IAU, BTO, EDV, OGC
At this point in the evolution of Nevada miner i-80 Gold aka IAU, it's not really about the residual production from pre-existing mines and heap leaches, it's about future production from the new mines they are building. That said, it takes a lot of money to build those mines, so when IAU can sell 4329 oz Au at a realized price of almost $2000/oz, and also sell 6551t of mineralized material for $2.8M, that is a very good thing. Due to all the work going on, the company continues to lose money and will continue to do so for the next 18 months to two years as further investments are made, but after that they should be able to generate a great deal of cash flow and profits.
The Q2 report also contains some detail re the building and exploration efforts, but I have already covered those in detail so won't spend time on them here.
Message 34371385
Gold miner B2Gold aka BTO released Q2 results of 246k oz Au produced that came in above expectations, with cash costs of $777/oz Au also beating expectations. The beat was driven primarily by Otjikoto in Namibia, where costs were lower than expected due to lower fuel costs and changes in exchange rates, and Masbate in the Philippines, where production came in well above expectations and fuel costs were also lower. During Q2 they generated free cash flow of $25M but their cash stash decreased to $506m primarily due to the costs of building the Back River mine in Nunavut, which remains on schedule to start production Q1 2025.
BTO remains well placed to meet 2023 guidance in terms of both production and costs.
Message 34371317
FWIW, in response TD issued a new analyst report called the impact of Q2 results Slightly Positive while maintaining BTO as Action List Buy with a target of $9.
FWIW, in the wake of yesterday's Q2 results release by Endeavour Mining aka EDV, BMO issued a new analyst report Citing EDV's beat on both production and costs from continuing operations, they think Ms. Market was a little fooled by accounting only losses related to two recent divestments, creating an attractive buying opprtunity at current prices, They kept EDV at Outperform with a target of $38,
FWIW, in the wake of yesterday's Q2 results release by Oceanagold aka OGC, BMO issued a new analyst report. They saw it as generally positive, with good results from the New Zealand mines leading to an overall beat on both production and costs. However, they noted that although Haile underground remains on track for 1st production Q4, a ball mill at Macraes in New Zealand is now shut down for repairs. They maintained OGC at Outperform with a target of $4.25.
Meanwhile, Saville continues to maintain that gold will most likely set a correction low in the next two months before breaking out in October and heading to new highs. He opines that the 10-year TIPS yield dropping below 1.47% means the conditions are in place for that rally. |
