Yukon-Nevada Gold Corp. (YNG.TO: Quote, YNGFF.PK) reported late Friday that it slipped to a loss in its second-quarter mainly on the absence of prior year's gain and higher costs.
For the quarter, the Canadian gold miner's net loss was $8.31 million or $0.01 per share, compared to net income of $22.92 million or $0.03 per share a year ago.
The latest quarter results included a $1.4 million loss in the fair value of warrants, while last year's results included a $36.6 million gain in the fair value of warrants recorded as derivative liabilities.
During the months of April and May, the company's milling operations experienced significant downtime in the fine crushing circuit due to repeated chain failures. In early July, the bucket elevator in fine crushing was replaced with two standard conveyors.
For the quarter, gold sales increased to $36.39 million from $28.26 million a year ago. The growth reflected the sale of 24,073 ounces of gold from Jerritt Canyon, compared to sales of 18,341 ounces in 2011. Average gold price per ounce also increased from last year.
During the quarter, the Jerritt Canyon Mill produced 25,249 payable ounces of gold from mining operations, compared with 19,407 ounces of gold produced in 2011.
Meanwhile, the company recorded a wider gross loss resulting from higher cost per ton driven primarily by low production due to the processing challenges.
Looking ahead, the company said it is focusing on ramping up production from the SSX-Steer mine in achieving the targeted production rate of 150,000 ounces of gold under steady state operations.
Longer term, the company is prioritizing negotiations for profitable third party ore processing opportunities. Revenues from these arrangements would offset production costs, resulting in a cash cost advantage.
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by RTT Staff Writer
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