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Excelsior Increases Gold Production Guidance

Excelsior Increases Gold Production Guidance
The gold miner commenced its first ore delivery to the Paddington Mill in December 2015.
Mar 14, 2016 By Ben Khouri Tags: EXG

The gold miner Excelsior Gold Limited (ASX:EXG) has announced that their production guidance for the six months to June 2016 is between 300,000-320,000 ounces. Interim production estimates from its three small open pits is approximately 132,000 tonnes. 

The gold miner further advised that the first phase of mining at the Kalgoorlie North Gold Project will be concluded this week, with mining being finalized within the Castlereagh, Jackorite and Big Blow South operations. Furthermore, the company’s next phase of the mining operations has already started, with two mining fleets in working order within the Zoroastrian Central open pit, along with a third smaller fleet preparing to start mining in the high grade Zoroastrian Extended Pit. 

AISC (All-In Sustaining Costs) over this period are estimated to be around A$1,270 per ounce. According to Excelsior, the increase in per unit costs is attributable to the higher earthmoving costs that are associated with the waste removal within the upper part of the Zoroastrian Central open pit. Moreover, the AISC also includes the loan servicing costs that is associated with the A$4.5million that is within the Macquarie Bank loan facility. A$3.18million remain undrawn, with it being available for additional working capital.

The gold miner commenced its first ore delivery to the Paddington Mill in December 2015. The company had received A$4.07million in upfront cash payment from Norton Gold Fields Ltd, out of total provisional revenue of A$9.92million. Excelsior is anticipating a further A$413,000 payment from Norton this week. The remaining revenue of approximately A$5.44million will be due for payment by Norton, as soon as the final gold recovery data is received for each of the ore batches.

The company currently has A$3.3million cash reserves on hand, alongside an undrawn loan facility of A$3.18million. The company has working capital of around A$6.48million.

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Ben Khouri Author: Ben Khouri Mar 14, 2016

Ben Khouri is a financial editor for Wise-Owl with a particular focus on the top ASX 300 companies. Having a vast background in economics and finance, Ben provides financial commentary & analysis as well as global market updates, which guide investors in devising investment strategies. Ben specialises in analysing economic data and global events from around the world and examines the impacts they have on the major equity markets.

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