(Energy Analytics Institute, 28.Oct.2021) — Energy briefs including Hess Corp. confirming that production from its Liza Phase 2 development in Guyana is on track to startup in early 2022; Avino Silver & Gold Mines Ltd. entering into a share purchase agreement to indirectly acquire through the purchase of the shares of certain holding companies, the La Preciosa Property from Coeur Mining, Inc.; and more.
LATIN AMERICA AND THE CARIBBEAN
— Hess Corp. revealed an increase in the gross discovered recoverable resource est. located within Guyana’s offshore Stabroek Blk, offshore Guyana, to approx. 10bn boe, up from the previous est. of more than 9bn boe. The co. also revaled itd 19th, 20th and 21st significant discoveries in Stabroek at Whiptail, Pinktail and Cataback. Lastly, Hess confirmed the Liza Unity floating production, storage and offloading (FPSO) reached Stabroek on 24 Oct. and that production from its Liza Phase 2 development is on track to startup in early 2022.
— Avino Silver & Gold Mines Ltd. (TSX: ASM) (NYSE American: ASM) (FSE: GV6) entered into a share purchase agreement to indirectly acquire through the purchase of the shares of certain holding companies, the La Preciosa Property from Coeur Mining, Inc. (NYSE: CDE), the co. said 27 Oct. 2021 in an official stmt. La Preciosa is a development stage mineral property, hosting one of the largest undeveloped primary silver resources in Mexico, and is located adjacent to Avino’s existing ops at the Avino Property in Durango, Mexico.
— Orex Minerals Inc. (TSXV: REX)(OTCQB: ORMNF) revealed the JV co. Exploraciones y Desarrollos Mineros Coneto, SAPI de CV, 55% Fresnillo plc (LON: FRES) – 45% Orex, has rec’d results of the first independent mineral resource est. for the Coneto Gold-Silver Project in Durango, Mexico The mineral resource est. was prepared by Fresnillo and audited by SRK Consulting (Canada), Orex said 27 Oct. 2021 in an official stmt. The mineral resource est. is based on a database of 106 diamond drill holes, totaling 38,515m, drilled between 2010-17, considering gold and silver recovery results from the 2021 metallurgical testing program. Six separate zones on the property were included in the mineral resource est.
— Oceaneering International, Inc. (NYSE:OII) reported a net loss of $7.4mn, or $(0.07)/shr, on revenue of $467mn for the 3Q:21, the co. announced 27 Oct. 2021 in an official stmt. Adjusted net loss was $1.4mn, or $(0.01)/shr, reflecting the impact of $0.3mn of pre-tax adjustments associated w/ FX losses recognized during the qtr and $5.8mn of discrete tax adjustments, primarily due to changes in valuation allowances. During the prior qtr ended 30 Jun. 2021, Oceaneering reported net income of $6.2mn, or $0.06/shr, on revenue of $498mn. Adjusted net income was $10.4mn, or $0.10/shr, reflecting the impact of $3.2mn of pre-tax adjustments associated w/ a loss on the sale of an asset and FX losses recognized during the qtr and $1.6mn of discrete tax adjustments.
— GoGold Resources Inc. (TSX: GGD) (OTCQX: GLGDF) revealed results of 4 new drill holes from the El Favor East zone. Drill hole LRGF-21-086 intersected 0.9m of 1,494 g/t silver equivalent (AgEq), included within 20.0m of 150 g/t AgEq. Drill hole LRGF-21-089 extended the drilling of the newly discovered El Favor East zone by an additional 150m, the co. said 27 Oct. 2021 in an official stmt.
— Bristow Group Inc. (NYSE: VTOL) will release financial results for the second qtr fiscal yr 2022 after the mkt closes on 3 Nov. 2021. Bristow has scheduled a conf. call on 4 Nov. to begin at 10am EST. Investors may participate in the call by dialing 866-575-6539 (domestic) or +1.856.344.9299 (int’l) using the access code 4900724. A telephone replay will be available through 17 Nov. by dialing 1.888.203.1112 and utilizing the access code above. The accompanying investor presentation will be available on 4 Nov. on the investor section of Bristow’s website at www.bristowgroup.com.
— Agnico Eagle Mines Limited (NYSE: AEM) (TSX: AEM) reported quarterly net income of $114.5mn, or net income of $0.47/shr, for the 3Q:21. This result includes non-cash mark-to-mkt losses on warrants of $15.6mn ($0.06/shr), derivative losses on financial instruments of $10.7mn ($0.05/shr), foreign currency translation losses on deferred tax liabilities and non-recurring tax adjustments of $8.8mn ($0.04/shr), non-cash foreign currency translation gains of $6.5mn ($0.03/shr) and various other adjustment losses of $2.3mn ($0.01/shr), the co. announced 27 Oct. 2021 in an official stmt. Excluding these items would result in adjusted net income of $145.4mn or $0.60/shr for the 3Q:21. For the 3Q:20, the co. reported net income of $222.7mn or net income of $0.92/shr. Included in the 3Q:21 net income, and not adjusted above, is a non-cash stock option expense of $3.9mn ($0.02/shr).
— Kootenay Silver Inc. intends to make the previously announced spin-out transaction of the co. effective at 12:01am (Vancouver time) on 29 Oct. 2021 (the effective date). The co. has rec’d a final order from the Supreme Court of British Columbia dated 21 Sep. 2021, and shareholder approval pursuant to an annual and special meeting on 15 Sep. 2021, to implement the spin-out of 80% of the company interest in mineral exploration assets located in Canada to its shareholders by way of a share capital reorganization effected through a statutory plan of arrangement w/ Kootenay Resources Inc. (Spinco), a wholly-owned subsidiary of the co. Pursuant to the arrangement, the holders of common shares of the co. on 28 Oct. 2021 will receive one new common share of the co. (each, a Kootenay Silver Share) and 0.04 common shares of Spinco (each, a Spinco Share). The existing common shares of the co. are expected to be delisted from the TSX Venture Exchange (TSXV) at the close of business on 28 Oct. 2021. The Kootenay Silver Shares are expected to commence trading on the TSXV at the market open on 29 Oct. 2021. The CUSIP numbers of the Kootenay Silver Shares and the Spinco Shares will be 500583703 and 50058V107, respectively.
By Ian Silverman, Aaron Simonsky and Piero Stewart. © Energy Analytics Institute (EAI). All Rights Reserved.