Fred Stanford, President & CEO of Torex stated: Having successfully emerged from the blockade, we are pleased to announce solid second quarter results, from near-record level gold production. These operational results reflect the impressive success our team has had in dealing with the uncertainty of a restart and ramp up.
Jorge A. Ganoza, President and CEO, commented, Our financial results for the second quarter of 2018 continue to reflect San Jose´s strong silver and gold production during the year resulting in the Company´s record adjusted EBITDA for the second quarter and first half of 2018 of $35.2 million and $67.0 million. Mr. Ganoza concluded, Free cash flow for the second quarter and first half of 2018, excluding Lindero construction costs, totaled $9.1 million and $28.0 million. This attests to the capacity of our business to translate high margins into free cash flow, contributing significantly to our strong liquidity position.
We continued to deliver steady financial and operating results for the second quarter of 2018, and while our gold and silver production was lower than the comparable quarter of 2017, our copper production increased by 31%, and silver equivalent production increased by 6% said David Wolfin, President and CEO. We were very pleased to announce the commissioning of Mill Circuit 4 in June, which is a significant investment in Avinos growth, and we continue to focus on completing the paste backfill engineering and we are looking forward to a future construction decision on the paste backfill plant.
“Our operations continue to generate robust cash flow with mine operating earnings up 22% compared with the same quarter last year,” said Michael Steinmann, President and Chief Executive Officer of the Company. “We are realizing the benefits of increased throughput from the expansions of our La Colorada and Dolores mines, in addition to strong performance and low costs across all our other mines during the quarter.”
Commenting on the Papago 17 concession grant, Oroco President Craig Dalziel stated “We are very pleased that we have been able to realize the granting of the Papago 17 concession, which is so important to our land assembly initiatives in the Santo Tomas area. The Papago 17 concession hosts the most likely opportunity to increase the known area of the Santo Tomas mineralization zone, gives Oroco a certain foothold in the overall Santo Tomas project, and provides Oroco with an immediate exploration target while we work to resolve the title issues on the core concessions.”
With strong consolidated production realized from Premiers mining operations during the first half of the year, we have fully paid down the Companys debt and expect to meet or beat consolidated annual gold production guidance in 2018 stated Ewan Downie, President and CEO of Premier. Our cash position will fund the near-term development of three additional deposits from within our project portfolio, including the construction of two new mining operations at the South Arturo JV in Nevada that are now underway.
“We are greatly encouraged by the robust width and grade intersected in hole 6, confirming the Margarita vein continuity for 500m”, commented Ruben Padilla, VP Exploration of Sable Resources. “Results for pending holes which test the Margarita structure further at depth and along strike are expected shortly.”
We are excited to see our fully funded exploration drilling program at the Toughnut Property advance as planned and are encouraged by the observation of visible gold in two holes so far. We look forward to assay results being released in the coming weeks, said Michael McPhie, President and CEO of Prize. Further, despite difficult public markets we have been able to raise significant funds and establish key relationships with a great new investor group. We have had to extend the closing of our second tranche of financing a few more days upon request from our lead order due to summer schedules. With the proceeds of this financing, the Company will be fully funded to begin drilling at the Manto Negro Copper Project in Mexico later this month and execute on our overall business strategy for the Company.
By acquiring Marlin, post spin-out of certain loans and assets, shareholders of Golden Reign (to be renamed Mako Mining Corp.) will benefit from the producing La Trinidad Gold Mine in Mexico, over $6,000,000 in cash and no debt, and an unencumbered, fully permitted, high grade gold development asset in Northern Nicaragua. With the issuance of new shares at an exchange ratio of 0.5138, Golden Reign will be issuing 91.2 MM new shares in connection with this transaction, which will bring its shares issued and outstanding to 283.4 MM, stated Kevin Bullock, CEO of Golden Reign.
The exploration success we have seen across the portfolio in recent quarters continues, said Phillips S. Baker, Jr., President and CEO. The teams at Casa Berardi, Greens Creek and San Sebastian are discovering high-grade material, both at surface and at depth. A new focus is our 110-square-mile land package in Nevada where we are integrating the existing exploration team and ramping-up drilling.
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