RNC Minerals (TSE:RNX) has seen strong production figures from its Western Australia gold operations, according to new numbers released by the mining company on Thursday.
Gold production during the fourth quarter totalled 26,874 ounces at an all-in sustaining cost (AISC) of US$1,131 per ounce.
The numbers helped RNC to exceed its internal guidance for the second half of 2019, the company said in a release.
The Toronto-based miner produced 51,090 gold ounces, topping its estimates for between 42,000 to 49,000 ounces. AISC was expected to be in the range of US$1,150 to $1,250 per ounce but came in just under the range at US$1,144 for the sixth-month period ended December 31, 2019.
RNC's CEO Paul Huet lauded the firm’s strong results, calling 2019 a “year of transformation” for the company.
“Our fourth quarter results continue to build upon the success of the previous quarter despite the challenges associated with the bushfires in Australia in late 2019,” Huet told shareholders in a statement.
“I would like to take this opportunity to personally commend our personnel in Australia for an outstanding job, which ensured that despite these challenges our mill remained in operation with ample feed from our mines and stockpiles. These efforts were reflected in our results.”
The company is now mining from three sources – Baloo, Fairplay North and Beta Hunt – with opportunities for expansion at all three operations. It said it was on track to meet its previously reported 2020 guidance of 90,000 to 95,000 ounces and AISC guidance of US$1,050-$1,200 per ounce.
READ: RNC Minerals discovers visible gold, high-grade results from drilling at Higginsville operation
Huet also shone a light on the company’s early 2020 exploration success, buttressed by the renegotiation of a royalty agreement with Morgan Stanley that unlocked an 1,800 square kilometre land package surrounding the Higginsville mill.
“We are seeing outstanding results from the drilling bit and our review of the large historical HGO database,” Huet said. “I am extremely excited to see what this year has in store with our large exploration program at Higginsville; the first of its kind in many years.”
The company ended the year with C$35 million in cash on its balance sheet.
RNC owns and operates the integrated Beta Hunt Gold Mine and Higginsville Gold Operations in Western Australia as well as a 28% interest in a nickel project in Quebec.
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