2019 Outlook - should see a pop tomorrow Roxgold Exceeds 2018 Production Guidance and Provides 2019 Operational Outlook
TORONTO, Jan. 21, 2019 /PRNewswire/ - Roxgold Inc. ("Roxgold" or "the Company") (TSX: ROXG) (OTC: ROGFF) is pleased to announce its preliminary production results for the fourth quarter and full year of 2018, and its operational outlook for 2019. All amounts are in U.S. dollars unless otherwise indicated.
2018 Highlights
- Gold production of 132,656 ounces in 2018, exceeding the increased guidance of 120,000 to 130,000 ounces
- Gold production of 25,845 ounces during the fourth quarter at an average mill feed grade of 10.8 grams per tonne ("g/t Au") achieving 98.2% gold recovery
- Sold 133,030 ounces of gold for annual gold sales totalling approximately $169.2 million
- Cash operating cost1 per ounce and all-in-sustaining cost1 per ounce expected to be at or below the lower end of the guidance range of $450 – $475 and $740 - $790 respectively
- Strong balance sheet with cash balance of approximately $60 million2 and long-term debt face value balance of $38 million2 as of December 31, 2018
- Strong safety record maintained with a 12-month rolling lost time injury frequency rate ("LTIFR") of 0.39 per one million hours worked
2019 Outlook
- Gold production is expected to be between 145,000 and 155,000 ounces in 2019
- Cost estimates for 2019:
- Cash operating cost (per ounce produced)1: $440 - $470
- All-in sustaining cost (per ounce sold)1: $765 - $795
- Exploration budget: $10 - $12 million
John Dorward, President and Chief Executive Officer of Roxgold commented: "In 2018, Yaramoko continued to outperform by exceeding our annual production guidance and we expect to be at or below our cost guidance for the second consecutive year. With the recent under budget completion of the Bagassi South project, Yaramoko's second high-grade underground mine, we expect to have a strong year in 2019 in which we are forecasting production to be between 145,000 and 155,000 ounces of gold. The expanded processing plant has ramped up extremely well and we recently saw record throughput of 1,231 tonnes per day, or 12% above nameplate capacity. We also continue to remain focused on adding value by actively pursuing further organic growth opportunities through our exploration programs where we have several drilling activities currently underway."
2018 Preliminary Fourth Quarter and Fiscal Year Key Metrics3
| | | | | | |
| | Q1 2018 | Q2 2018 | Q3 2018 | Q4 2018 | 2018 |
| Gold ounces produced | 40,452 | 35,828 | 30,532 | 25,845 | 132,656 |
| Gold ounces sold | 40,050 | 35,320 | 31,400 | 26,260 | 133,030 |
| Gold Sales (000's) | $53,226 | $45,787 | $37,890 | $32,269 | $169,172 |
| Average realized selling price (per ounce) | $1,329 | $1,296 | $1,207 | $1,229 | $1,272 |
| Total Development (metres) | 1,437 | 1,124 | 1,479 | 1,785 | 5,825 |
| Ore mined (tonnes) | 88,607 | 86,831 | 87,975 | 88,277 | 351,689 |
| Ore processed (tonnes) | 71,576 | 75,417 | 78,357 | 82,241 | 307,591 |
| Head grade (g/t) | 16.8 | 14.4 | 12.3 | 10.8 | 13.5 |
| Recovery (%) | 99.0 | 98.8 | 98.5 | 98.2 | 98.6 |
In 2018, the Yaramoko gold mine produced 351,689 tonnes at 11.7 g/t Au with stoping tonnes increasing over the course of the year. Bagassi South mine operating physicals have been included in the table above in total development metres and ore mined.
Throughput was 307,591 tonnes at 13.5 g/t Au with operating time of 95.4% for the year. Throughput levels increased quarter over quarter during the year, driven by ongoing optimization and improved operating performance in the plant, resulting in processing approximately 14% above nameplate capacity of 270,000 tonnes per annum ("tpa"). On December 13, 2018, the Company announced the practical completion of the process plant expansion which increased mill capacity by nearly 50% from 270,000 tpa to 400,000 tpa, which has been consistently achieved since practical completion. Metallurgical performance remained consistently high with an overall recovery of 98.6% for the period.
Roxgold's closing cash balance was approximately $60 million2 and long-term debt face value balance of $38 million2 as of December 31, 2018.
Roxgold expects to release its fourth quarter and full year 2019 financial results on March 26, 2019. The Company's 2018 cash operating cost1 per ounce and all-in-sustaining cost1 per ounce will be reported at that time and are expected to be at or below the lower end of the guidance range.
Health and Safety in 2018
There were no lost time injuries ("LTI") during the fourth quarter and one LTI occurrence in the full calendar year for 2018. The 12-month rolling LTIFR is 0.39 per one million hours worked.
2019 Operational Outlook
Roxgold anticipates its 2019 annual gold production at Yaramoko to be between 145,000 and 155,000 ounces in 2019.
| 2019 Estimated Costs |
| Cash operating cost (per ounce produced)1 | $440 - $470 |
| All-in sustaining cost (per ounce sold)1 | $765 - $795 |
| Exploration budget | $10 - $12 million |
In 2019, Yaramoko is expected to produce stronger quarters in Q3 and Q4 due to the Bagassi South mine commencing stoping operations during the second half of the year.