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The precious metals miners earnings report thread....
cohodk
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Post the earnings reports as you see them, with an emphasis on "all-in" costs and total production amounts (increases or decreases).....
IAMGOLD reports Q4 (Dec) results, misses on revs (2.34 +0.15)
Reports Q4 (Dec) earnings of $0.03 per share, incl items, may not be comparable to the Capital IQ Consensus Estimate of ($0.00); revenues rose 39.7% year/year to $272.5 mln vs the $313.09 mln consensus.
Co beat its cost guidance, with all-in sustaining costs falling consistently throughout the year to $1,021 an ounce in the final quarter - $209 per ounce less than the same quarter last year.
Attributable gold production of 241,000 ozs. increased for third consecutive quarter; up 7% from Q3/14 due to improving grades at Essakane and Rosebel. Attributable gold sales of 234,000 ozs. All-in sustaining costs -- gold mines of $1,021/oz. declined for fourth consecutive quarter; down $94/oz. from Q3/14 and $209/oz. from Q4/13.
In 2015, the co sees all-in sustaining cost at $1,075-1,175.
Read more: http://www.briefing.com/Platinum/InDepth/InPlay.htm#ixzz3S9pyQctz
IAMGOLD reports Q4 (Dec) results, misses on revs (2.34 +0.15)
Reports Q4 (Dec) earnings of $0.03 per share, incl items, may not be comparable to the Capital IQ Consensus Estimate of ($0.00); revenues rose 39.7% year/year to $272.5 mln vs the $313.09 mln consensus.
Co beat its cost guidance, with all-in sustaining costs falling consistently throughout the year to $1,021 an ounce in the final quarter - $209 per ounce less than the same quarter last year.
Attributable gold production of 241,000 ozs. increased for third consecutive quarter; up 7% from Q3/14 due to improving grades at Essakane and Rosebel. Attributable gold sales of 234,000 ozs. All-in sustaining costs -- gold mines of $1,021/oz. declined for fourth consecutive quarter; down $94/oz. from Q3/14 and $209/oz. from Q4/13.
In 2015, the co sees all-in sustaining cost at $1,075-1,175.
Read more: http://www.briefing.com/Platinum/InDepth/InPlay.htm#ixzz3S9pyQctz
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The company produced 6.25 million ounces of gold at all-in sustaining costs of $864 per ounce in 2014, generating $2.30 billion in operating cash flow.
Production guidance for 2015 is 6.2-6.6 million ounces of gold at all-in sustaining costs of $860-$895 per ounce.
The company expects to generate positive free cash flow this year at current gold prices.
Annual gold production from our current portfolio is expected to exceed six million ounces in 2016 and 2017, with all-in sustaining costs lower than this year by 2017.
Read more: http://www.briefing.com/GeneralContent/Platinum/Active/TickerSearch/QuickSearch.aspx#ixzz3SCgvmUB7
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Production and Operations
During the fourth quarter of 2014, Pan American's mines performed within management's expectations and produced 6.75 million ounces of silver and 43,900 ounces of gold.
The Company also produced 10,200 tonnes of zinc, 3,900 tonnes of lead and a record 3,000 tonnes of copper on account of quarterly record zinc and lead production at La Colorada and quarterly record copper production at both Huaron and Morococha.
Consolidated silver production for the full year 2014 was a record 26.11 million ounces, slightly higher than 2013 silver production and well within management's expectations. The new record was achieved due to production gains at La Colorada, Manantial Espejo, Dolores and Huaron and despite the expected decline of silver production at Alamo Dorado.
As anticipated, Pan American also achieved record consolidated gold production of 161,500 ounces in 2014, 8% greater than 2013 gold production, as a result of more ounces produced at Dolores and Manantial Espejo.
2015 Outlook
As announced on January 19, 2015, Pan American expects to maintain current production levels of between 25.50 and 26.50 million ounces of silver at cash costs of between $10.80 and $11.80 per ounce of silver, net of by-product credits.
In addition, higher gold grades at Dolores are expected to contribute to an increase in consolidated gold production to between 165,000 and 175,000 ounces, (between 2% and 8% higher than in 2014).
The Company's consolidated 2015 base metals production is expected to total 41,000 to 43,000 tonnes of zinc, 14,500 to 15,000 tonnes of lead and 8,000 to 8,500 tonnes of copper.
Pan American also expects to spend between $71 to $84 million on sustaining capital in 2015, while investing $98 to $109 million in long term projects, primarily for the expansion project at La Colorada.
Read more: http://www.briefing.com/GeneralContent/Platinum/Active/TickerSearch/QuickSearch.aspx#ixzz3SChRkbpO
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In doing some research the past couple of weeks, it seems the "all-in" costs are still not truly all-in. They are still leaving stuff out. That's why these impairments keep showing up. I posted a chart of truly all in costs somewhere last week. During the 2011-2013 period the true "all-in" costs for the largest gold miners was on the order of $1500-$1900/oz. During that period those miners were reporting "cash costs" in the $600-$900 range. No one was yet doing "semi all-in" costs. And when the gold price fell under $1500 in April 2013 that changed everything for miners. Barrick had the largest impairments reported with $2.8 BILL (-$1.7 BILL on mines, and -$1.1 BILL on "good will."). Of the bigger boyz reporting this week I only saw Hecla and Newmont showing a net profit for the quarter. Even with a multi-$BILL loss this quarter Barrick's share price has been soaring the past 3 days on news that they are going to reduce debt by $3 BILL (selling a pair of mines and reducing admin expenses by approx half). Goldcorp got smacked hard yesterday on their $2.4 $BILL in write offs and the earnings miss....they should have "stated" they were going to reduce debt too like Barrick.
Attributable production was 1.26 million ounces of gold in the fourth quarter, compared to 1.45 million ounces in the prior year quarter, due mainly to the impact of divestments; and 4.85 million ounces for the year, compared to 5.07 million ounces in 2013. Lowered gold AISC to $927 per ounce in the fourth quarter, representing a second consecutive quarter of maintaining AISC below $1,000 per ounce; and $1,002 for the full year, a 10% improvement over 2013.
Outlook: Improved 2015 outlook through strong operating performance and expect attributable gold production of between 4.6 to 4.9 million ounces in 2015, at CAS of between $660 and $710 per ounce and AISC of between $960 and $1,020 per ounce in 2015.
Read more: http://www.briefing.com/GeneralContent/Platinum/Active/TickerSearch/QuickSearch.aspx#ixzz3SJidxyh0
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Co preannoucned results on Jan 12.
Gold sales totaled 707,900 ounces on record gold production of 890,900 ounces.
All-in sustaining costs1,4 were $1,035 per ounce.
Adjusted operating cash flow totaled $337 mln, or $0.41 per share
On January 12, Goldcorp announced production and cash cost guidance for 2015. The Company has forecast an ~20% increase in gold production to between 3.3 and 3.6 million ounces. All-in sustaining costs are expected to be between $875 and $950 per ounce of gold. Both gold production and cash cost guidance include the assumption of the completion of the Wharf divestiture before March 31, 2015. Capital expenditures for 2015 are forecast at between $1.2 and $1.4 billion, including ~$235 million at Cerro Negro, $215 million at Peñasquito, $115 million at Éléonore and $95 million at Cochenour.
Goldcorp also announced today proven and probable gold mineral reserves of 49.6 million ounces. Proven and probable silver mineral reserves totaled 789 million ounces, representing one of the largest silver reserves in the industry.
Read more: http://www.briefing.com/GeneralContent/Platinum/Active/TickerSearch/QuickSearch.aspx#ixzz3SJjNBv38
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Co posted its second consecutive growth in annual production alongside a 13% improvement in all-in sustaining costs, as it continued to focus on portfolio improvements and capital discipline.
Production rose 8% to 4.44Moz at an all-in sustaining cost of $1,026/oz in the 12 months through December 31, 2014, from 4.10Moz at $1,174/oz the previous year. The result compared with guidance of 4.2Moz to 4.5Moz at an all-in-sustaining cost of $1,025/oz to $1,075/oz. All-in sustaining cost is a measure that captures direct operating costs, corporate and exploration expenditure and capital investment required to sustain the business.
Read more: http://www.briefing.com/GeneralContent/Platinum/Active/TickerSearch/QuickSearch.aspx#ixzz3SgPDsrRJ
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Record fourth quarter production of 405,615 GEO, compared to 303,768 GEO produced in the fourth quarter of 2013.
Total copper production for the three months ended December 31, 2014 was 44.0 million pounds, compared to 45.6 million pounds for the same period of 2013.
Guidance:
For 2015, the Company expects to deliver production growth across its portfolio with gold production increasing by approximately 9% to 1.30 million ounces of gold with 9.6 million ounces of silver and 120 million pounds of copper.
2016 production is expected to increase by a further 5% to approximately 1.37 million ounces of gold with 8.9 million ounces of silver and 120 million pounds of copper.
2017 production is expected to increase further to approximately 1.44 million ounces of gold and 11.2 million ounces of silver based on Cerro Moro beginning to contribute to production. Copper production is expected to increase to 130 million pounds.
Read more: http://www.briefing.com/GeneralContent/Platinum/Active/TickerSearch/QuickSearch.aspx#ixzz3SgQVs5ys
Yamana Gold announces that it will proceed with the construction of Cerro Moro project (3.93 -0.11) :
The current plan indicates average annual production in the first three years of full production of 135,000 ounces of gold and 6.7 million ounces of silver.
Life of mine estimates include annual production of 102,000 ounces of gold and 5 million ounces of silver,
Throughput of 1,000 tonnes per day ("tpd"),
Cash costs of $380 to $400 per ounce of gold and $5.35 to $5.50 for silver, and all in sustaining costs of $547 to $557 per ounce of gold and $7.60 to $7.80 per ounce of silver
Total project capital for the life of mine is expected to be $398 million that includes $265 million in initial capital and $133 million LOM sustaining capital.
Read more: http://www.briefing.com/GeneralContent/Platinum/Active/TickerSearch/QuickSearch.aspx#ixzz3SgQayykW
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All-in sustaining cost: $1,006 per Au eq. oz. sold, compared with $1,175 in Q4 2013. All-in sustaining cost per gold ounce (Au oz.) sold on a by-product basis was $1,001 in Q4 2014, compared with $1,169 in Q4 2013.
Looking ahead to 2015:
In 2015, Kinross expects to produce ~ 2.4-2.6 million Au eq. oz. from its current operations, lower than 2014 production of 2.71 million Au eq. oz.
This is mainly a result of anticipated lower grades at Chirano, Kettle River-Buckhorn and Dvoinoye due to mine sequencing, and reduced production from the Tasiast dump leach.
The co has forecast an all-in sustaining cost for 2015 of $1,000 - $1,100 per Au eq. oz. sold, and per ounce sold on a by-product basis, which is slightly higher than 2014 full-year results mainly due to an increase in forecast sustaining capital expenditure and reduced gold production for 2015.
Read more: http://www.briefing.com/GeneralContent/Platinum/Active/TickerSearch/QuickSearch.aspx#ixzz3SgQuDnLb
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2014 gold production was 789,224 ounces, in-line with original 2014 guidance of 730-800k ounces
Co sees FY15 gold production of 640-700k ounces, with a cash operating cost of 570-615 $/oz
Read more: http://www.briefing.com/GeneralContent/Platinum/Active/TickerSearch/QuickSearch.aspx#ixzz3SgRTWh5R
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Co beat its cost guidance, with all-in sustaining costs falling consistently throughout the year to $1,021 an ounce in the final quarter - $209 per ounce less than the same quarter last year.
Attributable gold production of 241,000 ozs. increased for third consecutive quarter; up 7% from Q3/14 due to improving grades at Essakane and Rosebel. Attributable gold sales of 234,000 ozs. All-in sustaining costs -- gold mines of $1,021/oz. declined for fourth consecutive quarter; down $94/oz. from Q3/14 and $209/oz. from Q4/13.
In 2015, the co sees all-in sustaining cost at $1,075-1,175.
"In 2015, we expect to produce between 820,000 and 860,000 ounces of gold. We expect a ramp-up in production at Westwood in its first full year of commercial production. There will be some variation from quarter to quarter, with the first and final quarters the lightest due to the sequencing of underground development activity. Building on the 33% increase in production that we had at Essakane in 2014, this operation is expected to have four strong quarters of production as the operation continues to benefit from higher grades and the previous mill expansion to accommodate a higher proportion of hard rock processing. At Rosebel, we continue to focus on improving grades and increasing productivity. The joint ventures are expected to produce 60,000 ounces."
Read more: http://www.briefing.com/GeneralContent/Platinum/Active/TickerSearch/QuickSearch.aspx#ixzz3SgRo8Php
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Fourth quarter 2014 cash provided by operating activities was $164.0 million ($152.2 million before changes in non-cash components of working capital), this compares to cash provided by operating activities of $140.8 million in the fourth quarter of 2013 ($135.8 million before changes in non-cash components of working capital).
Payable gold production in 2014 was 1,429,288 ounces at total cash costs per ounce on a by-product basis of $637, compared to guidance of 1,400,000 ounces at total cash costs per ounce on a by-product basis of $663.
2015 guidance maintained - Production for 2015 is expected to be approximately 1.6 million ounces of gold with total cash costs on a by-product basis of $610 to $630 per ounce. AISC are forecast to be approximately $880 to $900 per ounce.
Read more: http://www.briefing.com/GeneralContent/Platinum/Active/FullTextSearch/FullTextSearch.aspx#ixzz3SgSBLvdH
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Production and costs in the first quarter were in line with operating plans. The company produced 1.39 million ounces of gold at all-in sustaining costs of $927 per ounce and generated $316 million in operating cash flow.
The company remains committed to debt reduction of at least $3 billion by the end of 2015, with asset sales and other initiatives well advanced.
Barrick is announcing a significant new gold discovery, known as Alturas, on Chile's prolific El Indio belt. Drilling to date suggests Alturas is geologically similar to Veladero, with the potential to be significantly higher grade.
Guidance: Gold production guidance for 2015 is 6.2-6.6 million ounces at AISC of $860-$895 per ounce. Production will be approximately 55 percent weighted to the second half of the year and costs are expected to be 20 percent lower in that period. Additionally, all-in sustaining costs and cash costs are expected to be highest in the second quarter of the year.
Read more: http://www.briefing.com/GeneralContent/Platinum/Active/TickerSearch/QuickSearch.aspx#ixzz3Z0Pxi9cP
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Co sees 2015 gold production outlook at 5.20-5.61 mln ounces
Co sees all-in sustaining costs $960-1,020/oz
Newmont remains on track to meet its full year 2015 outlook for gold and copper production, CAS and AISC.
Total 2015 CAS and AISC are unchanged, but the Company's revised outlook reflects a three percent reduction in Asia Pacific region costs, offsetting an increase in Africa costs.
Boddington and Tanami CAS and AISC outlook for 2015 are lower than previous estimates due primarily to lower Australian dollar exchange rates and oil prices. In Africa, Akyem CAS outlook for 2015 is also improved due to ongoing cost and efficiency improvements.
The updated 2015 outlook includes increased capital spending for Long Canyon and additional power generation units at Ahafo and Akyem to mitigate ongoing load shedding in Ghana.
As a result, 2015 AISC outlook is unchanged at Akyem and up slightly at Ahafo. Newmont continues to expect 2016 and 2017 gold and copper production, CAS, AISC and sustaining capital outlook to remain unchanged from previous guidance, excluding the positive impact of Long Canyon Phase 1 announced earlier this month.
Read more: http://www.briefing.com/GeneralContent/Platinum/Active/TickerSearch/QuickSearch.aspx#ixzz3Z0QTTl18
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2015 Outlook
The Company today reconfirmed 2015 production guidance of between 3.3 and 3.6 million gold ounces at all-in sustaining costs of between $875 and $950 per gold ounce, driven primarily by new contributions from Cerro Negro and Éléonore. Gold production is expected to increase over the course of 2015 as mining continues into the higher-grade portions of the Peñasco pit at Peñasquito and as both Cerro Negro and Éléonore ramp-up through the year. Capital spending guidance remains unchanged at between $1.2 billion and $1.4 billion for 2015. Depreciation, depletion, and amortization expense is expected to be approximately $390 per gold ounce sold with DDA per ounce higher in the first quarter of 2015 at $444 per ounce but declining over the remainder of the year. Excluding the impacts of foreign exchange on deferred tax assets and liabilities, the Company now expects an annual effective tax rate of 45% in 2015 on adjusted net earnings, with an expected 39% effective tax rate for each of the second, third and fourth quarters.
Read more: http://www.briefing.com/GeneralContent/Platinum/Active/TickerSearch/QuickSearch.aspx#ixzz3Z0QzMk50
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