WRAP UP: Miners offer production and cost guidance

This is the time of year that many mining companies release their preliminary 2016 production numbers and guidance for 2017. Cameco Corp. […]
The Eagle River underground mine will be responsible for about 85% of Wesdome’s 2017 output.
This is the time of year that many mining companies release their preliminary 2016 production numbers and guidance for 2017. [caption id="attachment_1003716790" align="alignright" width="300"] The Eagle River underground mine will provide about 85% of Wesdome’s 2017 output.[/caption] Cameco Corp. of Saskatoon, SK, said it delivered 13.5 million lb of uranium at an average realized price of US$54.46/lb in 2016. But the company expects to register a net loss for 2016 due in part to asset impairments. To further reduce costs and boost efficiency, Cameco says it will reduce the workforce at its Saskatchewan mines by 120 employees by the end of May 2017. Additional plans for 2017 will be announced Feb. 9 along with full annual results for last year. (www.Cameco.com) Toronto’s Centerra Gold produced 598,677 oz in 2016. The Kumtor mine in the Kyrgyz Republic was responsible for 248,479 oz. The company also recorded 58.5 million lb of copper from the Mount Milligan copper-gold mine in British Columbia. Looking toward this year, Centerra expects to produce between 715,000 and 795,000 oz of payable gold production. Payable copper production will be between 55 million and 65 million lb. All-in sustaining costs on a by-product bases will be between US$743 and US$824 per oz. (www.CenterraGold.com) Hudbay Minerals of Toronto put its 2016 production of copper at 174,491 tonnes, of zinc at 110,582 tonnes, and of precious metals at 167,951 oz, all within the guidance provided by the company. This year’s guidance numbers are down for copper (132,500 to 157,500 tonnes), up for zinc (125,000 to 150,000 tonnes), and roughly the same for precious metals (145,000 to 175,000 oz). Combined unit costs for the Manitoba operations are up slightly to between C$88 and C$108 per tonne of ore processed, due mainly to reduced ore output at the 777 mine. In Peru, costs per tonne processed will be between US$7.20 and US$8.80. (www.HudbayMinerals.com) Last year’s production from the operations of Vancouver’s Imperial Metals Corp. totaled 119.17 million lb of copper, 94,930 oz of gold and 330,960 oz of silver, well up from the previous year. In 2015 the company recorded 83.61 million lb of copper, 44,710 oz of gold and 224,530 oz of silver. (www.ImperialMetals.com) Toronto-based Primero Mining Corp. said it produced 176,139 oz of gold equivalent in 2016, consisting of 156, 052 oz of gold and 5.3 million oz of silver. The all-in sustaining cost was expected to be US$1,326 per oz. Streamlined operations at the San Dimas and Black Fox mines are expected to reduce costs this year. Primero will offer its 2017 guidance and cost numbers in mid-February. (www.PrimeroMining.com) Wesdome Gold Mines of Toronto said it earned $81.6 million in 2016 from the sale of 48,680 oz of gold at an average price of C$1,676 per oz from its Eagle River complex in Northern Ontario. Combined gold production from the Eagle River underground and Mishi open pit mines is expected to range between 52,000 and 58,000 oz. All-in sustaining costs will be similar to this year at C$1,450 to C$1,550 per oz (US$1,075 to US$1,150 per oz). (www.Wesdome.com)


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