21 February 2019
The Company achieved record gold production of 34,080 ounces during the fourth quarter. Gold sales of 31,380 ounces at an AISC(1) of US$1,112/oz during the fourth quarter produced record revenues of $51.4 million at cost of sales of $44.3 million, resulting in a profit from mining operations of $7.1 million. The net loss totalled $13.5 million, or $0.12 per share on a basic and fully diluted basis and Adjusted EBITDA (1) totalled $15.7 million. Increased production resulted in the generation of positive cash flows from operations of $11.9 million before working capital changes and a negative $10.0 million after working capital changes, the difference is largely driven by October sealift payments.
Jason Neal, President and Chief Executive Officer of TMAC, stated, “TMAC is pleased to report record performance in the fourth quarter and a very significant annual improvement from 2017. For the 2018 year we approximately tripled mine production, doubled Plant throughput and increased recoveries from 65% to 79% for the full year and 82% for the fourth quarter. The ramp up of the Plant and mine is not completed, but we are most of the way there now. TMAC ended the year with a substantially better developed Doris mine that contributes to further ramp up, significant Plant retrofits that enable our targeted recoveries of at least 90% and throughput of at least 2,000 tonnes per day, permitting that allows us to begin developing Madrid and Boston, and an operating team capable of executing on our growth plans. Importantly, we are exploring the Hope Bay Belt again with at least $20 million in expenditures to extend Doris, ready Madrid North for development, increase Boston reserves and resources and begin evaluating the most prospective and proximate to infrastructure of our more than 90 identified regional targets. By the end of 2019 we expect to publish a revised prefeasibility study for the development of Hope Bay which will incorporate the ongoing evaluation of the best risk-adjusted plan for generating stakeholder value.”