8 November 2018
TMAC Resources Inc. reports its operating and financial results for the third quarter of 2018.
Jason Neal, President and Chief Executive Officer of TMAC, stated, “TMAC is pleased to report record performance in the third quarter, including tonnes mined, tonnes processed, gold production and gold sales, but we are more excited about the progress we have made that will drive further substantial improvement in our operating and financial results. After a difficult July to open the quarter, the processing plant improved to average 80% recoveries for the full quarter, and then in October exceeded our ramp up expectations with throughput of 1,900 tonnes per day while maintaining recovery of 82%. Our investments in the processing plant to improve recoveries through additional gravity concentrators and other modifications are well advanced with the Knelson XD20s online and both the Falcon SB1350s and the Falcon C2000s are being installed in November.”
Mr. Neal continued, “Mine production improved modestly in the third quarter, but development activity substantially opened up mining at the Doris Hinge, Doris BTD and Doris Crown Pillar by mid-October and drove October mine production to 1,975 tonnes per day. Our permitting activity at Madrid and Boston is now one quarter ahead of the schedule we had previously communicated. With expected receipt of the Type A Water Licences for Madrid and Boston in Q1 2019, we are now assessing Madrid North development which may deliver ore to the Plant in 2019. We have also concurrently released today strong drilling results at Doris and Madrid North, including at Naartok East where recent shallow drilling has delivered grade and strike extent materially beyond what was predicted in our current model of the near surface expression. The balance sheet has been substantially strengthened with a $90 million equity financing, supported by the largest shareholders of our Company, which closed in early October. At the end of October, we made principal payments and prepayments against our debt to reduce the balance from US$160.0 million to US$125.8 million and, by the end of January, our debt will be further reduced to US$117.0 million.”
The company achieved record gold production of 33,100 ounces during the third quarter. Gold sales of 32,140 ounces during the third quarter produced record revenues of $50.3 million with cost of sales of $50.0 million, resulting in a profit from mining operations of $0.3 million. The net loss totalled $3.3 million, or $0.04 per share on a basic and fully diluted basis and EBITDA (1) totalled $15.7 million. Increased production resulted in the generation of positive cash flows from operations of $6.1 million.