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Be the first with the news that moves the market- Superior Gold (TSXV:SGI) have posted record revenues of C$160 million
- Gold prices climbed high in 2019 as volatility spooked investors
- Production at their West Australian Plutonic Gold Underground mine dipped
- The company ended the year with $30 million in cash, $6.9 million higher than 2018
- Superior Gold (TSXV:SGI) shares are trading at $0.60 per share with a market cap of $50 million
Superior Gold (TSXV:SGI) has posted record revenue for 2019, raking in C$160 million from their West Australian gold mine.
The Plutonic Gold underground mine’s production dipped from a record high of 901.101 ounces in 2018 to 83,035 ounces in 2019.
However, average gold prices surged nearly C$300 higher than 2018’s average, ensuring that the company brought in substantially more than anticipated.
The realised gold price hit a record of $1,924 per ounce in 2019, up from $1,605 in 2018.
Superior Gold President and CEO, Chad Bradbrook, said the company’s position kept them at an advantage, relevant to their peers.
“We are pleased to report record revenues for 2019, which was the result of achieving our full year revised production and cost guidance, coinciding with a record realised gold price.
“We exited the year with a cash balance of $22.3 million.
“Our focus in 2020 remains on completing the development work required to execute our five year underground life-of-mine plan, announced in late 2019,” he said.
However, Superior Gold’s mine is currently wrestling with a bevy of problems.
Production in 2020’s first quarter was always going to dip, as the company focused on mineralised areas outside of the life-of mine-plan.
But the problems have compounded far beyond expectations.
The company’s underground mine hit issues with the arsenic level in sections of the mined areas.
The mine has suffered intermittent power outages, and WA’s storm season has led to heavy rainfalls, further slowing production.
As a result, quarterly production is expected to hit 15,000 to 16,000 ounces, a potential 5000 ounce drop in production.
Superior Gold does expect the mine to return to full production in Q2 of this year.
Superior Gold (SGI) was down 16.6 per cent with a per share price of C$0.50 at 10:20am EST.
