Allied Nevada Gold says Q1 production in line with estimates, sales higher
Allied Nevada Gold (TSE:ANV)(AMEX:ANV) said Friday that first quarter production at its Hycroft mine in Nevada was in line with estimates, while sales during the period came in slightly better than expected.
The company released preliminary first quarter results, with full results expected on May 5.
The Hycroft mine produced 20,718 ounces of gold and 61, 751 ounces of silver in the first quarter. The company said it expects production to strengthen throughout the year, as the impact of Allied Nevada's accelerated heap-leach mining plan will begin to take effect.
Expansion of the Merrill-Crowe plant to increase processing capacity from 3,500 gpm to 5,000 gpm began in the first quarter, while ground preparation to begin mining in a new area of Hycroft began in January.
However, the company said that the earthquake in Japan last month has delayed the delivery of a large capacity shovel that was originally expected to be in operation by the second quarter. Allied Nevada now anticipates the shovel will not be operating until the third quarter, resulting in a revision to its full year production guidance to between 115,000 to 125,000 ounces of gold.
During the first quarter, the precious metals producer sold 21,241 ounces of gold and 59,383 ounces of silver.
Allied Nevada shares were up more than 2.4% on Friday to trade at $40.26 as of 12:31pm EST.
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