Metanor Resources (MTO.V) has announced its financial and operational results for Q1 FY 2015 (which is Q3 in calendar year 2014). The total gold production was approximately 11,600 ounces of gold which is slightly below our expectations but isn’t alarming at all. The all-in cost of C$1188/oz might sound high, but is actually pretty decent thanks to the weak Canadian Dollar. At the current USD/CAD exchange rate of 1.14, the AISC was just US$1040/oz which isn’t bad.
The company’s underground development and exploration activities are still ongoing as in excess of 1,600 meters underground development and more than 11,000 meters of exploration drilling have been completed in the quarter. The main purpose of the exploration drilling is to get a better idea of the gold grades and the mineralized structures, as well as aiming to increase the overall resource base at Bachelor Lake. Looking at the balance sheet, we’re actually pretty happy with what we see. The company was free cash flow positive once again (excluding exploration expenses and working capital changes). The working capital deficit was C$8.65M but this is the result of the convertible debentures being added to the short-term liabilities.
> Click here to read Metanor’s 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.
