With the Similco open-pit operation in British Columbia running smoothly and the price of copper reaching record highs, Princeton Mining (TSE) performed solidly in the second quarter.
The company earned $2 million for the period, or about 3 cents per share.
Earnings for the first six months of the year totaled just over $4 million on revenue of $27.1 million. Output amounted to 18.2 million lb. of copper, 11,075 oz. gold and 47,766 oz. silver.
Princeton’s average realized price for copper was US$1.20 per lb. during the 6-month period, and about US$1.18 for the second quarter.
The Similco mine is producing about 26,100 tons per day.
Mark Kucher, vice-president finance, says almost all the material milled during the first and second quarters was sourced from the low-grade stockpile while prestripping was carried out on the Ingerbelle Phase I pit.
By August, about 75% of all millfeed will come from the Ingerbelle pit, which should result in a significant rise in head grades.
The low-grade stockpile averages 0.244% copper, whereas the Ingerbelle Phase I pit reserve consists of 11.9 million tons grading 0.32% copper and 0.007 oz. gold, with an internal cutoff of 0.2% copper and a stripping ratio of 1.18-to-1.
Princeton did not release cash flow figures for the second quarter, although Kucher did say the earnings figure excluded expenses of just under $1 million.
During the first quarter, Princeton recorded a cash flow deficit of almost $2 million after changes in non-cash working capital. The first-quarter earnings of $2 million excluded capitalized expenses of $1.9 million.
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