viewAnaconda Mining Inc

Anaconda Mining posts $1.5 mln profit in Q1


Anaconda Mining (TSE:ANX) Friday turned in a profit of $1.52 million, or $0.01 per share, for its fiscal first quarter ended August 31. Revenue in the period was $6.9 million.

A year ago, the company postd a loss of $811,685 or a loss of one cent per share, on revenue of $4.5 million.

Anaconda is a growth-oriented, gold mining and exploration company with a producing asset located on the Baie Verte Peninsula in Newfoundland, Canada called the Pine Cove mine.

The company said first-quarter performance was buoyed by record sales volume at the Pine Cove project.

"The company had a strong first quarter, exceeding budget expectations in several categories including gold sales volume, revenue and EBITDA," Anaconda's president and CEO Dustin Angelo said.

"Our goal is to hit our full year financial and operating targets and the first quarter has given us a very good start. We performed our scheduled maintenance during the latter half of August and have been ramping up to normalized levels during the current quarter.

"The company also continues to advance its organic growth story around Pine Cove with the property option agreement with Fair Haven Resources and the initiation of its peninsula-wide exploration program and bulk sample at the Romeo and Juliet prospect. 

"Subsequent to quarter end, we began trenching the more prospective targets, received the bulk sample permit for Romeo and Juliet and applied for a drill permit for the down dip area just north of our pit."

During the period, Anaconda Mining sold 4,217 ounces of gold at an average price of $1,627 per ounce. Cash cost on a consolidated basis and at Pine Cove were $1,056 per ounce and $948 per ounce, respectively.

Anaconda said that during the first quarter, gold sales volumes were up 48 per cent at 4,217 ounces.

Average sales price for the first quarter of fiscal 2013 was $1,627 per ounce versus $1,581 per ounce a year earlier.

The improvement in overall gold output compared to the first quarter of fiscal 2012 was due to substantial improvement in head grade and overall mill recovery.

As at August 31 the company had cash and cash equivalents of $1.62 million and a net working capital surplus of $519,634.

Mining activities operated for a total of 74 days and excavated a total of 605,180 tonnes of ore and waste. Ore production totaled approximately 90,000 tonnes exceeding budget by 15 per cent.

Quick facts: Anaconda Mining Inc

Price: 0.58 CAD

Market: TSX
Market Cap: $84.9 m

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