Elevation Gold (TSXV: ELVT) continues to lose money while mining gold. The company after the bell last night reported its first quarter financial results, posting a loss of $4.2 million for the three month period.
“As previously communicated, production during the quarter was impacted by continuing crushing plant throughput issues. For the second quarter, we are expecting a meaningful improvement in tons crushed, ounces produced and overall results,” commented CEO Tim Swendseid.
A total of 6,303 ounces of gold and 42,152 ounces of silver were produced by Elevation during the quarter. Ounces sold meanwhile amount to 5,850 gold ounces and 47,189 silver ounces, leading to revenue of $12.9 million for the period at an average realized price of $2,035 per gold ounce.
READ: Elevation Gold Shares Plummet On Royalty Payment Halt
Total cash costs per ounce of gold sold amounted to $1,598, while all-in sustaining costs came in at $2,437 per ounce. The results led to a loss from mine operations of $241,000, which after administrative expenses of $694,000, financing costs of $1.8 million, and a loss on derivative liabilities of $1.6 million, resulted in an overall loss for the period of $4.2 million.
Moving forward, Elevation is expecting stronger financial results in the second quarter due to an improvement in ore hardness and crusher throughput, as well as a shift in the mining area to the west, which is expected to result in “significant” efficiency improvements.
The company closed the quarter with a cash position of $325,000, with total current assets of $34.3 million and total current liabilities of $32.4 million.
Elevation Gold last traded at $0.10 on the TSX Venture.
Information for this briefing was found via Sedar, and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
