Anaconda Mining proves Joey Smallwood right with increased gold revenues
Anaconda Mining Inc (TSX: ANX) announced significant increase in revenues from 3,956 ounces of gold totalling $5,785,801 at an average sales price of $1,462 per ounce. The first quarter of fiscal 2016 sales revenue was approximately 5% higher than the first quarter of fiscal 2015 when the Company sold 3,933 ounces at an average gold sales price of $1,401 per ounce and generated $5,511,612 in revenue (click here for financial details).
The positive results are owed to increased mill efficiency, throughput and recovery through technological improvement.
The Pointe Rousse project and supporting mill have been in operation since 2012 and has grown its output to 15,000 ounces annually. Since 2012 it has generated $27M in project-level operating cash flow (EBITDA), which permitted Anaconda to pay off $9 million of debt, which according to its corporation makes it debt free.
Anaconda’s story of systematic growth and innovation reminds me of Joey Smallwood determination and perseverance.
In the historical novel The Colony Of Unrequited Dreams Wayne Johnson explains how Joey Smallwood became the most significant force in Newfoundland’s history.
Joey Smallwood, undoubtedly the most significant political figure in the history of Newfoundland, is most certainly dancing in his grave.
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In The Colony of Unrequited Dreams, a Canadian bestseller, Wayne Johnson emphasized Joey Smallwood, the true-life controversial political figure who ushered Newfoundland through confederation with Canada and became its first premier.
As premier, Smallwood vigorously promoted economic development and vigorously promoted shifting the Newfoundland economy from fishing toward industrialization. His most favourable results were in hydroelectricity, iron mining and paper mills. I am sure he contemplated gold mining and so, Smallwood would have loved Anaconda’s Pointe Rousse.
I bet that if Joey Smallwood were still alive he would be canvassing Bay Street investors to invest in Anaconda. He would emphasize the industriousness of the Newfoundland workforce and the province’s relentless pursuit toward economic stability, which was his greatest ambition. He would brag about Anaconda’s million ounces of gold potential at Pointe Rousse.
In Smallwood’s lifetime (1900-1991) Newfoundland went from a poor province to a significant economic force. Alone, the offshore oil industry accounted for 35 per cent of the provincial GDP in 2007, up from 13 per cent in 1999 and 24.3 per cent in 2004. According to Statistics Canada, Newfoundland and Labrador experienced greater economic growth in 2007 than any other Canadian province. Smallwood would have loved gold mining so much that I am positive he would spend days at Pointe Rousse.
Dr. Luc C. Duchesne is a Speaker and Author with a PhD in Biochemistry. With three decades of scientific and business experience, he has published ... <Read more about Dr. Luc Duchesne>