11 June 2020
TMAC Resources Inc. reports its financial results for the first quarter of 2020. All amounts are in Canadian dollars unless otherwise indicated.
Jason Neal, President and Chief Executive Officer of TMAC, stated, “In the first quarter, TMAC generated gross revenues of $59.4 million from sales of 27,710 ounces of gold. We produced 32,290 ounces of gold in the quarter. Gold sales were 12% higher and the average realized price of US$1,587 per ounce was 7% higher than the previous quarter. The cash cost for the quarter was US$906 per ounce and the all-in sustaining cost was US$1,317 per ounce. These costs were lower than the previous quarter due to increases in recoveries and grade, resulting in an increase in production. TMAC reported a loss of 16 cents per share, of which 14 cents per share was related to revaluation of US dollar debt.”
Jason Neal added, “We continue to operate the processing plant with material from stockpiles and limited mine production as part of our response to the COVID-19 pandemic. We expect to continue operating at a reduced level for the foreseeable future. Despite the pandemic, we have successfully completed the strategic process announced in January, which included a comprehensive review of a broad range of potential alternatives. As a result of this process, we reached an agreement with SD Gold, announced on May 8, 2020, and secured financing which should allow us to operate until the expected closing of the transaction. Ramping up to full operating levels would be pursued following the completion of the sale to SD Gold. More importantly, we have acted in the interests of all stakeholders to put Hope Bay on a new trajectory for long-term success.”