Elgin Mining (TSX-V:ELG, StockForum), a Vancouver-based gold producer engaged in exploration and development with operations in Sweden, Canada and Mexico, announced its gold production and operating outlook for 2014.
According to the news release, the company anticipates to experience a considerable year-over-year improvement in the operating and cost performance of its Bjorkdal mine with gold production hitting the same levels as the previous year.
It went on to note that at present gold pricing sitting above $1,300 per ounce, Elgin expects all-in sustaining costs (“AISC”) to hover below $1,100 per ounce, bolstering its cash and working capital and knocking down its modest long term debt in the coming year.
Elgin Mining president and CEO, Patrick Downey, commented, “We had a very strong Q4-2014 at the Björkdal mine where the transition to owner-operated mining underground went much better than anticipated. Our costs per tonne mined decreased significantly and we also increased our mine head grade by better ore sequencing.”
He then added, “Furthermore, we successfully completed the drill and blast changes in the open pit which led to better costs and more consistent grades from the pit. I am also pleased to state that we continue to see these improvements in the early part of 2014. For 2014, we remain steadfastly focused on executing the operational improvements that commenced in the last quarter of 2013. We expect the initiatives undertaken at the Björkdal mine in 2013 to gain further traction in 2014, allowing the Björkdal mine to continuously move down the industry cost curve.”
Downey went on to clarify, “However, we are being reasonably conservative in our guidance for 2014 in terms of mill head grade and, should the mill feed grade continue at current levels, we should see better costs and production than current guidance.”
Then summed up, “Furthermore, with the higher productivity we are seeing in the underground operations, we are planning to expand the Björkdal operations in both the underground and the plant. With this modest expansion, we expect production to ramp up to between 55,000 to 60,000 gold ounces per annum.”
Elgin was in the news recently when the company released drill results at Bjorkdal gold mine in the middle of January.
Shares fell 5.36% on the news to $0.265 per share.
Currently there are 172.8m outstanding shares with a market cap of $45.8 million.