Goldtent TA Paradise
Comment: A gold miner run by mining engineers and geologists, not lawyers and accountants. Management has skin in the game too. These guys have 13 drill rigs running now. 3 mines and a 4th in the pipeline. A growth story. Cash costs $440 at Fosterville … gross margins 200%. No wonder Sprott likes it.
Newmarket Gold Reports Strong Q2 Results; Increases 2016 Production Guidance on Record Quarterly Production of 61,191 Oz
VANCOUVER, BRITISH COLUMBIA–(Marketwired – July 29, 2016) – Newmarket Gold Inc. (“Newmarket Gold” or the “Company”) (TSX:NMI)(OTCQX:NMKTF) is pleased to announce financial results for the three and six months ended June 30, 2016. Full Financial Statements and Management Discussion & Analysis documents can be found at www.sedar.com and the Company’s website, www.newmarketgoldinc.com.
All figures are in United States (“U.S”) dollars, unless otherwise stated.
Second Quarter 2016 Highlights
2016 Corporate Guidance Revision: Increased full year 2016 consolidated production guidance to 225,000 – 235,000 ounces, following record quarterly production from Fosterville, while lowering consolidated All-In Sustaining Costs (“AISC”) to $900 – $975 per ounce sold.
Strong Cash Position: Increased cash balance of $69.9 million, an increase of 91% from $36.5 million at Q4 2015. Working capital of $56.3 million at Q2 2016, up significantly from $22.3 million at Q4 2015.
Generating Free Cash Flow: Operating cash flow for Q2 2016 of $31.0 million or $0.18 per share based on basic weighted average number of shares outstanding, based on revenue of $78.0 million from 62,223 ounces sold. Free cash flow of $17.4 million based on operating cash flow less capital expenditures of $13.6 million, after investing $3.6 million into growth programs in Q2 2016.
Record Quarterly Mine Operating Income: Q2 2016 Mine Operating Income of $28.1 million, up 60% from Q1 2016, the result of record quarterly consolidated gold production of 61,191 ounces.
Record Consolidated Quarter Operating Cash Cost & Low AISC: Q2 2016 Operating cash costs per ounce sold of $673 and AISC per ounce sold of $937.
Record Quarterly Performance at Flagship Fosterville Gold Mine: Gold production of 37,245 ounces with record average grade of 7.50 g/t Au and record quarterly recovery of 90.8% supported by the successful commissioning of the new gravity gold circuit.
Fosterville Achieves Record Low Quarter Operating Cost & Low AISC: Q2 2016 Operating cash cost per ounce sold of $440 and AISC per ounce sold of $741.
Increased Net income: $16.8 million or $0.10 Basic EPS in Q2 2016, including the impact of $2.3 million in share based compensation expense tied to the 76% increase in the share price of the Company on the TSX Exchange in Q2 2016.
Douglas Forster, President & CEO, Newmarket Gold commented: “Newmarket Gold is pleased to report another consecutive quarter of improved operational performance and financial results driven by record results from our flagship Fosterville gold mine, where an increasing grade profile and improved metallurgical recoveries have supported record production results. Our continued focus on safety, productivity and quality has enabled Newmarket Gold to build a cash balance of $69.9 million, marking an increase of 91% from the start of the year. For the first half of 2016, the Company has generated free cash flow of $26.2 million from operations after investing $7.5 million in growth exploration programs.”
“Based on record second quarter production, Newmarket Gold is increasing full year consolidated production guidance to 225,000 – 235,000 ounces of gold and lowering the consolidated AISC to $900 – $975 per ounce sold, mainly attributable to record production, grade and recovery at Fosterville. In addition, exploration success to date on near mine targets and continued strengthening of the gold price support increasing our exploration growth programs to $10-$15 million for the year. This increased growth investment will enable the Company to advance the resource potential of our assets and to accelerate the development of the growth side of our business. Currently, we have increased drilling at all sites and now have 13 drill rigs in operation, with programs designed to increase mineral resources and mineral reserves to extend the mine life of our operations.”
Anybody got a rumour ?
Up over 10% today on an earnings beat. Great mining resource stock in one of my IRA’s for anyone interested in a “Steady Eddie.” The dividend was about 5.5% when I picked it up at $2.90 at it’s IC Low back in late June.
Unlike many resource companies that are loaded with debt, NSU’s balance sheet is quite strong which allows them to pay a nice dividend while the stock price moves through various cycles.
Even with the pop today the Div is still 4.7%.
These road maps show what a generational bull market looks like in its very early stages.
Not that I would own the GDX and GDXJ being ETFs, and therefore Wall Street instruments designed to farm the crowd, and highly influenced by decaying derivatives, but the GDX and GDXJ charts are somewhat instructive for where the gold stocks are generally headed over the next 6 months. Do not expect a significant correction until early 2017 at the earliest, and near the targets shown.
TSXV is the better market to play this bull. Why: This is a “no fly zone” where human beings trade, not the Wall Street machines and robots, as its off limits to them. For example, compare the recent minor corrections in GDX and GXJ to $CDNX (what correction?).
Economic pundits say worrisome.
GOLDBUGS SAY RIDE ‘EM!
Yen up 2% but Gold and Silver about Flat
Incredible call on the US Dollar Cycle High !
Stay away from Goldcorp. Their most recent report was a total nightmare. Anything that has ever been touched by the “Goldcorp Gang” must be avoided. This includes TAHO, PPP, SLW. Just look at the underperformance of all of these names. If the market gives us another shot to buy, DO NOT BUY THESE NAMES. Buy The companies run by miners and class acts… RIC, NEM, AEM, MUX.
Going to be a good Friday for PMs
Looks like it is at 5 AM GMT which is 1 AM Eastern North American Time
The Press Conference is 2:30 AM Eastern NA Time
See Y’all in the wee hours
Just curious if anyone here pays much attention to this as a sell indicator?
Article dated 7/27/16
In other relevant news JGBond trading halted (on eve of major announcement)
I wouldn’t say you are “wrong” per se – I like the way you frame your charts – very sharp. However, I may be looking at GDX from a different perspective.
On the quick – without getting deeply into EWP – I’m not sure I agree with your wave count. I don’t think we will complete a wave I cycle on the weekly chart until GDX gets to the $38-45 area.
Aside from that – I’m not putting too much emphasis on the 2013 high of $30.59 as major resistance, which GDX has actually already taken out on a closing basis when price action is viewed via a monthly line chart, as shown below.
Please note OBV, a leading indicator in keeping with Granville’s mantra of “volume leading price” – which is absolutely crushing the level it reached at the 2011 high, and which appears to be pointing the way higher towards a rapid, reverse symmetry move into the $41 area…
Of course, time will tell!
Best regards –