Metanor Resources (MTO.V) has announced it has produced 5,202 ounces of gold in May, which is a remarkable result and better than we anticipated. The higher production was caused by a higher average grade which was fed to the mill, as the average grade during the month of May was a very respectable 7.81 g/t. This is because the company has started to process ore from level 14 and certain parts of the mine have a higher gold grade than other parts. Additionally, Metanor said a large contributor to the increased grade was the underground dilution control.
We are very happy with the production results in May, and it looks like the company will continue to generate positive operating cash flow in the second quarter of this year. The free cash flow in Q1 was negative due to the relatively high exploration expenses, but we hope to see Metanor being overall free cash flow positive soon, as we expect the exploration expenses to decrease in the near future.
> Click here to read the press release
Disclosure: The author holds a long position in Metanor Resources. Metanor is a sponsor of the website. Please see our disclaimer for current positions.
