Premier Gold: Solid Quarter From South Arturo Not Enough To Offset COVID-19 Headwinds

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About: Premier Gold Mines Limited (PIRGF)
by: Taylor Dart
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Taylor Dart
Long/Short Equity, Momentum, gold & precious metals
Summary

Premier Gold released its Q2 results on Tuesday with quarterly production significantly lower due to government-mandated shutdowns in Mexico affecting the Mercedes Mine.

The company reported gold production of 4,760 ounces, down over 70% year-over-year as the only mine contributing to production in the quarter was South Arturo.

Fortunately, the company is finally making changes at its high-cost Mercedes Mine, with a focus on margins going forward by mining solely Diluvio and Lupita.

Based on Premier's relatively high costs, continued dilution, and relatively small production profile, I continue to see better opportunities elsewhere in the sector.

We're now more than one-third of the way through the Q2 Earnings Season for the Gold Miners (GDX), and the most recent name to report is Premier Gold (OTCPK:PIRGF). Unfortunately, while