Roxgold says 2018 output may be at upper-end of guidance

Burkina Faso-focused Roxgold has delivered strong second-quarter production and cash flow results, standing the company in good stead to achieve the upper end of its 2018 production guidance.

For the three months to June 30, TSX-listed Roxgold achieved gold production of 35 828 oz of gold, compared with 27 970 ounces during the same period last year.  

The company realised a record quarterly processing throughput of 75 417 t, 12% above nameplate capacity. Gold sales increased by 27% year-on-year to $45.8-million, with 35 320 oz of gold sold.

"Operations at Yaramoko continued to deliver strong production and cash flow results in the second quarter.  As a result, we have maintained our strong balance sheet and are well positioned to achieve the upper end of our 2018 production guidance and be within our cost guidance range," said CEO John Dorward.

During the quarter ended June 30, the cash operating cost for each tonne processed totalled $201, which is well below the $214/t achieved during the comparable period in 2017.

Roxgold invested $6.697-million in underground mine development, representing a sustaining capital cost for each ounce sold of $190, while the company invested $8.073-million at a sustaining capital cost of $280/oz in the comparable period in 2017.