G Mining Ventures Corp. (TSX: GMIN) has reported its third-quarter 2024 results, a milestone moment for the company as it transitioned into commercial gold production. The results mark the first full period reflecting activity at the Tocantinzinho gold mine in Brazil.
Revenue for Q3 2024 reached $43 million, off the back of the sale of 17,144 ounces of gold at an average realized price of $2,508 per ounce.
Production volumes for the quarter were 22,071 ounces of gold, with 17,144 ounces sold and the remainder carried as inventory. The average recovery rate was 84.5%, slightly below the company’s target of approximately 90%, which is expected to be achieved in Q4 2024. 716,000 tonnes of ore were processed at an average grade of 1.20 g/t.
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All-in sustaining costs meanwhile came in at $1,226 per ounce.
The company reported net income of $24.3 million for the quarter, translating to earnings per share of $0.12.
Operating cash flows were $1.7 million for the three month period, highlighting the capital-intensive nature of the current operations and ongoing commissioning expenses. Free cash flow for the quarter was negative at $(6.2) million, compared to $(22.8) million for the year-to-date period, as the company recovers from its transition to production period.
The company’s cash position as of September 30, 2024, stood at $104.6 million, a substantial improvement from $52.4 million at the end of 2023. This increase reflects proceeds from private placements and the exercise of warrants, totaling $105.9 million year-to-date.
But with current liabilities of $165.9 million and long-term liabilities of $317.8 million, including debt and contractual obligations, the balance sheet appears stretched.
Looking ahead, the firm’s Q4 2024 production target of 30,000–40,000 ounces will be a key indicator of its ability to scale operations. Management has also committed to providing 2025 production guidance in January.
G Mining Ventures last traded at $10.46 on the TSX.
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