G Mining Ventures Corp: Positive Earnings Call Highlights

G Mining Ventures Corp ((TSE:GMIN)) has held its Q1 earnings call. Read on for the main highlights of the call.

In a recent earnings call, G Mining Ventures Corp presented a generally positive outlook, highlighting strong production metrics and financial performance. Despite facing operational challenges such as weather impacts and SAG mill downtime, the company showcased robust development progress at Oko West, supported by significant resource growth and feasibility validation.

Strong Production and Cost Performance

G Mining Ventures reported producing 35,578 ounces of gold at a cash cost of $689 per ounce and an all-in sustaining cost (AISC) of $960 per ounce. This achievement places the company in the first quartile of cost performance, even amidst challenging weather conditions.

Financial Highlights

The company recorded an adjusted EBITDA of $69 million and free cash flow of $36 million, with revenue reaching $98 million at an average realized gold price of $2,766 per ounce. G Mining Ventures ended the first quarter with a robust cash position of $149 million.

Oko West Development Progress

Significant progress was made at the Oko West project, with interim environmental permits secured and early works activities commenced. The feasibility study confirmed Oko West’s Tier 1 potential, projecting a 12-year mine life and an average annual gold production of 350,000 ounces.

Safety Achievements

The company reported zero lost time injuries during the quarter, highlighting the strength of its safety culture and commitment to maintaining a safe working environment.

Resource and Reserve Growth

G Mining Ventures published updates showing substantial increases in resources and reserves. Indicated resources now total 9.4 million ounces, inferred resources stand at 1.2 million ounces, and global reserves have increased by 4.6 million ounces year-over-year to 6.7 million ounces.

Impact of Heavy Rainfall

Heavy rainfall posed challenges by impacting access to higher grade benches at TZ. However, the company mitigated these challenges through substantial surface stockpiles.

SAG Mill Downtime

The company experienced unscheduled downtime due to the replacement of damaged SAG mill poly-met liners, which affected throughput, averaging 78% of nameplate capacity.

Higher Effective Tax Rate

G Mining Ventures reported a consolidated effective tax rate of 48%, higher than Brazil’s statutory rate of 34%. This was primarily due to pretax losses in non-Brazilian subsidiaries where no deferred tax assets were recognized.

Forward-Looking Guidance

Looking ahead, G Mining Ventures aims to produce between 175,000 and 200,000 ounces of gold for the year, with over 56% of production expected in the second half as grades and throughput increase. The company also anticipates a construction decision for the Oko West project in the second half of the year, with the project projected to have a 12-year mine life and an average annual production of 350,000 ounces at a first quartile AISC of $1,123 per ounce.

In summary, G Mining Ventures Corp’s earnings call reflected a positive sentiment, with strong production and financial metrics despite some operational hurdles. The company’s strategic focus on resource growth and development at Oko West, alongside its commitment to safety and cost efficiency, positions it well for future success.