(MENAFN- ProactiveInvestors) International gold miner () posted fourth quarter earnings that were impacted by lower payable metals and higher than expected costs with 2015 guidance also coming in below forecasts.
The company reported fourth quarter adjusted earnings of 12 cents per share below Dundee Capital Markets' estimate of 20 cents and above consensus estimates of 8 cents.
In a research note released today Dundee Capital analyst Josh Wolfson said earnings were impacted by lower payable metals at 10 to 13 percent below the broker's estimate at total cash costs of $410 an ounce 43 percent above his forecast.
While copper recoveries returned to targeted levels at Chelopech in Bulgaria gold recoveries continue to be below expectations. At Kapan in Armenia Dundee Capital said ramp up to full throughput has been delayed again now expected in late 2015 compared to the prior third quarter forecast.
issued its 2015 guidance for gold and copper concentrate production of 130 to 150000 ounces and 42 to 46 million pounds respectively. Forecast gold production is 12 percent below Dundee Capital's estimate while copper output is 6 percent short.
"At Tsumeb [in Namibia] guidance of 190-220kt processed at $320-400/t is in line with forecasts. 2015 capex guidance of $103-130MM is materially higher than our $85MM estimate due to elevated project capex ($70-90MM vs. $44MM est.)" wrote Wolfson.
The analyst noted however that a strong close to the year enabled to improve its net debt position to $124 million where $14 million of inflows were contributed by operations and $9 million by working capital changes.
Dundee Capital said major variances attributed to the weaker than expected financial results were lower gross operating income partially offset by lower general administrative expenses as well as higher realized hedge gains and lower taxes.
At year end had cash of $34 million $158 million in debt and $165 million in available credit.
Shares of are not rated by Dundee Capital. The stock climbed 2.9 percent to C$3.25 in Toronto on Friday.
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