TSXV:MGR.H - Post by User
Comment by
Bobwinson Apr 09, 2021 11:26am
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Post# 32966591
RE:RE:RE:100 000 ounce of gold 2020 !
RE:RE:RE:100 000 ounce of gold 2020 !Magna has become a producer. 9 month financials published today. Magna has converted to a fye of 12/31 so this is the 2020 annual report. 2021 will be a full year ending on 12/31/21. Shows US$37million in revs and a loss of 5.7million. 3 months ending 12/31/20 produced 7,485oz of gold at AISC of $2542/oz. For the whole 9 months, produced 19,295oz at AISC of $2116. Obviously AISC is too high. Prefeasibility Study done in 8/20 projected costs at $1200/oz.
No commentary in MD&A explaining high costs or how they may be reduced in the future. There was lower grade material processed from stockpiles that seems to be decreasing and higher grade material from underground is increasing. But cutting costs in half is a tall order. We'll see what Q1 results from period ending 3/31/21 show in a few weeks. San Francisco was always a low grade open pit mine but historically profitable. With higher gold prices, mine should be able to operate profitably but we need to see fairly dramatic progress in future qtrs.
Company gave guidance of 55,000 to 65,000 oz of gold in 2021. They expect mine to be fully commissioned by the end of Q2.
As always, startups are tough. Projections don't always become reality. However this mgmt team has credibility. They've done it before at this mine. They built it, they ran it and now they're back. Looking forward to improving results in Q1.