Gold Bar production accelerated during Q4 and the month of December, making new records for the quarter and the month, through the addition of mining crews and the completion of the heap leach pad expansion. At Fox, production continued steady above 10,000 GEOs. San José production continued to strengthen throughout the year, past the operational challenges of the first quarter.
Chart 1: 2023 Quarterly Production - Gold Bar, Fox, San José and Consolidated (GEOs)
In 2023, Gold Bar produced 43,700 gold ounces, within guidance range, Fox produced 44,450 gold ounces, also within guidance range, and San José produced 65,650 GEOs, slightly below guidance range (see Table 1).
Table 1: Consolidated Production Summary | ||||
Q4 2022 | Q4 2023(3) | Full Year 2023(3) | 2023 Guidance | |
Consolidated Production | ||||
Gold (oz) | 28,970 | 42,400 | 128,650 | 123,000-139,000 |
Silver (oz) | 702,000 | 635,650 | 2,166,850 | 2.3M-2.6M |
GEOs(1) | 37,280 | 49,850 | 154,600 | 150,000-170,000 |
GEOs | 7,940 | 19,800 | 43,700 | 42,000-48,000 |
GEOs | 9,870 | 10,200 | 44,450 | 42,000-48,000 |
San José Mine, | ||||
Gold Production (oz) | 11,170 | 11,700 | 39,700 | 39,000-43,000 |
Silver Production (oz) | 700,850 | 635,650 | 2,166,850 | 2.3M-2.6M |
GEOs | 19,420 | 19,150 | 65,650 | 66,000-74,000 |
Our consolidated production is recovering after experiencing a challenging period from 2020. Looking ahead, while we forecast lower production in 2024, the historic production trend remains positive.
Chart 2: Historic Consolidated Annual Production (Thousand GEOs)
2024 Production and Cost Guidance
For 2024, we expect to produce in the range of 130,000 to 145,000 GEOs attributable to MUX from all operations (see Table 2). The reduction compared to 2024 is primarily driven by lower output from our Fox operation and from San José, which is operated by our partner Hochschild Mining. We are currently evaluating potential areas for enhancing production and profitability, and we will update our guidance accordingly once any further improvements are implemented.
Table 3: 2024 Production & Costs per GEO Guidance | |
2024 Guidance | |
100% Owned Mines (Gold Bar and Fox) | |
GEOs | 80,000-85,000 |
Cash Costs/GEO | |
AISC/GEO | |
GEOs | 40,000-43,000 |
Cash Costs/GEO | |
AISC/GEO | |
GEOs | 40,000-42,000 |
Cash Costs/GEO | |
AISC/GEO | |
49% Owned San José Mine | |
GEOs | 50,000-60,000 |
Cash Costs/GEO | |
AISC/GEO | |
At Fox in 2024, we will be starting the development of underground ramp access to the Stock orebodies, particularly Stock West, which will become the primary source of feed following the completion of mining the Froome deposit in 2026. This capital investment is partially funded by the
At Gold Bar in 2024, the first half of the year is expected to deliver higher production relative to the second half, due to a scheduled waste stripping phase in the Pick pit, in preparation for the 2025 mining program. The mining sequence continues to be optimized.
Twenty drill rigs are currently on site at Los Azules and over 36,000 meters (118,000 ft) of drilling have been completed so far this season, to advance all areas that contribute to the upcoming Feasibility Study (FS), which is expected to be published in Q1 2025.
At the
On the ground, we've made tangible progress with the drilling program, construction of our winter camp and improvements to the exploration road facilitating year-round operations. We're also on track with environmental permitting, reflecting our commitment to responsible development.
Financially, we've been diligent in protecting our treasury. The majority of our funds have been invested in depository receipts of foreign and major Argentinean corporations, to shield us from devaluation. This strategic move ensures that the Los Azules project's financial backbone stays robust in supporting our project development.
“We are adapting to a changing environment in
Notes:
(1) 'Gold Equivalent Ounces' are calculated based on a gold-to-silver price ratio of 84:1 for Q1 2023, 83:1 for Q2, 2023, 82:1 for Q3 2023, 85:1 for Q4 2023. 2023 production guidance is calculated based on an 85:1 gold-to-silver price ratio.
(2) The San José Mine is 49% owned by
(3) El
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Chart 1 - 2023 Quarterly Production - Gold Bar, Fox, San José and Consolidated (GEOs)
Chart 1 - 2023 Quarterly Production - Gold Bar, Fox, San José and Consolidated (GEOs)
Chart 2 - Historic Consolidated Annual Production (Thousand GEOs)
Chart 2 - Historic Consolidated Annual Production (Thousand GEOs)
2024 GlobeNewswire, Inc., source