Goldsource Mines Reports Q4 Results & Updates
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Goldsource Mines Reports Q4 Results & Updates



By: Tomas Ronolski - AllPennyStocks.com News

Monday, January 09, 2017
After an impressive performance in 2016, the gold mining sector is looking to score similarly good scores this year as well. Various industry sources have predicted strong upside for gold prices in 2017. Goldsource Mines Inc. (TSX-Venture:GXS) is a prominent gold mining company which is likely to benefit from these positive trends as the year progresses.

The company announced its fourth quarter results this morning as it showed substantial improvement in its operations. Goldsource Mines reported a 13% increase in processing volume for the fourth quarter of this year as it announced that it processed 39,513 tons. Its average throughput of 527 tonnes per day (tpd) also showed a 13% increase on a year-over-year basis.


Goldsource Mines achieved this number despite facing issues such as faulty equipment and delays in equipment delivery. The firm reported a 45% increase in gold production to touch the 253 ounce figure. The biggest impetus for the company came from its increase in the gold sold. Goldsource Mines reported its sales for the quarter at 353.3 gold ounces, an increase of 425% on a year-over-year basis.

The company also provided an update for its operations as well as its plans for the coming year. Late last year, Goldsource Mines changed its process to bypass the recirculation of plus 2mm oversize material. This helped in decreasing plant maintenance requirements due to reduced downtime and improved throughput. This step will help the company in achieving better efficiency in the new year.

Goldsource Mines also undertook various other steps to reduce its costs. The company let go of half of its workforce at Eagle Mountain as the main plant needed to be shut-down in December. In 2017, the company plans to install a Krebs cyclone in the Main Plant to de-slime the scrubbed material prior to gravity recovery. This will help the Company in improving the recovery of fine gold.

Lastly, Goldsource Mines plans to complete a low cost drilling operation and start a low cost Secondary gravity operation. Coupled with the company’s strong performance in the fourth quarter, these initiatives are expected to yield good results for the company as well as the investors going forward.

Shares of GXS have lost over 6% of its value in the past year and are way below their 52 week high of $0.57, which it achieved in mid-2016. With that said, it looks as though a base around $0.20 is trying to be built offering a potential downside cushion.

With the various initiatives outlined above by Goldsource Mines, and improved sentiment towards mining related stocks, having GXS on a watchlist may prove to be a prudent move.

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