Ahead of Thursday's opening bell, Toronto-based Anaconda Mining (TSX:ANX)(OTCQX:ANXGF) released results from the latest quarter ended June 30, 2018 showing a decline in revenue, a smaller net loss despite added expenses from an abandoned takeover attempt when compared to the year prior quarter, and improvement for the first six months of the year.
Management also revised guidance to reflect what is expected to be lower cash costs per ounce sold on the back of strong operational performance in the first half of the year.
For the quarter, Anaconda generated revenue of $7.45 million compared to $7.83 million in the year earlier quarter. Due to changing its fiscal year-end date last year from May 31 to December 31, the comparative quarter for 2017 was actually the three months through May 31.
For the six months ended June 30, 2018, revenue was $15.05 million, up from c$13.90 million a year earlier.
In all, 4,330 ounces of gold were sold during the recent quarter at an average realized price of $1,695 per ounce.
Cost of operations were slashed to $6.18 million for the first six months of the year from $11.1 million in 2017. To wit, Anaconda said it now sees operating cash costs per ounce sold dropping from $1,100 to below $1,000 during 2018.
This is also in part to transitioning to higher-grade production from the Stog'er Tight deposit at the company's Point Rousse project in Newfoundland and Labrador.
Net loss for the quarter came in at $549,543, or one cent per share, which included C$740,018 in costs related to the takeover bid for Maritime Resources (TSX-V:MAE).
Last month, Anaconda withdrew its offer to acquire Maritime after MAE management and shareholders resisted the merger deal. Minus these costs, Anaconda would have posted a net profit of $190,475. In the year prior quarter, a net loss of $1.89 million was logged. For the first half of 2018, net loss was $400,325, versus $2.83 million in the comparable period of 2017.
In the first half of 2018, Anaconda invested $2.7 million in its exploration and development projects, including $2.0 million on the Goldboro Gold Project in Nova Scotia. Yesterday, Anaconda said it received the permits to go ahead with a 10,000-tonne underground bulk sample at the Goldboro project.
At the end of the quarter, the company had $7.9 million in cash on hand, plenty to continue its exploration efforts at Goldboro, the Argyle deposit and Point Rousse.
Shares of ANX closed trading Wednesday at $0.31, up 5.1% on the day. U.S.-listed shares of ANXGF gained 6.7% on the day to $0.2422
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