In a Jan. 4 research note, CIBC analyst Bryce Adams reported that Leagold Mining Corp. (LMC:TSX.V; LMCNF:OTCQX) met its revised full-year 2018 production guidance of 295–305 Koz with actual production of 302.6 Koz.
Q4/18 production alone, of 93.8 Koz, was consistent with CIBC's estimate of 93.7 Koz.
Specifically, the Los Filos mine outperformed in Q4/18, producing 58.2 Koz versus CIBC's forecasted 55.3 Koz. Fazenda delivered 19 Koz and Pilar, 11.6 Koz, generally in line with CIBC's projections. RDM's production of 4.9 Koz, however, came in lower than the expected 7.4 Koz.
Looking forward, Leagold is expected to announce results of a technical study of a possible carbon-in-leach plant for the underground ore at Los Filos.
As for costs, Leagold reported the all-in sustaining cost (AISC) for full-year 2018 will be around $979 per ounce. Accordingly, CIBC revised its AISC estimates on the company, to $986 per ounce for full-year 2018 and $1,008 per ounce for Q4/18.
Having updated its model to reflect new Q4/18 production and cost figures from Leagold, CIBC now projects for Q4/18 an earnings per share of $0.00 and a cash flow per share of $0.06, both up by $0.05 per share.
CIBC has an Outperformer rating and a CA$3.50 per share price target on Leagold, whose current share price is CA$1.92.
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Disclosures from CIBC, Leagold Mining Corp., January 4, 2019
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Important Disclosure Footnotes for Leagold Mining Corporation (LMC)
· CIBC World Markets Inc. expects to receive or intends to seek compensation for investment banking services from Leagold Mining Corporation in the next 3 months.
