VANCOUVER (miningweekly.com) – Canadian mining development and royalty company AuRico Metals has reported record royalty revenue of $2.8-million, an increase of 39% year-on-year, for the second quarter ended June.
The company reported on Wednesday that revenue for the quarter was boosted by record gold output of 77 069 oz from the Fosterville mine, in Australia, and 47 300 oz from the Young-Davidson mine, in Ontario.
The company advised that future royalty revenue would be positively impacted on by the significant 110% increase in gold ounces within mineral reserves at Kirkland Lake Gold’s Fosterville mine, prompting it to revise upwards its full-year royalty revenues – for the second time in 2017 – to a range of between $10.5-million and $11-million.
AuRico reported a record cash balance of $21.2-million at June 30.
AuRico is focused on delivering near-term catalysts, including publishing the results of the 2017 Kemess East drill programme in the fourth quarter, as well as an updated Kemess East resource estimate in the first quarter of 2018.
The company is also busy with preparations to submit permitting applications and detailed engineering for the Kemess Underground project, ahead of a potential decision to start early construction activities during the first half of 2018.
It is also advancing an integrated Kemess Underground and Kemess East feasibility study, with completion pencilled in for mid-2018.
Meanwhile, management is evaluating funding alternatives for the potential development of the $524-million Kemess Underground project.