On the strength of higher gold production from the Kori Kolla mine in Bolivia, Battle Mountain Gold (NYSE) posted a profit for the first quarter.
Net income was US$2.5 million which, after a preferred shareholder dividend, was reduced to US$613,000 (or 1 cents per share). This compares with a profit of US$979,000 (or 1 cents per share) for the same period last year.
Gross revenue was US$56.1 million, compared with US$52.8 million a year ago. And gold production was 7% higher than expected as a result of an 18% increase from the Kori Kolla, which produced 71,000 oz. in the quarter. The company hopes production will increase by 17% for the year, to 570,000 oz.
It also hopes to advance the permitting process for the Crown Jewel gold project in Washington state, with a draft environmental impact statement (EIS) expected in June.
Meanwhile in Papau New Guinea, landowner agreements were recently signed which affect the Lihir gold deposit. The agreements form the second in two key elements in developing the project. The first was the signing of the special mining lease by the government.
Niugini Mining, which is 51% owned by Battle Mountain, will pay RTZ US$48 million for 16% of the project, bringing its share to 30%.
Ownership of the operating company, Lihir Gold, will include Niugini with 30%; a subsidiary of RTZ, Southern Gold (Bahamas), with 40%; and Mineral Resources Lihir (owned equally by the Papau New Guinea government and landowners) with 30%.
In other company news, Battle Mountain’s recent proposal to merge with Crown Resources (TSE) has been rejected by Crown.
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