More attributable output, lower net income
Hemlo Mining reported November 9 that its Ontario gold operation produced 25,652 attributable ounces in the quarter ended September 30, up about 2% from 25,188 in the second quarter. Q3 revenue was US$135.5 million and net income US$3.5 million, down US$27 million from the previous quarter.
The company attributes the profit decline partly to fair-value losses on contingent consideration and gold derivatives, alongside lower realized gold prices. These are quarter-to-quarter comparisons, rather than a claim that production fell year over year.
Keep the production definitions separate
Total gold output was 29,617 ounces. Hemlo’s attributable measure counts all Williams gold and half the Interlake gold; it is not the same total. The company’s reported figures are in US dollars unless otherwise stated.
Cash flow includes a timing effect
Operating cash flow reached US$54.6 million. Hemlo says the increase from Q2 was mainly driven by timing, including US$14.8 million collected for gold sold near the end of the previous quarter. Quarter-end cash was US$144.8 million.
The linked release contains the financial tables and non-IFRS reconciliations. Its results call is listed for November 10 at 11:00 a.m. Eastern Time; that planned discussion is separate from the November 9 announcement and the September reporting period.
