks at the Argyle Gold Mine, which will also support ongoing mining in 2022. Looking further ahead at Point Rousse, the Company continues to infill drill the Stog'er Tight extension and advance baseline permitting activities, given its strong potential to extend the life of mine of the Point Rousse operation.
In addition, milestones and catalysts for growth in 2021 include:
Operating Statistics for the Three Months and Year Ended December 31, 2020
During the fourth quarter of 2019, the Company processed a bulk sample for Goldboro (the "Bulk Sample") at its Pine Cove Mill (see press release dated January 16, 2020). Fourth quarter and annual 2019 mill statistics are presented both including the Bulk Sample, and on a Point Rousse stand-alone basis.
Excluding the operating results from the Bulk Sample, the Pine Cove Mill Statistics specifically for production from the Point Rousse operation are as follows:
Operations Overview for the Year Ended December 31, 2020
Anaconda sold 17,918 ounces of gold in 2020 to generate record metal revenue of $41.5 million at an average realized gold price1 of C$2,316 (US$1,728) per ounce, representing a 41% increase in metal revenue compared to 2019 due to a combination of significantly higher gold prices and higher gold production. During the fourth quarter, the Company sold 3,970 ounces of gold from production from its Point Rousse operations, generating metal revenue of $10.0 million at an average realized gold price1 of C$2,503 per ounce (US$1,921).
The Point Rousse operation produced 18,268 ounces of gold during 2020, achieving annual guidance of 18,000 to 19,000 ounces, and representing a 13% increase over 2019 as a result of higher throughput and stronger recoveries. Production was predominantly from the Pine Cove Pit, where mining ceased in early Q4 2020 and mill production was maintained from the established stockpile of 100,000 tonnes. In 2021, production will be focused exclusively at Argyle, with mill throughput supplemented with marginal ore from the Pine Cove Pit.
Check out full press release here.
TORONTO, ON / ACCESSWIRE / January 14, 2021 / Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX:ANX)(OTCQX:ANXGF) is pleased to announce production results and certain financial information for the three months and year ended December 31, 2020. All dollar amounts are in Canadian Dollars. The Company expects to file its full audited annual financial statements and management discussion and analysis by March 2, 2021.
2020 Highlights
- Anaconda produced 18,268 ounces of gold in 2020 from its Point Rousse operation, achieving its annual guidance of 18,000 to 19,000 ounces, predominantly from Pine Cove Pit mine production, with the processing of ore from the Argyle Gold Mine commencing in late Q4 2020.
- Anaconda sold 17,918 ounces of gold in 2020, generating record metal revenue of $41.5 million at an average sales price1 of C$2,316 (US$1,728) per ounce of gold. As at December 31, the Company also had over 525 ounces in gold doré inventory, which was subsequently sold in January.
- The Pine Cove Mill achieved annual throughput of 459,085 tonnes during 2020, just short of its annual record throughput, representing a 14% increase over 2019, when the mill was impacted by unplanned maintenance.
- Mine operations moved 512,028 tonnes of ore during the year, including 103,557 tonnes of ore from Argyle in Q4 2020, at an average grade of 1.50 grams per tonne ("g/t") and at a strip ratio of 3.8 waste tonnes per ore tonne.
- The Pine Cove Pit has now transitioned to a fully permitted in-pit tailings facility, with over 10 years of capacity at current throughput rates.
- The Company announced the full exercise of share purchase warrants expiring on January 10, 2021, resulting in proceeds of $3,526,895 and the issuance of 7,837,544 common shares.
- As of December 31, 2020, the Company had a cash balance of $14.6 million and preliminary working capital1 of $13.8 million. The Company's current loan balance as of December 31, 2020 was $1.9 million and the non-current portion was $0.8 million.
2021 Guidance
Anaconda is projecting to produce between 18,000 and 19,000 ounces of gold in 2021. Mill feed in 2021 will be predominantly from mining at the Argyle Gold Mine, with supplemental ore feed from Pine Cove and marginal stockpiles, although the Company continues to investigate opportunities to defer marginal ore feed. Operating cash costs per ounce1 for the full year are expected to be between $1,425 and $1,475 per ounce of gold sold (US$1,100 - US$1,145 at an approximate exchange rate of 0.775), reflecting the relatively lower grade profile of Argyle in the earlier part of the mine plan, the impact of processing lower grade marginal ore, and increased trucking costs to the Pine Cove Mill from Argyle. Mine grade will increase significantly towards the end of 2021 and into 2022 at Argyle which, along with a decrease in the stripping ratio, will lead to a marked decrease in operating cash costs per ounce sold. Furthermore, any opportunity to displace marginal ore will positively impact operating costs on a per ounce sold basis.
The Company expects to incur $6,600,000 of sustaining capital expenditures for the mine and mill operations in 2021, which includes approximately $3,800,000 of mine development for pushbacks at the Argyle Gold Mine, which will also support ongoing mining in 2022. Looking further ahead at Point Rousse, the Company continues to infill drill the Stog'er Tight extension and advance baseline permitting activities, given its strong potential to extend the life of mine of the Point Rousse operation.
In addition, milestones and catalysts for growth in 2021 include:
- Ongoing production and free cash flow generation from Argyle throughout 2021.
- Infill drilling at Stog'er Tight deposit to complete an updated Mineral Resource.
- Final drill results from the Goldboro Gold Project ("Goldboro") infill drill program in Q1 2021.
- An updated Mineral Resource for the Goldboro Gold Project in Q1 2021.
- Ongoing initial 10,000 metre drill program at the Tilt Cove Gold Project in Q1 and Q2 2021.
- Drill Program at the Lower Seal Harbour Property in Nova Scotia, proximal to Goldboro.
- Completion of the Goldboro Feasibility Study in Q4 2021.
Operating Statistics for the Three Months and Year Ended December 31, 2020
During the fourth quarter of 2019, the Company processed a bulk sample for Goldboro (the "Bulk Sample") at its Pine Cove Mill (see press release dated January 16, 2020). Fourth quarter and annual 2019 mill statistics are presented both including the Bulk Sample, and on a Point Rousse stand-alone basis.
| Three months ended December 31, 2020 | Three months ended December 31, 2019 | Year ended December 31, 2020 | Year ended December 31, 2019 | |
| Mine Statistics | ||||
| Ore production (tonnes) | 110,455 | 123,302 | 512,028 | 413,139 |
| Waste production (tonnes) | 453,859 | 518,698 | 1,964,689 | 1,771,408 |
| Total material moved (tonnes) | 564,314 | 642,000 | 2,476,717 | 2,184,547 |
| Waste: Ore ratio | 4.1 | 4.2 | 3.8 | 4.3 |
| Mill Statistics (including Bulk Sample in 2019) | ||||
| Availability (%) | 91.5 | 97.1 | 96.3 | 89.6 |
| Dry tonnes processed | 107,257 | 110,474 | 459,085 | 401,499 |
| Tonnes per day ("tpd") | 1,274 | 1,236 | 1,302 | 1,228 |
| Grade (grams per tonne) | 1.39 | 1.49 | 1.42 | 1.52 |
| Recovery (%) | 86.8 | 83.1 | 87.4 | 82.3 |
| Gold Ounces Recovered | 4,171 | 4,411 | 18,268 | 16,181 |
| Gold Ounces Sold | 3,970 | 4,209 | 17,918 | 17,265 |
| Dry tonnes processed | 107,257 | 100,689 | 459,085 | 391,714 |
| Tonnes per day ("tpd") | 1,274 | 1,318 | 1,302 | 1,248 |
| Grade (grams per tonne) | 1.39 | 1.27 | 1.42 | 1.46 |
| Recovery (%) | 86.8 | 84.0 | 87.4 | 82.8 |
| Gold Ounces Produced | 4,171 | 3,441 | 18,268 | 15,211 |
| Gold Ounces Sold | 3,970 | 3,306 | 17,918 | 16,362 |
Anaconda sold 17,918 ounces of gold in 2020 to generate record metal revenue of $41.5 million at an average realized gold price1 of C$2,316 (US$1,728) per ounce, representing a 41% increase in metal revenue compared to 2019 due to a combination of significantly higher gold prices and higher gold production. During the fourth quarter, the Company sold 3,970 ounces of gold from production from its Point Rousse operations, generating metal revenue of $10.0 million at an average realized gold price1 of C$2,503 per ounce (US$1,921).
The Point Rousse operation produced 18,268 ounces of gold during 2020, achieving annual guidance of 18,000 to 19,000 ounces, and representing a 13% increase over 2019 as a result of higher throughput and stronger recoveries. Production was predominantly from the Pine Cove Pit, where mining ceased in early Q4 2020 and mill production was maintained from the established stockpile of 100,000 tonnes. In 2021, production will be focused exclusively at Argyle, with mill throughput supplemented with marginal ore from the Pine Cove Pit.
Check out full press release here.