Bad and mitigating newsBad News: “We now expect Haile's third quarter gold production to be approximately 23,000 ounces, and full-year production to be around 25,000 ounces lower than 2023 guidance. We also expect Haile's third quarter cash costs and AISC to be materially higher due to the lower gold production.”
Notes:
- Last quarter, Haile gold price was $1978/ounce. Thus, we should expect Haile revenue to be about $49 million less
- 2023 guidance for Haile AISC was $1500-$1600’ounce. Assuming “materially higher” means $1700 (it was $1753 in Q4/2022), Haile’s contribution margin for Q3 will be about $278 per ounce when its average to the first 2 quarters of this year was about $200 higher. That drop in contribution will lower the bottom line by about $5 million.
Mitigating News “With strong operating performance expected at Didipio and Macraes, expected full-year consolidated gold production for the Company remains within the lower end of the original guidance range.”
First ore is coming from higher grade underground at Horseshoe.
Exploration and resource conversion at Palomino Underground and Horseshoe extension is impressive.