Detour Gold's (TSE:DGC) shares stumbled Wednesday after the company trimmed its full year production guidance range and reported a net loss in its second quarter, attributed to non-cash charges and higher cost of sales during the slower-than-planned ramp up of its flagship mine to full production levels.
The Toronto, Ontario-based gold miner, which is ramping up the Detour Lake gold mine in Quebec to a large scale operation, reported a net loss of $35 million, or 23 cents per share, compared to net earnings of $23.1 million, or 19 cents per share, in the corresponding period of 2013.
The latest period included $63.5 million of non-cash items, including depreciation and depletion of $38.3 million, a fair value loss on convertible notes, accretion charges, and non-cash share-based compensation expense, among other items. On an adjusted basis, the company lost 12 cents per share.
Revenue came to $139 million, compared to nil in the same quarter a year ago. The company said it sold 107,206 ounces of gold during the most recent period, at an average realized price of $1,293 an ounce.
"Operationally, we made good progress in the second quarter and attained the upper end of our production guidance for the first half of the year at 224,520 ounces of gold," said president and CEO Paul Martin.
"We realized higher grades than planned which compensated for the slightly slower ramp-up progress during the first half of the year."
For the remainder of the year, the chief executive said the company is projecting a similar rate of progress, and has therefore trimmed the high end of its 2014 output forecast by 20,000 ounces, to 480,000 ounces. The lower end of the guidance range remained steady at 450,000 ounces.
The company's throughput and mining rates were below target levels at the end of the second quarter. Detour also increased its forecast for total cash costs, from $800 to $900 per ounce to $900 to $975 per ounce sold.
"We remain focused on execution and continue to expect reaching mill design capacity of 55,000 tonnes per day by year-end," Martin said.
Shares of Detour Gold crumbled 6.3 percent to C$12.46 in Toronto on Wednesday. The stock has still more than tripled in value since the beginning of the year. Reported by Proactive Investors 9 hours ago.
The Toronto, Ontario-based gold miner, which is ramping up the Detour Lake gold mine in Quebec to a large scale operation, reported a net loss of $35 million, or 23 cents per share, compared to net earnings of $23.1 million, or 19 cents per share, in the corresponding period of 2013.
The latest period included $63.5 million of non-cash items, including depreciation and depletion of $38.3 million, a fair value loss on convertible notes, accretion charges, and non-cash share-based compensation expense, among other items. On an adjusted basis, the company lost 12 cents per share.
Revenue came to $139 million, compared to nil in the same quarter a year ago. The company said it sold 107,206 ounces of gold during the most recent period, at an average realized price of $1,293 an ounce.
"Operationally, we made good progress in the second quarter and attained the upper end of our production guidance for the first half of the year at 224,520 ounces of gold," said president and CEO Paul Martin.
"We realized higher grades than planned which compensated for the slightly slower ramp-up progress during the first half of the year."
For the remainder of the year, the chief executive said the company is projecting a similar rate of progress, and has therefore trimmed the high end of its 2014 output forecast by 20,000 ounces, to 480,000 ounces. The lower end of the guidance range remained steady at 450,000 ounces.
The company's throughput and mining rates were below target levels at the end of the second quarter. Detour also increased its forecast for total cash costs, from $800 to $900 per ounce to $900 to $975 per ounce sold.
"We remain focused on execution and continue to expect reaching mill design capacity of 55,000 tonnes per day by year-end," Martin said.
Shares of Detour Gold crumbled 6.3 percent to C$12.46 in Toronto on Wednesday. The stock has still more than tripled in value since the beginning of the year. Reported by Proactive Investors 9 hours ago.