Roxgold Inc. T.ROXG

Pretty amazing earnings:

[McBabbles]

Highlights:

https://www.businesswire.com/news/home/20210303006002/en/

Operations

• Produced 133,940 ounces of gold at an average grade of 8.49 grams per tonne in 2020 – exceeding the upper end of annual gold production guidance of 130,000 ounces.
• Achieved cash operating costs of $579 per ounce within the annual cost guidance range of $520 to $580 per ounce.
• Processed a record annual throughput of 512,276 tonnes exceeding nameplate capacity by 27%.
• Reported an interim Mineral Reserves and Resources estimate at Yaramoko with total Proven and Probable Mineral Reserves increasing by 8% to 710,000 ounces of gold more than replacing depletion of 207,396 ounces during the period from December 31, 2018 to June 30, 2020. Measured and Indicated Mineral Resources increased 4% to 857,000 ounces of gold.

Financial

• Sold 135,310 ounces of gold for a total of $239.7 million in gold sales in 2020 (140,800 ounces1 and $196.2 million1 respectively in 2019).
• Achieved adjusted EBITDA2 of $108.8 million in 2020 compared to $83.3 million in 2019.
• Generated cash flow from mining operations2 totalling $126.2 million for cash flow from mining operations per share2 of $0.34 (C$0.45/share).
• Strong free cashflow (before growth spend)3 of $47.8 million increasing the cash balance by $20.1 million to $61.9 million.
• Strengthened the balance sheet ending the year with a cash balance of $61.9 million and net cash position of $27.3 million.
• Adjusted net income2 of $38.8 million or $0.10 per share (C$0.14/share); compared to $19.5 million or $0.05 per share (C$0.07/share) in 2019.
• Produced a mine operating margin2 of $1,079 per ounce in 2020.
• Generated a strong return on equity2 of 20% in 2020.

Growth

• Received Exploitation (mining) permit and Environmental approvals from the government of Cte d'Ivoire to develop and operate the Sgula Gold Project.
• Expanded Sgula Gold Project with discovery of the Koula deposit and an updated Mineral Resource estimate outlining total indicated mineral resources of 1,044,000 ounces of gold at 2.5 grams per tonne ("g/t") and inferred mineral resources of 370,000 ounces at 4.8 g/t.
• Commenced an infill drilling program at Koula with initial results such as 14m at 42.9 g/t from 61 metres down-hole in SGRD1000, 11m at 46.2 g/t Au from 48 metres down-hole in SGRC799, and 18m at 22.1 g/t Au from 175 metres down-hole in SGRD800, continue to emphasise the high grade nature of the deposit.
• Commenced early works at Sgula to enable a rapid ramp up to full construction in 2021 following completion of the Feasibility Study which is anticipated for completion in the second quarter of 2021.
• Repurchased a 0.3% Net Smelter Royalty on Sgula from an original property owner, exercising the right of first refusal to pre-empt an arms-length acquisition between the property owner and an international royalty company for consideration of $0.7 million cash. Sgula continues to have a 1.2% NSR held by another original property owner under similar terms including a right of first refusal and a right to acquire the remaining royalty for fair market value after a decision to mine has been made.
• Tested additional mineralization corridors at Boussoura which targeted the vein corridors to the west of Fofora Main including a new VC2 prospect with results such as 14m at 3.6g/t Au from 44m in BSR-20-RC-FFR-134, 5m at 17.0 g/t Au from 59m in BSR20-RC-FFR142 and 23m at 2.0g/t Au from 41m in BSR-20-RC-FFR-143.