07:57 AM EDT, 08/05/2020 (MT Newswires) -- Premier Gold Mines Ltd. (PG.TO) may lose some of yesterday's 3.7% gain and fall from 52-week highs after saying overnight Tuesday that its second-quarter net loss swelled to US$14.1 million, or a loss of US$0.06 per share, from US$10.1 million, or a loss of US$0.05 per share, recorded a year ago.

Total revenue fell to US$14.8 million from US$23.0 million last year following the suspension of the Mercedes mine in Mexico from March 30 to late May due to the COVID-19 pandemic.

EBITDA loss also widened to US$8.6 million from US$3.7 million while capital expenditure sank to US$1.8 million from US$12.4 million.

Gold production slumped to 4,765 ounces from 16,450 ounces while gold sales declined to 9,382 ounces from 17,358 ounces. Silver production plummeted to 567 ounces from 51,792 ounces and silver sales sagged to 14,747 ounces from 56,484 ounces.

Premier Gold also said it is evaluating asset reorganization options that could include a spin-out to its shareholders of its U.S. subsidiary holding its Nevada assets.

The spin-out, which is expected to maximize the value of its property portfolio, would be a stand-alone, U.S.-domiciled, publicly listed gold company that will include the South Arturo and McCoy-Cove properties. Premier Gold is also considering other acquisition opportunities through its U.S. subsidiary.

"We are exploring the attractiveness of creating two companies that would benefit from streamlined property portfolios and a simplified domestic investment thesis," said Ewan Downie, President and CEO of Premier Gold. "Premier has assembled a high-quality portfolio of assets spanning exploration to mining operations and we believe the market is not fully valuing the sum of the parts."

Price: 2.8300, Change: +0.1000, Percent Change: +3.66