BTO, ODV, ARK
Gold producer B2Gold aka BTO released its Q1 results, and they were good. Production was strong across all their mines, with the above expectations production of 251k oz Au being driven primarily by higher than expected grades at their flagship operation, Fekola in Mali. Cash costs of $653/oz Au came in 20% below expectations, primarily due to Fekola and Otjikoto in Namibia. As a result, they grew their cash stash to $674M.
Management says they are now in a strong position to meet or exceed their annual guidance in terms of both production and costs., even as they concentrate on integrating recently-acquired Back River in Nuavut and bringing the Fekola regional deposits into production.
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In response, BMO issued a new analyst report which says they were impressed but are maintaining BTO at Outperform with a target of $7.50. TD's new analyst report saw the quarterlies as Positive and kept them at their highest rating Action List Buy with a target of $9.50.
We also got news concerning recent drilling at BTO's JV with Aurion in the Central Lapland Greenstone Belt in northern Finland. The results released so far are from Sinermä, located 23 km WNW of the original Helmi discovery and included some decent intercepts of Au minerlaization, but more importantly, the same structures that host Helmi are also extensive at Sinermä. More drill results are pending.
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Arras Minerals aka ARK released an update on the results of last year's extensive exploration sampling programme on their holdings in Kazakhstan. Analysis of of over 16000 soil samples revealed three promising Cu-Au porphyry targets along with a Au target and something new, a Ni target. Meanwhile, they continue to drill away on the more advanced Beskauga Cu/Au deposit along with nearby targets.
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Osisko Development aka ODV released its Q1 results. At this point ODV is primarily a developer but did sell 1503 oz Au in the quarter, primarily from processing tailings at its San Antonio property in Mexico. (No costs were included in the NR.) They had just over $122M at the end of the quarter, and they will need it to continue extending the decline at the Tintic Au mine in Utah, as well as underground drilling to define future production and upcoming exploration drilling at a number of targets. Meanwhile, they wait for permits at their Cariboo Au project in BC, where their new approach features a staged, less capital intense approach to development. They expect to receive the final permits necessary to begin construction by Q1 2024.
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