Loading...
01/10 16:34
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call presents mixed signals. Financial performance shows strong gold production and revenue, but high costs and regulatory uncertainties in Mexico pose risks. The Q&A reveals positive developments like FAST-41 status for South Railroad, but management's vague responses on key issues like Camino Rojo permits and dividends create uncertainty. Revised guidance with lower production and higher costs further tempers optimism. Given the company's small market cap, the stock price is likely to remain stable, resulting in a neutral prediction.
Gold production at Musselwhite Produced nearly 58,000 ounces of gold with a mill head grade of 5.87 grams per tonne and a gold recovery rate of 95.3%. This was supported by investments in new underground mobile equipment and preventative maintenance programs.
Gold production at Camino Rojo Produced 22,059 ounces of gold. Mining operations were temporarily suspended in July due to a pit wall event, but production continuity was maintained by processing existing stockpiles.
Gold sales and revenue Sold 79,000 ounces of gold at a realized price of $3,417 per ounce, generating approximately $270 million in revenue. Excluding the gold prepay impact, the average realized price was $3,508 per ounce.
Cash costs and all-in sustaining costs Consolidated cash costs were $1,200 per ounce of gold sold, and all-in sustaining costs were $1,641 per ounce of gold sold.
Net income Recorded net income of $49.3 million or $0.15 per share. Adjusted earnings were $73 million or $0.22 per share.
Cash flow from operating activities Generated $113 million or $0.13 per share before changes in non-cash working capital.
Exploration and project development costs Spent $39 million, with $13 million expensed and $26 million capitalized.
Cash balance and liquidity Cash balance at September 30 was $327 million, with total liquidity of $357 million, including the undrawn portion of the revolving credit facility.
Record Gold Production: Achieved record gold production at Musselwhite and Camino Rojo mines, contributing to record free cash flow.
South Railroad Project: Progressed towards final permits and construction start, aiming to increase annual production to 0.5 million ounces.
Nevada Expansion: Establishing an operating presence in Nevada with the South Railroad project, supported by strong community and stakeholder backing.
Mexico Collaboration: Strengthened partnership with Mexico through government collaboration and commitment to responsible mining practices.
Musselwhite Mine Productivity: Invested in new underground equipment and preventative maintenance, improving working conditions and productivity.
Camino Rojo Incident Management: Successfully mitigated impact of a pit wall event with no injuries or environmental damage, ensuring production continuity.
Growth Vision at Musselwhite: Focused on extending mine life and increasing production through aggressive exploration and operational improvements.
Sustainability Initiatives: Launched programs for environmental conservation, community development, and indigenous partnerships across operations.
Pit wall event at Camino Rojo: An uncontrolled material movement along the north wall of the open pit in July led to temporary suspension of mining operations. Although no injuries or equipment damage occurred, the incident required a stabilization plan, redesign of the pit wall, and mining resequencing, delaying access to higher-grade material and impacting production timelines.
Permitting challenges at South Railroad: The South Railroad project in Nevada is undergoing a complex permitting process, including environmental impact assessments and water-related permits. Delays in obtaining final approvals could postpone construction and production timelines, impacting the company's growth objectives.
Integration challenges at Musselwhite: The transition and integration activities at Musselwhite mine, following its acquisition, are still ongoing. Delays in completing data migration and establishing a decentralized model could affect operational efficiency and decision-making.
Regulatory uncertainties in Mexico: The pending approval of permits to expand the open pit and build an exploration drift at Camino Rojo faces regulatory uncertainties. Delays or denials could hinder the company's ability to execute its strategic plans in Mexico.
Economic and cost pressures: The company faces consolidated cash costs and all-in sustaining costs of $1,200 and $1,641 per ounce of gold sold, respectively. Rising costs could pressure margins, especially if gold prices fluctuate unfavorably.
Musselwhite Mine: Focus on near-term and longer-term opportunities for resource growth, expanded production, and mine life extension. Recent drilling indicates potential to extend mine life and increase production. Ventilation upgrades and underground infrastructure projects are on track for completion in early 2026.
Camino Rojo Underground Project: Preliminary economic assessment expected in 2026, with key development steps to advance it to a construction-ready project.
South Railroad Project: Moving toward final permits and construction start. Updates to be delivered in the weeks ahead. Targeting first gold production by early 2028. The BLM's Record of Decision is expected in Q2 2026, with on-site construction commencing thereafter.
Exploration Programs: Aggressive exploration at Musselwhite to expand resources and extend mine life. Initial results show high-grade mineralization, with further drilling planned into 2026. Camino Rojo underground exploration expanded by 5,000 meters to a total of 20,000 meters, with completion expected by year-end. South Carlin complex exploration nearing completion, with updates expected before year-end.
Capital Allocation and Funding: Strong cash position to self-fund South Railroad construction phase. Continued investments in exploration and potential shareholder returns under review.
The selected topic was not discussed during the call.
The earnings call presents mixed signals. Financial performance shows strong gold production and revenue, but high costs and regulatory uncertainties in Mexico pose risks. The Q&A reveals positive developments like FAST-41 status for South Railroad, but management's vague responses on key issues like Camino Rojo permits and dividends create uncertainty. Revised guidance with lower production and higher costs further tempers optimism. Given the company's small market cap, the stock price is likely to remain stable, resulting in a neutral prediction.
The earnings call reveals significant issues impacting the company's operations and financials, such as the uncontrolled material movement at Camino Rojo, resulting in reduced production guidance and increased costs. Additionally, permitting challenges and regional security risks pose further uncertainties. Although there are positive aspects like strong production at Musselwhite and debt reduction, the overall sentiment is negative due to the operational disruptions and lack of clear guidance on permitting issues. The company's small market cap suggests a potentially stronger reaction, supporting a negative stock price movement prediction.
The earnings call presents a mixed picture. The acquisition of Musselwhite Mine and strong cash flow are positive, but the lack of a shareholder return plan and a net loss due to financial instruments are concerning. The Q&A section reveals uncertainties around CapEx and exploration plans, which may dampen investor confidence. The company's small market cap suggests potential volatility, but the absence of strong catalysts or deterrents keeps the sentiment neutral, likely resulting in a stock price movement between -2% to 2%.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
