The new Newmarket Gold

On  July12,2016 Newmarket Gold  released it's quarterly production results.Newmarket is the old Crocodile Gold but it has a few  new tweeks.Newmarket has all of it's assets in Australia (3 gold mines and a new one soon starting) but it's headquarters is in Vancouver, Canada;this is a Canadian gold company.
     Production data
 Newmarket had record quarterly production in this quarter;62,000 total ounces is 9% more than Q2 2015.First half production was at 119,250 ounces which includes 57,000 ounces for the first quarter.Newmarket is on track to exceed their annual guidance of  205,000 to 220,000 ounces.This blog predicts annual production of 245,000 to 255,000 ounces.This is chiefly because of the increases in the grade of ore in the Fosterville mine and a slightly higher gold recovery rate.
  Newmarket reports that they have a new gravity gold circuit increased recovery system.And they also report that mill grade increased by 27% over Q2 2015 at the Fosterville mine.This is important as that is now 61% of total production.There are now 8 drilling rigs at Fosterville;4 rigs at the Lower Phoenix structure and 4 at the Harrier south extension.Drilling is both above and below ground.There is no drilling now at the Phoenix structure which is where much of present production comes from.And Newmarket reports that there are 2 rigs at the new Aurora B resource in the Stawell mine.
  Fosterville had a quarterly record production of 37,250 ounces.The Cosmo mine produced 15,500 ounces which is an increase over 2015.But the Stawell mine production fell to 8500 ounces chiefly because the mill grade of their ore decreased.
   Newmarket has another property called Maud Creek which seems to be in the centre of Australia.They have completed their assessment study and it has a 5% NPV using a gold price of $1200 per ounce.Newmarket will commence a feasibility study in Q3 and may be ready to drill in early 2017.They probably would use the Cosmo mine mill to process their ore at first.
           New Guidance
      Investors should be happy with this quarterly production report.The full financial report will follow.But Newmarket does say that it has a cash balance of $70 million which is up 34% from Q1 2016.It also shows that now it has no debt.This ensures that the Maud Creek mine will be ready to start production with a successful feasibilty study in Q3.Newmarket has talked in other quarterly reports about other properties they have including a Silver Tip mine.And now the price of gold is inching forwards;it may stay in the $1325 to $1375 per ounce range for the rest of 2016.This price scenario will allow Newmarket to make a small acquisition and take on a little bit of new debt.Although it is clear that their main focus now is on assessing the total size of the Fosterville resource. 
     If this blog is right about their new annual guidance being 245,000 to 255,000 ounces and the gold price staying in it's present range then look at the share price being in the $4.50 to $5.00 range by December, 2016.          use Workathon analysis of Cdn. resource stocks