Vancouver-based Elgin Mining (
TSX:V.ELG,
Stock Forum) has announced a record year – and fourth quarter – for gold production, with higher head grades racking up big numbers, despite four days sown for annual equipment maintenance.
Gold production was 13,817 ounces for Q4 and 46,945 ounces for the 2013 year. Elgin has been engaged in underground production since 2007.
The production levels were at the top end of company guidance for the quarter.
Patrick Downey, President and CEO, stated, "The fourth quarter was the first in which the underground transitioned to owner-operated mining which has allowed for better mine planning and operating procedures and the results have exceeded our expectations. In the open pit, grades have improved in the quarter along with a quarter-over-quarter reduction in per ore tonne operating costs.”
Downey attributes those results to “the team at the mine in Sweden, who have made a rapid and smooth transition to owner-operated mining in the underground, and have focused their efforts on the key areas that will ensure that the mine remains cash flow positive at current spot prices for gold.”
Downey suggests 2014 could be a “challenging year” for gold industry players but asserts Elgin Mining is well positioned for this period.
“The Company has a strong cash balance and working capital position with low debt,” he says.
“We also initiated changes early in 2013 which have resulted in low corporate overhead and sustaining capital requirements, and we continue to focus on improved operating practices."
Elgin stock was unchanged at $0.16 Wednesday with the production results released after the end of trading. The company has a market cap of $27.6m and 172 million shares outstanding.