High River reduces Q3 gold output 5%
MOSCOW. Nov 17 (Interfax) - Canada's High River Gold Mines (HRG), which is controlled by Russia's Severstal group, reduced gold production 5% quarter-on-quarter to 91,057 oz or 2.8 tonnes in Q3 2011, the company said in a statement.
Total gold production decreased 5.0% to 91,057 oz (Q2 2011 - 96,093 oz). Total cash cost per ounce increased 2% to US$720 (Q2 2011 - US$704 per ounce).
The Zun-Holba and Irokinda Gold Mines in Russia produced 34,100 oz (Q2 2011 - 33,594) at a total cash cost of US$705 per ounce.
Gold production at Berezitovy, also in Russia, was 25,565 ounces (Q2 2011 - 28,746 ounces) (100%) at a total cash cost of US$ 787 per ounce.
The Taparko-Bouroum Gold Mine in Burkina Faso produced 31,391 ounces (Q2 2011 - 33,753) at a total cash cost of US$ 681 per ounce.
HRG said net gold revenue was $111.5 million, a decrease of 18% from $136.2 million in Q2 2011, an increase of 11% from $100.8 million in Q3 2010.
Net income was $41.3 million ($0.05 per share) compared to a net income of $41.4 million ($0.05 per share) in Q2 2011 and a net income of $24.0 million ($0.03 per share) in Q3 2010.
Cash flow from operations was $23.1 million, down from $42.9 million in Q2 2011, and from $26.3 million in Q3 2010.
Cash and cash equivalents decreased to $150.0 million from $207.3 million at the end of Q2 2011, and increased from $125.6 million at the end of Q3 2010.
Working capital decreased to $296.0 million from $307.2 million at the end of Q2 2011 and increased from $205.3 million at the end of Q3 2010.
Current and long term debt decreased to $22.7 million from $24.0 million at the end of Q2 2011 and increased from $22.1 million at the end of Q3 2010.
High River is an unhedged gold company with interests in producing mines, development and advanced exploration projects in Russia and Burkina Faso. Two underground mines, Zun-Holba and Irokinda, are situated in the Lake Baikal region of Russia. Two open pit gold mines, Berezitovy in Russia and Taparko-Bouroum in Burkina Faso, are also in production. High River also has a 90% interest in a development project, the Bissa gold project in Burkina Faso, and a 50% interest in an advanced exploration project with NI 43-101 compliant resource estimates, the Prognoz silver project in Russia.
Severstal's gold mining unit Nord Gold N.V. on 75.06% of HRG as of the end of August.