Timmins Lists Higher 2Q Earnings, OKs Ana Paula Pre-Construction Program

Friday August 12, 2016 07:59

Timmins Gold Corp. (TSX: TMM; NYSE MKT: TGD) reports sharply higher second-quarter earnings, plans to extend operations at the San Francisco mine and a pre-construction program for the Ana Paula project. The company lists “earnings and total comprehensive income” for the second quarter of $6.4 million, or 2 cents per share, up from $629,000, or basically zero per share, in the year-ago period. Timmons produced and sold 25,863 and 26,474 ounces of gold, respectively, up from 22,869 for each category a year ago, as the average grade increased. "Our cash costs for the quarter of $681 per ounce and all-in sustaining cash costs of $761 per ounce were particularly strong and were respectively 30% and 33% lower than the comparable period,” says interim chief executive Mark Backens. He later adds, “We are raising production guidance for 2016 from 75,000-85,000 ounces to 90,000-100,000 ounces, and lowering our cash cost guidance to $750 to $800 per ounce. Due to the higher sustained gold price, we will be continuing operations at San Francisco past 2016. We are in the final stages of the engineering work to determine the optimum mine plan for continued operations. We expect to release full details before the end of this month." The company also reports that the board of directors approved a pre-construction program, including the start of a feasibility study, for the Ana Paula gold project in Mexico, after a preliminary economic assessment updated earlier this year indicating a “robust, high-margin” open-pit mining project at $1,200 gold.  The company expects the feasibility study to be complete by the third quarter of 2017 and have all permits required for construction by the first quarter of 2018.