Premier Reports Q1 2019 Operating Results
May 8, 2019
Elemental Royalties Limited, (“Elemental”), a private company expanding a diversified portfolio of mineral royalties, is pleased to comment on the recent announcement made by Premier Gold Mines Limited (“Premier”) of that company’s Q1 2019 operating results. Premier is the operator of the Mercedes gold-silver mine located in State of Sonora in northern Mexico, on which Elemental Royalties holds a 1% NSR royalty subject to a production hurdle.
Elemental is pleased to note that Q1 2019 production at Mercedes was 17,614 Oz gold and 57,681 Oz silver compared with 15,009 Oz of gold and 57,370 Oz of silver during Q1 2018. The increased production is the result of higher grades mined within the new Rey de Oro and Lupita zones as well as consistent stope production from within the Diluvio zone.
Q1 unit operating costs at Mercedes, on a co-product basis, were cash costs of $806 and all-in sustaining costs (AISC) of $1,105 per ounce of gold sold. While the AISC reported by Mercedes for Q1 2019 exceeds annual guidance, Premier has weighted mine development toward the first half of 2019 and gold production toward the second half, so Elemental expects this to improve as the year progresses.
During Q1 2019 Premier incurred capital sustaining costs of $4.2M, representing over 40% of the 2019 annual capital sustaining cost budget for Mercedes. With gold production and operating costs at Mercedes tracking in line with the mine plan, the operator has confirmed it expects to meet its annual production and unit operating cost guidance.
Exploration activities continued during the quarter with a total of 7,659 feet of drilling targeting Diluvio, Marianas and Barrancas veins to replace reserves, support mine production, test extensions of the main mine trends and to test new geological targets.
The text above is Elemental Royalties’ comment to the operator’s news release and is not included within the original release. The original article is available using the links below.
About Elemental Royalties Limited
Elemental is a private company providing investors with exposure to a dividend-paying royalty company building a diverse portfolio of mining royalties, benefiting from ongoing royalty revenue, future exploration upside and low operating costs.
Since early 2017 Elemental has assembled a portfolio of five royalties over seven commodities in four countries, four of which cover producing mines. Immediate cash-flow has enabled the Company to limit dilutive fund-raisings to facilitate royalty acquisitions, and to pay a dividend from inception.
Elemental’s focus remains on securing royalties over advanced assets with established operators and credible counter-parties from a robust pipeline of potential royalty acquisitions across commodities and geographies.
For further information you are invited to visit the Company’s website www.elementalroyalties.com or contact:
|Elemental Royalties Limited|
|T: +44 (0)203 983 7040|
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