14 August 2019
TMAC Resources Inc. reports its second quarter 2019 financial results. All amounts are in Canadian dollars unless otherwise indicated.
Jason Neal, President and Chief Executive Officer of TMAC, stated, “The royalty transaction announced this morning strengthens the balance sheet with gross proceeds of $57 million to enable ongoing investment in growth at Hope Bay while providing a buffer against operational volatility as well as the funding support for our seasonal sealift. This transaction was determined to be the most attractive cost of capital, preserve the best participation in strengthening gold prices for our shareholders and has the benefit of maintaining both financial and strategic flexibility. TMAC reported consecutive quarters of earnings with a second quarter net profit of $0.01 per share on revenue of $66.1 million with an average realized gold price of US$1,310 per ounce. As previously reported, quarterly production has modestly declined as a result of reduced plant recovery from 84% to 80%, which in turn has contributed to an increase in AISC(1) and Cash Costs(1) to US$1,081 per ounce and US$729 per ounce, and US$1,036 per ounce and US$693 per ounce for the quarter and year to date, respectively.”