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Resource Clips


Posts tagged ‘Atna Resources Ltd (ATN)’

Clarifying cash costs

June 27th, 2013

The World Gold Council wants miners to report expenses more thoroughly

by Greg Klein

According to convention, gold can be mined for a few hundred bucks an ounce. Or, when byproduct metals are factored in, for less than nothing. But that method of reporting cash costs might be coming to an end, thanks to the World Gold Council. On June 27 the agency prodded companies to report “all-in sustaining costs” and “all-in costs metrics” to include “additional costs which reflect the varying costs of producing gold over the life cycle of a mine.” That includes exploration.

The guidelines aren’t compulsory, even for WGC members. Nevertheless council spokesperson Terry Heymann said, “We expect that many will use these new metrics, providing further consistency for investors and other stakeholders.”

The World Gold Council wants miners to report expenses more thoroughly

Goldcorp’s Porcupine fleet comprises just one of many mining expenses. With the company’s predicted all-in sustaining costs already close to the price of gold, total all-in costs would be even closer under the
World Gold Council’s new guidelines.

The WGC, which describes itself as “the market development organization for the gold industry,” devised the formula in consultation with its mining company members. Some of them began reporting all-in sustaining costs earlier this year. Barrick TSX:ABX explained its new approach in February. “Our current definition of all-in sustaining cash costs starts with total cash costs and adds sustaining capital expenditures, general and administrative costs, mine site exploration and evaluation costs, and environmental rehabilitation costs.”

As a result the company reported traditionally calculated cash costs for 2012 at $584 per ounce of gold, but all-in sustaining costs of $972. The company predicted 2013 cash costs holding firm at $584 but a drop in all-in sustaining costs to $945.

The previous month Goldcorp TSX:G explained that it considered “byproduct cash costs, sustaining capital, corporate general and administrative expenses and exploration.” But “as the measure seeks to reflect the full cost of gold production from current operations, new project capital is not included in the calculation.”

The company’s 2012 cash costs came to $645 or, after factoring in credits for other metals, a measly $315 an ounce. (Byproduct credits have given other companies negative cash costs.) But under the all-in sustaining cost formula, Goldcorp reckoned $865 an ounce for 2012. The company’s January statement forecast 2013 all-in sustaining costs at $1,000 to $1,100 an ounce, attributing the increase to inflation and “the impacts of lower grades and byproduct production at Peñasquito,” the company’s second-largest producer.

Newmont TSX:NMC and Yamana TSX:YRI ranked among others reporting all-in sustaining costs. The WGC suggests others start the next calendar year with the new guidelines.

But those announced June 27 go further than all-in sustaining costs. Now considered are costs not related to current operations: community, permitting, and reclamation and remediation. Also included are non-sustaining costs: exploration and study, capital exploration, capitalized mine development and other capital expenditures. Added together, they form the “all-in cost.”

Not factored in, however, are income tax, working capital, financing charges, “costs related to business combinations, asset acquisitions and asset disposals [and] items needed to normalize earnings, for example impairments on non-current assets and one-time material severance charges.”

The WGC considers the new approach “helpful to investors, governments, local communities and other stakeholders in understanding the economics of gold mining.” Presumably that might help clarify discussions about investment return, royalties and community benefits.

Of course the guidelines come at a time when bullion prices are falling towards or even below inflationary costs. Among last week’s most widely publicized mining news was Barrick’s announcement that it was slashing 100 desk jobs. Looked at less dramatically, that amounts to about 0.004% of the company’s 25,000 employees.

More troubling news, however, came from smaller companies. Golden Minerals TSX:AUM, Huldra Silver TSXV:HDA and Atna Resources TSX:ATN have all suspended mining over the last week, while Troy Resources TSX:TRY cut pay, staff and exploration, among other expenses. In a statement accompanying Troy’s June 27 announcement, CEO Paul Benson said, “Although we are bullish on the gold price over the medium and longer term, we will position the company to operate in the current price environment and any rise in the price of gold will be a bonus.”

Atna reports Nevada Results up to 1.8 g/t Gold over 117.3m

November 15th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningAtna Resources Ltd TSX:ATN announced assays from its Reward Gold Mine in Nye County, Nevada. Results include

1.8 g/t gold over 117.3 metres
(including 4.46 g/t over 27.4 metres)
0.89 g/t over 45.7 metres
(including 1.36 g/t over 16.8 metres)
0.98 g/t over 41.1 metres
(including 1.85 g/t over 9.1 metres)
0.93 g/t over 41.1 metres
(including 1.89 g/t over 9.1 metres)
1.17 g/t over 27.4 metres

President/CEO James Hesketh stated, “The 2011 drill program produced very encouraging results and should help strengthen the economics of the project. Gold mineralization along the southeastern 305 metres of the main deposit has been expanded to the east by up to 60 metres and remains open to further extensions. This program clearly indicates the potential to expand and increase mine life at Reward.”

View Company Profile

Contact:
James Hesketh
President/CEO
303.278.8464

or Valerie Kimball
Investor Relations
877.692.8182

by Greg Klein

Atna reports Nevada Results as high as 1.1 g/t Gold over 61m

October 25th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningAtna Resources Ltd TSX:ATN announced assays from its Reward Gold Project in Nye County, Nevada. Results include

1.1 g/t gold over 61 metres
(including 3.15 g/t over 9.1 metres)
2.72 g/t over 19.8 metres
(including 5.34 g/t over 7.6 metres)
0.72 g/t over 70.1 metres
(including 1.14 g/t over 21.3 metres)
1.3 g/t over 21.3 metres
(including 2.46 g/t over 9.1 metres)
0.64 g/t over 42.7 metres
0.89 g/t over 21.3 metres

President/CEO James Hesketh remarked, “Early results from our September drilling program indicate that we have yet to define the limits of the Reward Gold Deposit. Several of the holes have thicknesses and grades significantly better than the deposit’s average and extend the known gold mineralization further to the east and southeast. These encouraging results justify additional drilling to further increase reserves and to increase the expected mine life at Reward.”

View Company Profile

Contact:
James Hesketh
President/CEO
303.278.8464

Valerie Kimball
Investor Relations
877.692.8182

by Greg Klein

Atna reports California Gold Assays including 1.91 g/t over 25.9m

October 13th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningAtna Resources Ltd TSX:ATN announced assays from its Briggs Mine in Inyo County, California. Results include

1.24 g/t gold over 18.3 metres
1.14 g/t over 13.7 metres
1.91 g/t over 25.9 metres (including 3.85 g/t over 12.2 metres)
1.16 g/t over 33.5 metres
1 g/t over 15.2 metres
1.05 g/t over 25.9 metres (including 1.83 g/t over 10.7 metres)

President/CEO James Hesketh stated, “Our 2011 drilling program at Briggs significantly expanded the size of the mineralized zones in Deep Briggs, Main Briggs and North Main Briggs. Work is underway to model the gold zones to produce a new resource and reserve statement for the mine. Drilling now has shifted to the Reward Project in Nevada, where we hope to have similar success in increasing the resource base.”

View Company Profile

Contact:
James Hesketh
President/CEO
303.278.8464

or Valerie Kimball
Investor Relations
877.692.8182

by Ted Niles

Atna reports California Gold Assays including 1.23 g/t over 39.6m

March 22nd, 2011

Atna Resources Ltd TSX:ATN announced results from the Deep Briggs and East Wall Zones of its Briggs Mine in Inyo County, California. Assays include 1.23 g/t gold over 39.6 metres (including 1.37 g/t over 15.2 metres) and 1.1 g/t over 19.8 metres.

President/CEO James Hesketh said, “These results demonstrate our ability to find new resource potential at Briggs and may lead to a material increase in the gold mineral resource in the Briggs Deep and East Wall zones. Furthermore, the intersections include higher than average mine grade mineralization that will undoubtedly help in development of additional economic reserves. This drilling program is likely to achieve the goal of adding to ore reserves and mine life at the Briggs Mine.”

View Company Profile

Contact:
James Hesketh
President/CEO
303.278.8464

by Ted Niles