In the stock market, there are often arguments over market valuation as a metric derived as a multiple of revenue. While we haven't performed any deep analysis, those that put emphasis on that metric could likely make a case for Anaconda Mining Inc. (TSX:ANX), given the miner's results from the 2017 fiscal year, ended May 31, 2017, released on Friday.
The Toronto-based gold miner is focused on exploration and development in Newfoundland and Nova Scotia.
Across the year, Anaconda sold 15,562 ounces of gold, in line with guidance for sales in the range of 15,500-16,000 ounces. Revenue (all figures in Canadian dollars) for fiscal 2017 rose 5% from fiscal 2016 to $25.7 million.
Not every bit of revenue was from gold bars, the company also recorded about $900,000 in sales from waste rock for aggregate.
The average price of an ounce of gold sold was $1,651, right in the middle of the range Anaconda previously forecast. All-in sustaining costs, which included capex, administration expenses, exploration costs and more, were also in line with guidance, coming in at $1,735 per ounce.
In total , earnings before interest, taxes, depreciation and amortization (EBITDA) was $6.31 million, led by $8.0 million in EBITDA at the company's Point Rousse project in the Baie Verte Mining District in Newfoundland, which includes the Pine Cove open pit mine. Throughput at Pine Cove increased 8% to 1,223 tonnes per day, while increasing grade over fiscal 2016.
Net loss, which the company blamed mostly on non-cash charges, was $3.6 million.
Throughout the year, Anaconda made substantial corporate additions, including the acquisition of Orex Exploration, a new tailings and polishing pond, mill upgrades, dock facility and production stripping assets, to name a few things.
At a $28.6-million market cap, Anaconda nearly hit that mark in revenue for the year, but Bay Street apparently was more focused on the net loss. Shares were flat in Friday morning trading at 7.5 cents each.
