Harte Gold announced its results for the three months ended September 30, 2021.
The Company’s unaudited financial results for three months ended September 30, 2021 (“Q3 2021”), together with its Management’s Discussion and Analysis (“MD&A”) for the corresponding period, can be accessed under the Company’s profile on www.sedar.com and on the Company’s website at www.hartegold.com. All currency references in this press release are in Canadian dollars except as otherwise indicated.
Q3 2021 Highlights:
- Liquidity position: Cash on hand at September 30, 2021 was $11.4 million ($11.9 million at June 30, 2021). Based on the Company’s updated outlook and guidance for 2021, the Company will require additional funding prior to the end of 2021 to continue operating and to conclude the Strategic Review Process. The Company’s liquidity position is further discussed below under “Liquidity and Capital Resources”.
- Gold production: Total production of 15,260 oz Au for Q3 2021 compared to 11,283 oz Au in Q2 2021 and 6,218 oz Au in Q3 2020. Production was positively impacted by increased throughput and grade. Cumulative gold production to-date is 38,319 ounces for 2021.
- Mine capital development: Averaged 10.4 metres per day in Q3 2021 compared to 10.0 metres per day in Q2 2021 and 9.2 metres per day in Q3 2020. Development to the Middle Zone was temporarily suspended in Q2 2021 to manage cash and liquidity and support the Strategic Review Process.
- Ore tonnes processed: Average throughput rate of 771 tonnes per day (tpd) for Q3 2021 compared to 674 tpd in Q2 2021 and 649 tpd in Q3 2020. Increased throughput was a function of improved mine production resulting in more tonnes delivered to the mill.
- Head Grade: Increased to 7.1 g/t Au, compared to 6.1 g/t Au in Q2 2021 and 5.7 g/t Au in Q3 2020, due to higher grade areas of ore body being mined.
- Continued quarterly improvements and the Strategic Review Process:
- Q3 2021 proved to be an operationally successful quarter and a notable improvement from Q2 2021, in part due to ongoing operational improvements and focused capital and sill development.
- However, the short-term cash preservation actions continue, including the curtailment of various sustaining and expansion capital including development of the Middle Zone, which are anticipated to negatively impact production in Q4 2021.
- As the Company outlined in a press release dated May 13, 2021, there are critical areas of the operation that must be addressed in order to see a sustainable, consistent increase in production.
- These four areas include bolstering the mine workforce, accelerating infill drilling, accelerating mine capital development, and reinforcing the underground mobile equipment.
- These initiatives require additional capital. In the absence of securing the financial liquidity to address these initiatives, the Company continues to expect that future production will be negatively impacted.
- Revenues: $32.2 million in revenue from 14,669 oz Au sold for Q3 2021 compared with $26.1 million in revenue from 11,855 oz Au in Q2 2021 and $12.2 million in revenue from 4,882 oz Au sold in Q3 2020.
- Net loss: $3.1 million net loss in Q3 2021 compared with $0.9 million net loss in Q2 2021 and $11.8 million net loss in Q3 2020.
- Mine Operating Cash Flow*: $13.7 million in Q3 2021 compared with $9.3 million in Q2 2021 and $4.7 million in Q3 2020.
- EBITDA*: $5.7 million for Q3 2021 compared with $3.1 million for Q2 2021 and negative $0.7 million in Q3 2020.
- Cash Cost*: US$1,014/oz in Q3 2021 compared with US$1,159/oz in Q2 2021 and US$1,177/oz in Q3 2020.
- AISC*: US$1,798/oz in Q3 2021 compared with US$2,033/oz in Q2 2021 and US$2,197/oz in Q3 2020.
- Mine Capital development: $5.5 million invested in Q3 2021.
* Mine Operating Cash Flow, Average Realized Gold Price, EBITDA, Cash Cost and AISC are non-IFRS measures, refer to the definitions of non-IFRS measures in the Company’s MD&A for a reconciliation
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