- Shares in Inca One Gold (IO) have taken a dive today following news of a drop in third quarter gold production
- For the three months ending September 30, the company produced a total of 3,472 ounces, representing a 47 per cent decline compared to 6,532 ounces in the same period last year
- While a major drop, it represents a significant improvement compared to production in the second quarter of 2020, which totalled just 1,920 ounces
- The company said it is now focusing on higher processing levels in preparation for first deliveries from PPX Mining pursuant to a deal signed in July this year
- Inca One Gold (IO) is currently down 10 per cent to C$0.54 per share
Shares in Inca One Gold (IO) have taken a dive today following news of a drop in third quarter gold production.
The Vancouver-based company operates two fully-integrated mineral processing facilities, the Chala One and Koricancha plants, and is considered to be Peru’s largest publicly-traded gold processor according to permitted capacity.
For the three months ending September 30, total gold production fell 47 per cent compared to the same period last year, from 6,532 ounces to 3,472 ounces. While this represents a substantial decline, it’s a major improvement in comparison to the company’s second quarter production of 1,920 ounces.
The company said this came from a bolstered effort by its sales teams to recover from the damage caused by the COVID-19 pandemic, which included building up supplies as well as increasing deliveries and processing.
With the relaxation of domestic travel restrictions, Inca One was also able to capitalise on a greater flow of minerals, which was boosted by an 89 per cent increase in throughput compared to the second quarter.
However, total throughput for the third quarter was down 52 per cent compared to last year, from 13,275 tonnes to 6,377 tonnes.
Edward Kelly, President and CEO of Inca One Gold, noted that the improvements in deliveries and processing allowed the resumption of operations at its Chala One Plant, which had previously been suspended.
“And despite the near total economic shutdown of the country, Inca One was able to continue operations at reduced levels by utilising strict state approved COVID-19 quarantine and sanitation protocols.
“This allowed the company to scale up operations rapidly as mineral supplies increased,” he said.
Inca One is now looking to achieve higher processing levels in preparation for first deliveries from PPX Mining, pursuant to a supply agreement signed in July this year.
Inca One Gold (IO) is currently down 10 per cent to C$0.54 per share at 2:01pm EDT.