(TheNewswire)
Rouyn-Noranda, Qubec, Canada – TheNewswire - March 1, 2021
Abcourt Mines Inc. (TSX-V: ABI, “ Abcourt” or the “ Company”) (TSXV:ABI) reports its results today for the second quarter ended December 31, 2020. All amounts are in Canadian dollars unless otherwise indicated.
Highlights:
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- Revenues of $8,360,700 for the second quarter ended December 31, 2020, the best to date.
- $ 7,5M cost of sales compared to $ 6,6M for the same quarter in the previous year.
- Net profit of $ 454,583 for the second quarter compared to $ 86,630 for the previous year.
- Adjusted net profit of $ 1,381,572 versus $ 993,105 for the same period in the previous year.
- Investment of $ 1,2M in property, plant and equipment at the Sleeping Geant mine over a 6-month period, from June to December 2020.
- Gold and silver inventory of $ 1M on December 31, 2020 compared to $ 2,5M on June 30, 2020
- 2,730 ounces of gold produced 3,431 ounces of gold sold in the second quarter ended on December 31, 2020
- Cash cost of production of $ 1,961, US $ 1,518 per ounce of gold.
All in sustaining cost of $ 2,221, or US $ 1,719 per ounce of gold.
- $ 3,2M cash on December 31, 2020, compared to $ 3,7M on September 30,2020
The reduction is due mostly to the $ 1,3 M deposit made for the restoration of the Sleeping Giant mine.
Recent developments:
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- Drifting on 4 Th , 10 Th and 11 Th levels and rehabilitation work on 12 th level at Elder mine to open new ore zones.
- Rehabilitation work being done in shafts and drifts at Sleeping Giant mine and new drifts to develop new ore zones on upper levels.
This is a very good quarter, mainly due to the increase in the price of gold. Our operations generated $ 2,5M in cash. This enabled us to develop our Sleeping Giant project and to continue the development of the Elder mine.
Non-GAAP Financial Performance Measures
This press release presents certain financial performance measures, total cash costs per ounce of gold produced, sustaining costs and all-in sustaining costs per ounce of gold produced which are non-International Financial Reporting Standards (IFRS) performances measures. This data may not be comparable to data presented by other gold producers. Non-GAAP financial performance measures should be considered together with other data prepared in accordance with IFRS.
The adjusted net profit is a measure of performance that members of the direction use to evaluate the performance of activities by the Company. Without taking into account the accounting policies, taxation laws and the structure of capital as these elements may potentially give a wrong representation of the capacity of the Company to generate cash with its operation. The adjusted net profit excludes interest expenses, taxes and amortization.
The cash costs and all-in sustaining costs are common performance measures in the gold mining industry. The Company reports cash cost per ounce based on ounces produced. Cash cost include operating mining costs and royalties but is exclusive of amortization and depletion and sustaining capital expenditures. The all-in sustaining costs include costs of sales and sustaining capital expenditures and administrative costs but exclude amortization and depletion and accretion expenses. The Company believes that the all-in sustaining costs present a complete picture of the Company’s operating performance or its ability to generate free cash flows from its operation.