It was Superior's four consecutive quarter of improving production at Plutonic.

 

Second quarter production landed at 19,356 ounces, a 28% boost over the same period in 2020, with the stoping grade landing at 3.3 grams per tonne, putting Superior on track to report an average grade of more than 3g/t for the year.

 

The company also increased its stoping material mined from 137,200t to 156,000t, while development material mined increased 56,000t, with an improved grade of 1.6g/t.

 

Mill recovery also improved 2% to 88% as a result of higher head grades due to the contribution of Plutonic East open pit ore, one of six planned pit developments.

 

The company exited the quarter with US$17.4 million in cash, slightly lower than the March quarter, but expects to start rebuilding its treasury, with $10 million in extra cashflow being added each year now the Auramet gold loan has been closed out.

 

The company's newly-appointed CEO, who recently ran the massive Lihir gold mine in Papua New Guinea for Newcrest Mining, Chris Jordaan, said changes embedded in the business last year continued to deliver rewards.

 

"The higher-grade open pit feed in conjunction with opening new high-grade underground mining fronts is expected to result in a continued improvement in our grade profile moving forward," he said.

 

Together with underground exploration success, particularly in the high-grade Baltic Gap area, he expects to see a significant improvement in cashflow over the second half of the year, and into 2022. 

 

Reserves at Plutonic are about 1.9Moz, within resources of 3Moz.

 

BMO Capital Marksts analyst Brian Quast had been predicting production of 17,000oz, and with the production beat he maintains an outperform recommendation on the stock with a price target of C$1.50.

 

Superior shares were last traded at 70c on the TSXV, valuing it at $85 million, although the stock is still trading about half its mid-2020 peak