- After a mid-July production update, junior gold miner Beacon Minerals (BCN) has revealed a cashflow-positive June quarter in its latest financial report
- The company made roughly $7.6 million from operating activities over the June quarter
- Beacon Minerals told shareholders it had $16.9 million on hand as of July 29
- However, Beacon can only start repaying its $18 million in debentured in October this year
- While this is a year earlier than the debentures’ due date, it means the company will remain in the full debt over the September quarter
- Still, Beacon says it is continuing to reduce operating costs
- Beacon Minerals is up 2.7 per cent this afternoon, currently trading at 3.8 cents each
After a mid-July production update, junior gold miner Beacon Minerals (BCN) has revealed a cashflow-positive June quarter in its latest financial report.
The company pulled in roughly $7.6 million in operating cash after costs for the June quarter, bumping its cash on hand to $15.36 million at the end of June.
Beacon said as at July 29, however, this cash balance has been boosted slightly to $16.9 million.
The quarterly production figures in today’s report are largely unchanged from the update earlier this month, with one key difference: Beacon actually produced 6711 ounces of gold from its Jaurdi project over the June quarter compared to the 6642 predicted in mid-July.
While the change itself is skinny, this actually puts Beacon’s production figures within its guidance from the March quarter, during which it said it expected to produce 6900 ounces of gold, give or take 200 ounces.
Nevertheless, it seems Beacon’s debt instruments are keeping the company’s share price subdued.
Beacon issued $18 million in debentures in October 2018, which it said it can start to repay from October 2020. While this is a year earlier than the due date, it still means the company is operating under the shadow of this debt for one more quarter.
Nevertheless, with reduced costs over the June quarter and the possibility of further cost reductions in the future, Beacon said it can continue to deliver as a low-cost gold producer.
Looking ahead, Beacon plans to take on some resource development drilling at the Panel 4 area of its Jaurdi project during the September quarter, as well as complete some sterilization drilling for an Integrated Waste Landform tailing storage facility at the project.
As far as the coronavirus pandemic is concerned, Beacon said it has so far suffered no COVID-19-related issues.
Beacon Minerals is up 2.7 per cent this afternoon, currently trading at 3.8 cents each . The company has a $108.84 million market cap.