Category: Natural Resources

CDE reports first quarter 2020 earnings. On an adjusted basis, the company reported a first quarter loss of $(0.8) million, or $(0.00) per share compared to $(23.0) million, or $(0.11) per share, during the prior year period. We had forecast earnings of $1.4 million, or $0.01 per share. First quarter adjusted EBITDA amounted to $46.6 million. The earnings variance to our estimate was largely due to lower than projected revenue. On an unadjusted basis, the company reported a loss of $(11.9) million, or $(0.05) per share.

Updating estimates. We now forecast a 2020 loss per share of $(0.03) and EBITDA of $161.3 million compared to our previous estimates of $0.02 and $189.7 million, respectively. The reduction reflects lower production at the Palmarejo mine due to the extension of Mexico’s work restrictions to curb the spread of COV-19 infections. Our 2021 EPS and EBITDA estimates are $0.12 and…

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Executive Appointments. Mr. Rob Henderson has been appointed President and CEO effective April 21. Previously, Mr. Henderson served as President and CEO of Amerigo Resources Ltd., a copper producer with assets in Chile. Additionally, Ms. Meghan Brown joined the company as Vice President, Investor Relations. Ms. Brown served as Vice President, Investor Relations at Leagold Mining Corporation until its March 2020 merger with Equinox Gold.

Three new board members. Effective immediately, the Board appointed Mr. David Garofalo as Chair. Mr. Garofalo was President and CEO of Goldcorp Inc. until its sale to Newmont Corporation in April 2019. Additionally, Mr. Joseph Gallucci and Mr. Alan Hair joined the board of directors. Mr. Jeffrey Mason, previous Chair and interim CEO, will provide consulting services to facilitate the transition of executive responsibilities. Mr. Robert Archer will not stand for re-election to the Board at the 2020 Annual General Meeting but will continue to…

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Executive Appointments. Mr. Rob Henderson has been appointed President and CEO effective April 21. Previously, Mr. Henderson served as President and CEO of Amerigo Resources Ltd., a copper producer with assets in Chile. Additionally, Ms. Meghan Brown joined the company as Vice President, Investor Relations. Ms. Brown served as Vice President, Investor Relations at Leagold Mining Corporation until its March 2020 merger with Equinox Gold.

Three new board members. Effective immediately, the Board appointed Mr. David Garofalo as Chair. Mr. Garofalo was President and CEO of Goldcorp Inc. until its sale to Newmont Corporation in April 2019. Additionally, Mr. Joseph Gallucci and Mr. Alan Hair joined the board of directors. Mr. Jeffrey Mason, previous Chair and interim CEO, will provide consulting services to facilitate the transition of executive responsibilities. Mr. Robert Archer will not stand for re-election to the Board at the 2020 Annual General Meeting but will continue to…

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SMTS reports first quarter production results. Compared with the prior year period, first quarter production of copper, zinc and lead increased 52.3%, 31.8% and 30.5% to 11.8 million pounds, 21.6 million pounds and 9.1 million pounds, respectively. Gold production increased 84.1% to 3,657 ounces, while silver production increased 37.2% to 948 thousand ounces. The increases were driven by greater throughput as a result of capacity expansions and higher grades of ore.

Updating estimates. We are lowering our 2020 EPS and EBITDA estimates to $0.12 and $81.5 million from $0.21 and $109.5 million, respectively. Additionally, we have lowered our 2021 EPS and EBITDA to $0.24 and $122.6 million from $0.28 and $137.7 million, respectively. By comparison, 2019 Adj. EBITDA amounted to $65.3 million. Our revised 2020 estimates reflect lower production due to second quarter 2020 government-mandated work restrictions, lower base metals prices, and modestly lower production from Cusi for the balance of 2020. Our 2021 revisions are largely related to…

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SMTS reports first quarter production results. Compared with the prior year period, first quarter production of copper, zinc and lead increased 52.3%, 31.8% and 30.5% to 11.8 million pounds, 21.6 million pounds and 9.1 million pounds, respectively. Gold production increased 84.1% to 3,657 ounces, while silver production increased 37.2% to 948 thousand ounces. The increases were driven by greater throughput as a result of capacity expansions and higher grades of ore.

Updating estimates. We are lowering our 2020 EPS and EBITDA estimates to $0.12 and $81.5 million from $0.21 and $109.5 million, respectively. Additionally, we have lowered our 2021 EPS and EBITDA to $0.24 and $122.6 million from $0.28 and $137.7 million, respectively. By comparison, 2019 Adj. EBITDA amounted to $65.3 million. Our revised 2020 estimates reflect lower production due to second quarter 2020 government-mandated work restrictions, lower base metals prices, and modestly lower production from Cusi for the balance of 2020. Our 2021 revisions are largely related to…

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First quarter production results are a mixed bag. Compared to the prior year period, first quarter silver and gold production declined 19.9% and 15.7% to 857,659 ounces and 8,476 ounces, respectively. The decline was due to the suspension of mining at the El Cubo mine on November 30, 2019 and lower production at both Bolanitos and El Compas. Guanacevi production results outperformed our expectations, while Bolanitos and El Compas underperformed. Silver production exceeded our estimates, while gold production was below our estimate. Compared to the fourth quarter of 2019, first quarter silver and gold production declined 8.7% and 11.5%, respectively.

Updating estimates. We forecast a 2020 loss of ($0.06) per share and EBITDA of $22.5 million compared to our prior estimates of $0.01 and $34.1 million. Our revised estimates reflect, in part, lower production in the second quarter due to the suspension of mine activities in Mexico from April 1 through April 30 due to government-mandated work restrictions to curb COV-19 infections. We forecast 2021 EPS and EBITDA of $0.07 and $44.9 million, respectively. Our 2021 estimates reflect continued improvement in mine throughput and grades and the benefit of higher average gold and…

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First quarter production results are a mixed bag. Compared to the prior year period, first quarter silver and gold production declined 19.9% and 15.7% to 857,659 ounces and 8,476 ounces, respectively. The decline was due to the suspension of mining at the El Cubo mine on November 30, 2019 and lower production at both Bolanitos and El Compas. Guanacevi production results outperformed our expectations, while Bolanitos and El Compas underperformed. Silver production exceeded our estimates, while gold production was below our estimate. Compared to the fourth quarter of 2019, first quarter silver and gold production declined 8.7% and 11.5%, respectively.

Updating estimates. We forecast a 2020 loss of ($0.06) per share and EBITDA of $22.5 million compared to our prior estimates of $0.01 and $34.1 million. Our revised estimates reflect, in part, lower production in the second quarter due to the suspension of mine activities in Mexico from April 1 through April 30 due to government-mandated work restrictions to curb COV-19 infections. We forecast 2021 EPS and EBITDA of $0.07 and $44.9 million, respectively. Our 2021 estimates reflect continued improvement in mine throughput and grades and the benefit of higher average gold and…

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GPL reports first quarter production results. Great Panther produced 34,725 gold equivalent ounces, including 28,940 ounces of gold and 374,917 ounces of silver. Compared with the prior year period, gold and silver production increased 249.0% and 10.8%, respectively. The increase in gold production was attributed to a full first quarter of Tucano mine production. Sequentially, gold and silver production declined 22.0% and 11.4%, respectively.

Mining suspended in Mexico until April 30. In April, GPL suspended activities at its mining and processing operations in Mexico in accordance with the Mexican government’s suspension of non-essential activities to contain the COVID-19 virus. The Tucano mine in Brazil remains operational given that Brazil has not introduced any…

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No go on Corpus Christi. Last week, Callan Marine won the $97.9 million award for dredging and other related work in Corpus Christi. The addition of the General Mac Arthur, a new 32-inch cutter suction dredge, last year allowed Callan to win. GLDD was one of the other two bidders, but limited info is available since it was a RFP process.

No change in dredging market outlook, but competition has increased. We believe that the widespread disruption caused by the Coronavirus will have a minimal impact on operations since dredging is defined as an essential service, per the Department of Homeland Security (DHS). Our dredging market outlook remains favorable, but competition has escalated, with Callan Marine and…

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Focus shifts to planning and analysis. On March 18, Aurania suspended field operations in Ecuador and withdrew its personnel from the Cordillera de Cutucu following measures by the Ecuadorian government to reduce the spread of new COV-19 infections. Management has shifted its focus to working through its field data backlog, planning ground surveys at Crunchy Hill and Yawi, refining the drilling plan for epithermal gold and silver targets and refining sedimentary-hosted copper-silver targets in both Ecuador and Peru. In our view, the company will be in a better position to hit the ground running once work restrictions are lifted.

Updating estimates. As an exploration company, Aurania Resources generates no revenue. We are narrowing our 2020 loss estimate per share to (C$0.38) from (C$0.41) to account for lower expenses in the second quarter due to the temporary suspension of fieldwork in Ecuador. While we have not lowered our 2020 estimate for exploration, we have lowered expense estimates associated with travel, investor relations and project evaluation. Second quarter exploration expenses have been shifted to…

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GPL reports first quarter production results. Great Panther produced 34,725 gold equivalent ounces, including 28,940 ounces of gold and 374,917 ounces of silver. Compared with the prior year period, gold and silver production increased 249.0% and 10.8%, respectively. The increase in gold production was attributed to a full first quarter of Tucano mine production. Sequentially, gold and silver production declined 22.0% and 11.4%, respectively.

Mining suspended in Mexico until April 30. In April, GPL suspended activities at its mining and processing operations in Mexico in accordance with the Mexican government’s suspension of non-essential activities to contain the COVID-19 virus. The Tucano mine in Brazil remains operational given that Brazil has not introduced any…

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No go on Corpus Christi. Last week, Callan Marine won the $97.9 million award for dredging and other related work in Corpus Christi. The addition of the General Mac Arthur, a new 32-inch cutter suction dredge, last year allowed Callan to win. GLDD was one of the other two bidders, but limited info is available since it was a RFP process.

No change in dredging market outlook, but competition has increased. We believe that the widespread disruption caused by the Coronavirus will have a minimal impact on operations since dredging is defined as an essential service, per the Department of Homeland Security (DHS). Our dredging market outlook remains favorable, but competition has escalated, with Callan Marine and…

Click here to get the full report.

Focus shifts to planning and analysis. On March 18, Aurania suspended field operations in Ecuador and withdrew its personnel from the Cordillera de Cutucu following measures by the Ecuadorian government to reduce the spread of new COV-19 infections. Management has shifted its focus to working through its field data backlog, planning ground surveys at Crunchy Hill and Yawi, refining the drilling plan for epithermal gold and silver targets and refining sedimentary-hosted copper-silver targets in both Ecuador and Peru. In our view, the company will be in a better position to hit the ground running once work restrictions are lifted.

Updating estimates. As an exploration company, Aurania Resources generates no revenue. We are narrowing our 2020 loss estimate per share to (C$0.38) from (C$0.41) to account for lower expenses in the second quarter due to the temporary suspension of fieldwork in Ecuador. While we have not lowered our 2020 estimate for exploration, we have lowered expense estimates associated with travel, investor relations and project evaluation. Second quarter exploration expenses have been shifted to…

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