- Precious metals miner Dacian Gold (DCN) has announced a preliminary operating and corporate update for the December quarter
- The report revealed quarterly production of 27,162 ounces of gold for the quarter, meaning 59,961 ounces have been produced for the financial year to date
- The Mt Marven and Heffernan open pits were the prominent source of the gold
- Dacian retained cash and gold-on-hand, totalling $37.9 million, while paying down $15.7 million in debt
- The company also confirmed the merger deal with NTM Gold (NTM) is proceeding as planned
- DCN shares are trading up 0.43 per cent at 46.2 cents
Precious metals miner Dacian Gold (DCN) has updated the market, releasing a preliminary operating and corporate update for the December quarter.
The company is well on the way to meeting its full-year guidance of 110,000 to 120,000 ounces, with total gold production sitting at 59,961 ounces so far. This includes 27,162 ounces for the three months to December 31.
Dacian’s Heffernans and Mt Marven open pits at the Mount Morgan project in Queensland were the predominant source for the gold. DCN also noted stripping activities continue at its Doublejay open pit as it prepares that area for future production.
The balance sheet
DCN reported total cash and gold-on-hand at December 31 was $37.9 million, with the company repaying $15.7 million in debt during the quarter. Total debt now stands at $23.4 million.
Dacian Managing Director Leigh Junk says, “this continues Dacian’s strong turnaround and positions us well to meet our annual targets during FY21.”
“The Mt Morgans operating result for the quarter has facilitated an additional performance-based debt repayment reducing debt to $23.4 million, which is now forecast to be extinguished from operating cashflows during 2021.”
Merger with NTM proceeding
In November last year, Dacian announced an all-scrip merger with fellow ASX-Lister NTM Gold (NTM). The company confirmed today the deal is progressing as planned, with an anticipated closing date of mid-March this year.
DCN shares are trading up 0.43 per cent at 46.2 cents at 10:25 am AEDT