13 August 2020
TMAC Resources Inc. reports its financial results for the second quarter of 2020.
Q2 2020 Highlights:
Jason Neal, President and Chief Executive Officer of TMAC, stated, “We expect that the operations will be able to continue at reduced levels and generate sufficient cash flow to cover expenditures for at least the remainder of the year. However, as part of the reduced operating plan, TMAC will only operate the processing plant approximately half the time, processing newly mined tonnes and remaining stockpiles on a campaign basis for three weeks at a time. We are forecasting production of approximately 34,000 to 39,000 ounces during the second half of 2020 and 95,000 to 100,000 ounces during full year 2020. As a result of the reduced operating plan, we have unfortunately had to reduce our workforce to align expenditures with production, and development expenditures remain substantially deferred. I am very proud of the hard work and dedication of the TMAC employees during the COVID-19 pandemic, and I am happy to report that we currently have no confirmed cases of COVID-19 at the Hope Bay site or any of the Company’s offices. We continue to monitor and evaluate the progression of the COVID-19 pandemic and its potential effects on our operations, liquidity and workforce at Hope Bay.”
Jason Neal concluded, “We continue to work with Shandong Gold Mining towards closing of the sale transaction. The sale transaction will position Hope Bay for the next phase of operational improvement and capital investment required to generate a robust and long-life operation. The transaction is subject to the receipt of approval under the Investment Canada Act, which is ongoing. As a result of Bill C-20, which came into effect July 27, 2020, and the related Ministerial Order issued on July 31, 2020, the Minister of Innovation, Science and Industry has extended the timeline to determine whether to initiate a national security review in respect of the transaction until October 19, 2020. The Company now expects closing of the transaction to occur in the fourth quarter of 2020, but it may extend to the first quarter of 2021. The extension to timelines from the recently enacted legislation means that the Government of Canada may not have completed its regulatory review process and provide Investment Canada Act approval by February 8, 2021, which is the extended outside date in the arrangement agreement at nine months post-announcement.”
All amounts are in Canadian dollars, unless otherwise indicated.