UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 15, 2014
 
 
ALLIED NEVADA GOLD CORP.
(Exact name of Registrant as Specified in Its Charter)
 
 
 
 
 
 
 
 
Delaware
 
1-33119
 
20-5597115
(State or Other Jurisdiction
of Incorporation)
 
(Commission
File Number)
 
(IRS Employer
Identification No.)
 
 
 
 
9790 Gateway Drive, Suite 200
Reno, Nevada
 
89521
(Address of principal executive offices)
 
(Zip Code)
(775) 358-4455
(Registrant’s Telephone Number, Including Area Code)
n/a
(Former Name or Former Address, if Changed Since Last Report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))




Item 2.02
Results of Operations and Financial Condition.
On October 15, 2014, Allied Nevada Gold Corp. (the “Company”) issued a press release reporting the Company’s preliminary third quarter 2014 sales and production results. A copy of the press release is attached as Exhibit 99.1 hereto and is incorporated herein by reference.
In accordance with General Instruction B.2 of Form 8-K, the information in this Item 2.02 including the press release attached as Exhibit 99.1 hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 7.01
Regulation FD Disclosure.
On October 15, 2014, the Company issued a press release providing a summary of the feasibility study results for the Hycroft mill expansion. A copy of the press release is attached as Exhibit 99.2 and incorporated herein by reference.
In accordance with General Instruction B.2 of Form 8-K, the information in the press release attached as Exhibit 99.2 hereto shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01
Financial Statements and Exhibits.
(d) Exhibits
 
 
 
 
 
Exhibit
No.
  
Exhibit
 
 
 
 
 
99.1
  
Press release of Allied Nevada Gold Corp. dated October 15, 2014.
99.2
  
Press release of Allied Nevada Gold Corp. dated October 15, 2014.




SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 
 
 
 
 
Dated: October 15, 2014
 
 
 
Allied Nevada Gold Corp.
 
 
 
 
 
 
 
 
By:
 
/s/ Stephen M. Jones
 
 
 
 
 
 
Stephen M. Jones
 
 
 
 
 
 
Executive Vice President and Chief Financial Officer




EXHIBIT INDEX
 
 
 
 
 
Exhibit
No.
  
Exhibit
 
 
 
 
 
99.1
  
Press release of Allied Nevada Gold Corp. dated October 15, 2014.
99.2
  
Press release of Allied Nevada Gold Corp. dated October 15, 2014.





Exhibit 99.1 Press Release

Allied Nevada Announces Preliminary Q3 Production and Sales

October 15, 2014 | Reno, Nevada - Allied Nevada Gold Corp. (“Allied Nevada” or the “Company”) (TSX: ANV; NYSE-MKT: ANV) reports that third quarter 2014 production and sales targets were achieved at its wholly owned Hycroft mine in Nevada. Preliminary third quarter and year to date 2014 production and sales, as compared with production and sales in the comparative 2013 periods, were as follows:
 
 
 
Three months ended
September 30,
 
Nine months ended
September 30,
 
 
 
2014
 
2013
 
2014
 
2013
 
 
 
 
 
 
 
 
 
 
Ounces produced
Gold
 
49,630
 
52,198
 
166,608
 
129,412
 
Silver
 
525,942
 
184,070
 
1,419,599
 
504,911
 
 
 
 
 
 
 
 
 
 
Ounces sold
Gold
 
52,176
 
52,713
 
168,696
 
121,481
 
Silver
 
535,407
 
184,082
 
1,416,473
 
505,151
The operation continues to benefit from increased mining capacity and process improvements that have been implemented to the heap leach operation over the last few years. Gold and silver sales were 39% and 180% higher in the first nine months of 2014 when compared with the same period in 2013. The largest contributor to the improvements, specifically silver production and sales, was the increased processing capacity of the new Merrill-Crowe plant which processes the majority of our pregnant solution. In 2013, about 45% of our sales was from carbon columns, which do not extract silver as efficiently as the Merrill-Crowe process, compared to 14% being sold from carbon in the third quarter of 2014. Silver production and sales in the third quarter of 2014 were more than those during the first nine months of 2013.
As anticipated, gold production in the third quarter of 2014 was lower than either of the first two quarters of 2014 as we mined through lower grade ore and waste to open up new mining areas for the 2015 mine plan. We are currently mining in higher grade material and expect to average mined grades of 0.017 ounces per ton for the fourth quarter. We anticipate metal sales for 2014 to be between 220,000 - 230,000 ounces of gold and 1.9 - 2.0 million ounces of silver.
We expect to issue third quarter 2014 financial results on November 3, 2014, after close of market. We plan on holding a conference call and webcast on November 4, 2014, at 8:00 am PT (11:00 am ET) to discuss these results followed by a question and answer session. A link to the listen-only webcast link can be accessed at www.alliednevada.com. To participate in the conference call, please dial:    
Toll-Free in North America: 1-866-233-4585  
International: 1-416-640-5946
 
 
 
 
 
For further information on Allied Nevada, please contact:
Randy Buffington
 
Tracey Thom
President and CEO
 
Vice President, Investor Relations
(775) 358-4455
 
(775) 789-0119
or visit the Allied Nevada website at www.alliednevada.com.

Exhibit 99.1 Press Release

Cautionary Statement Regarding Forward Looking Information
This press release contains forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, Section 21E of the U.S. Securities Exchange Act of 1934, as amended (and the equivalent under Canadian securities laws) and the Private Securities Litigation Reform Act or in releases made by the U.S. Securities and Exchange Commission (the “SEC”), as all may be amended from time to time. All statements, other than statements of historical fact, included herein or incorporated by reference, that address activities, events or developments that we expect or anticipate will or may occur in the future, are forward-looking statements. The words “estimate”, “plan”, “anticipate”, “expect”, “intend”, “believe”, “project”, “target”, “budget”, “may”, "can", “will”, “would”, “could”, "should", “seeks”, or “scheduled to”, or other similar words, or negatives of these terms or other variations of these terms or comparable language or any discussion of strategy or intentions identify forward-looking statements. Such forward-looking statements include, without limitation, statements regarding the ability to achieve increased recoveries and the processing capacity of the Merrill-Crowe plant; the potential for confirming, upgrading and expanding gold and silver mineralized material at Hycroft; reserve and resource estimates and the timing of the release of updated estimates; estimates of gold and silver grades; anticipated costs, anticipated sales, project economics, the realization of expansion and construction activities and the timing thereof; production estimates and other statements that are not historical facts. Forward-looking statements address activities, events or developments that Allied Nevada expects or anticipates will or may occur in the future, and are based on current expectations and assumptions. Although Allied Nevada management believes that its expectations are based on reasonable assumptions, it can give no assurance that these expectations will prove correct. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, among others, risks that Allied Nevada’s exploration and property advancement efforts will not be successful; risks relating to fluctuations in the price of gold and silver; the inherently hazardous nature of mining-related activities; uncertainties concerning reserve and resource estimates; uncertainties relating to obtaining approvals and permits from governmental regulatory authorities; and availability and timing of capital for financing the Company’s exploration and development activities, including the uncertainty of being able to raise capital on favorable terms or at all; as well as those factors discussed in Allied Nevada’s filings with the SEC including Allied Nevada’s latest Annual Report on Form 10-K and its other SEC filings (and Canadian filings) including, without limitation, its latest Quarterly Report on Form 10-Q (which may be secured from us, either directly or from our website at www.alliednevada.com or at the SEC website www.sec.gov). The Company does not intend to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities laws.


 
Preliminary Q3 2014 Production and Sales
2


Exhibit 99.2 Press Release

Allied Nevada Announces Hycroft Mill Expansion Feasibility Results Highlighted by Improved Projected Returns

October 15, 2014 | Reno, Nevada - Allied Nevada Gold Corp. (“Allied Nevada”, “us”, “we”, “our” or the “Company”) (TSX: ANV; NYSE MKT: ANV) is pleased to provide a summary of the Hycroft mill expansion feasibility study results, completed by M3 Engineering and Technology (“M3”) in association with the Company. M3 developed the process flow sheet, capital cost estimate, operating cost estimate and financial model, while Allied Nevada developed the heap leach metrics, taxes, mineral reserves and mine plan. The feasibility study assumptions are largely the same as in the prefeasibility study issued in May, 2014, and continue to assume a two-phase construction plan for the mill expansion.
A summary of the significant changes from prefeasibility to feasibility are highlighted below. Consistent with the prefeasibility study, the base case metal price assumptions of $1,300 per ounce gold and $21.67 per ounce silver have been utilized in the feasibility study. The feasibility is presented on a January 1, 2015, go-forward basis and the comparative prefeasibility results have been adjusted to reflect the same start time. We intend to file a National Instrument 43-101 Technical Report within the 45-day regulatory timeframe.
Highlights of Significant Changes to the Feasibility:
 
 
Feasibility -
October 2014
Prefeasibility (adjusted1) -
May 2014
Change
LOM ounces sold - gold
000s Ozs Au
7,437

7,122

↑     4%
LOM ounces sold - silver
000s Ozs Ag
340,111

326,419

↑     4%
 
 
 
 
 
Initial capital cost
$ billions
$1.39

$1.32

↑     5%
 
 
 
 
 
LOM After-tax NPV (5%)2
$ billions
$1.81

$1.78

↑     1%
LOM After-tax IRR2
%
28.6

26.7

↑     7%
Payback
Years
5.5

5.3

 
 
 
 
 
 
First five years annual averages (2018-2022)
Ounces sold - gold
Ozs Au
458,700

455,400

↑     1%
Ounces sold - silver
Ozs Ag
22,956,600

21,062,100

↑     9%
Adjusted cash costs per ounce3
$/Oz Au
$464

$471

↓     1%
Randy Buffington, President & CEO, stated, “this project is one of the only economic, permitted large projects in the gold space today and has the potential to become a significant, low-cost producer with a long reserve life and large open resource behind that.”
 
 
 
1.
The prefeasibility economics as filed in May 2014 were based on the period January 1, 2014 forward. For comparative purposes with the feasibility, we have adjusted the prefeasibility metrics to begin January 1, 2015.
2.
All costs are on a go-forward basis and consider capital spent to date as sunk costs. Net Present Value (“NPV”) and Internal Rate of Return (“IRR”) are calculated using $1,300 per gold ounce and $21.67 per silver ounce and additional assumptions set forth in the table titled “Assumptions used in the feasibility study estimate” at the end of this press release. No assurance or guarantee is provided that the calculated IRR or NPV values will be achieved. Actual results may differ materially.
3.
The term “adjusted cash costs per ounce” is a non-GAAP financial measure. Non-GAAP financial measures do not have any standardized meaning prescribed by GAAP and, therefore, should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. See the section at the end of this press release and in the most recently filed Annual Report on Form 10-K titled “Non-GAAP Financial Measures” for further information on adjusted cash costs per ounce.

Exhibit 99.2 Press Release

Overview
The feasibility study is based on a nominal 120,000 ton per day (“tpd”) mill for oxide, transition and sulfide ore and the associated heap leach for lower grade oxide and transition ore as presented in the prefeasibility study in May 2014. The mill is designed and scheduled to be constructed in two phases of 60,000 tpd each. Throughput varies based on ore hardness. The mill flow sheet components include crushing, grinding, flotation, concentrate regrind, concentrate oxidation and leaching, tails leaching, Merrill-Crowe extraction and refining. Our projections are based on detailed engineering, which we expect to begin in early 2015, and construction of Phase 1 anticipated commencing in the second quarter of 2015, subject to our ability to secure the necessary financing. Phase 1 is scheduled to be completed within 24 months, which would result in commissioning in the second quarter of 2017. The feasibility study projects commissioning of Phase 2 to be at the end of the second quarter of 2018, 12 months following completion of Phase 1.
The following summarizes feasibility LOM assumptions, compared with the same prefeasibility assumptions, for the mill expansion project:
LOM (2015-2033)
Feasibility
(October 2014)

Prefeasibility(May 2014; adjusted)

Total tons of ore processed (000s) - heap leach and mill
949,201

897,241

Grade - Au (ounces per ton) - heap leach and mill
0.011

0.011

Grade - Ag (ounces per ton) - heap leach and mill
0.49

0.50

Total gold ounces sold (000s)
7,437

7,122

Total silver ounces sold (000s)
340,111

326,419

Total gold equivalent ounces sold (000s)
13,106

12,562

Total revenue at $1,300/oz Au and $21.67/oz Ag (millions)
$
17,037

$
16,332

Revenue per ton processed
$
17.95

$
18.20

Mining cost per ton mined
$
1.37

$
1.39

Milling cost per ton of ore milled
$
9.14

$
8.83

Heap leach cost per ton of ore heap leached (includes crushing)
$
2.45

$
2.47

G&A cost per ton of ore processed
$
0.32

$
0.34

Nevada Net Proceeds Tax and refining cost per ton of ore processed
$
0.48

$
0.47

Capital Estimate
The capital has increased to $1.39 billion (up $66 million) primarily resulting from the following: the change in construction of two 120kV power lines to one 345kV line to ensure reliable power availability; additional conveyors and crushed ore storage for the crushing/pre-crush and pebble crushing circuits; increased site general costs and confirmation of geotechnical analysis on required earthworks; and increased sizing for the thickener tanks. These increases were partially offset by a decrease in contingency reflecting the improved confidence level of the capital estimate with 88% of the estimated equipment capital costs now associated with vendor firm quotes.
Mining and processing
We completed an optimized mine plan that resulted in an additional 52 million ore tons that will be processed during the LOM and a reduced strip ratio of 1.50 (from 1.56). Mining unit costs have decreased slightly resulting from improved haul profiles and a reduction in mining equipment fleet requirements.
The process flow sheet has not changed and still considers a process plant capable of processing three streams: Mill 1 - whole ore; Mill 2 - Atmospheric Alkaline Oxidation (“AAO”); and Mill 3 - AAO with tails leach. A reevaluation of the economic benefit of processing an additional 440 million tons through the tails leach (Mill 3 scenario) as compared with the Mill 2 scenario resulted in additional overall ounces and improved economics.

 
Hycroft Mill Expansion: Feasibility Study Results
2
Exhibit 99.2 Press Release

Mill process costs did not change materially on a per unit basis. Total ton weighted costs increased $0.31/ton to $9.14/ton resulting from the processing of the additional 440 million tons through the Mill 3 scenario, which are more than offset by the revenue from additional ounces recovered. The 440 million tons were assumed to be processed through Mill 2 without the benefit of the additional recovery from tails leaching in the prefeasibility study.
 
GOLD
SILVER
 
Contained Ounces
(000s)
Recovered Ounces (000s)
Recovery (%)
Contained Ounces
(000s)
Recovered Ounces
(000s)
Recovery (%)
Heap Leach
1,940
1,084
55.9
68,732
10,252
14.9
Mill stream 1
845
509
60.2
35,315
24,323
68.9
Mill stream 2
1,225
849
69.3
19,530
11,682
59.8
Mill stream 3
6,541
4,774
73.0
341,698
296,888
86.9
TOTAL
10,551
7,216
68.4
465,275
343,146
73.8
Recovered ounces differ in the table above as compared to the ounces sold in the life of mine economics. The table above shows the ounces placed and recovered on a going-forward basis only to calculate recovery. The life-of-mine model includes 266,000 recoverable ounces of gold and 2,127,000 ounces of recoverable silver in the heap leach inventory at January 1, 2015, and also accounts for ounce reductions due to melt loss and non-payable ounces from the refinery.
Economic Analysis
As noted above, the results of the revised prefeasibility study indicate an IRR projected to be 28.6% and a NPV projected to be $1.81 billion at a discount rate of 5%, assuming gold and silver prices of $1,300 per ounce and $21.67 per ounce, respectively, and based on the additional assumptions set forth in the table titled “Assumptions used in the feasibility study estimate” at the end of this press release. The initial capital to construct the mill and associated infrastructure is on a go-forward basis and does not include capital spent to date on the mill expansion such as the crushing system, Merrill-Crowe plant, mills, motors and excavation. The cash flow model considers the current heap leach revenue and costs as part of the project, which was developed by Allied Nevada.
The Hycroft mill expansion is projected to generate a significant amount of gold and silver at relatively low adjusted cash costs per ounce1. The project, however, is extremely sensitive to metal prices. The following table illustrates the sensitivity of changes to calculated IRR and NPV2 at 0% and 5% discount rates at various gold and silver prices and based on a constant ratio of the silver price to the gold price of 60:1. Additional sensitivity would result from changes to this ratio.
Metal Prices
After tax NPV2 (0%)
After tax NPV2 (5%)
After tax IRR2
Au
Ag
Billions
Billions
%
$1,200
$20.00
$2.26
$1.16
19.5
$1,300
$21.67
$3.22
$ 1.81
28.6
$1,400
$23.33
$4.25
$2.48
38.5
Financing update
We continue to work with interested parties towards establishing a financing plan for the first phase of construction.
 
 
 
1.
The term “adjusted cash costs per ounce” is a non-GAAP financial measure. Non-GAAP financial measures do not have any standardized meaning prescribed by GAAP and, therefore, should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. See the section at the end of this press release and in the most recently filed Annual Report on Form 10-K titled “Non-GAAP Financial Measures” for further information on adjusted cash costs per ounce.
2.
No assurance or guarantee is provided that the calculated IRR or NPV values will be achieved. Actual results may differ materially.

 
Hycroft Mill Expansion: Feasibility Study Results
3
Exhibit 99.2 Press Release

Conference Call Information
Allied Nevada will host a conference call to discuss the feasibility study results on October 16, 2014 at 8:00 am PT (11:00 am ET), which will be followed by a question and answer session. To listen in to the audio webcast, visit www.alliednevada.com.
To access the call, please dial:
Toll‐free in North America - 1‐866-233-4585
Outside of Canada & US - 1‐416-640-5946
An audio recording of the call will be archived on our website following the meeting.
 
 
 
 
 
For further information on Allied Nevada, please contact:
Randy Buffington
 
Tracey Thom
President and CEO
 
Vice President, Investor Relations
(775) 358-4455
 
(775) 789-0119

Assumptions used in the prefeasibility study estimate:
Parameter
Assumption
Description
Mining years
16 years
150 million tons per year (“mtpy”) by 2017, 200 mtpy by 2021
Processing years
19 years
Last 3 years are from stockpiles
Inflation
None - real basis
All projected revenue and costs were assumed to be in January 1, 2015 real terms, with no inflation applied.
Starting basis
January 1, 2015 go-forward
All economic analyses were done on a January 1, 2015, “go-forward” basis.
Capital structure
Unlevered
No debt financing or interest payments were assumed.
Discount rate
5% real
All the NPVs shown in this report were calculated using a discount rate of 5%. Sensitivity analysis has been completed for 0% and 10% discount rates.
Metal prices (base case)
$1,300/oz Au, $21.67/oz Ag (60:1)
Commodity prices were assumed to be constant over the DCF timeframe.
Refining charge
$ 0.75 per Au and Ag oz
Applied a refining charge of $0.50/oz and a deleterious elements charge of $0.25/oz.
Melt loss
-0.5% Au and Ag
Applied to account for melt losses during the refining process.
Payable metal
99.9% Au and 99.0% Ag
Assumptions to arrive at payable metal are based on the current contract with Johnson Matthey.


 
Hycroft Mill Expansion: Feasibility Study Results
4
Exhibit 99.2 Press Release

Feasibility Study Economic Analysis Summary:
 
 
First 5 Years Average
(2018-2022)
Life of Project Average
(2018-2029)
LOM Totals
(2015-2033)
Production Information:
 
 
 
 
Total tons of ore processed - heap leach
(000's)
12,945

8,710

213,032

Tons of ore processed - mill
(000’s)
44,238

45,108

736,169

Tons of waste mined
(000's)
106,645

101,232

1,427,214

Total tons
(000's)
163,828

156,050

2,376,415

Contained gold
 
603,818

614,664

10,550,586

Contained silver
 
29,516,518

28,838,685

465,274,7777

Ounces sold - gold
 
458,737

447,866

7,437,167

Ounces sold - silver
 
22,956,625

23,209,316

340,110,809

Ounces sold - gold equivalent
 
841,347

834,688

13,105,681

 
 
 
 
 
Cash Flow Information:
 
 
 
 
Cash inflows:
 
 
 
 
Revenue from metal sales
($ 000's)
1,093,751

1,085,094

17,037,385

Cash outflows:
 
 
 
 
Operating costs
($ 000's)
710,149

675,225

11,552,453

Income taxes
($ 000's)
15,074

39,360

483,492

Inventory adjustments
($ 000's)
2,792

21,742

(283,746)

Reclamation spending & salvage
($ 000's)
0

0

77,413

Capital spending
($ 000's)
87,137

51,245

1,985,680

Total Cash Outflows
($ 000's)
815,152

787,572

13,815,292

Net Cash Flow
($ 000's)
278,599

297,522

3,222,093

After-tax NPV @ 5%
($ 000's)
 
 
1,807,961

After-tax NPV @ 10%
($ 000's)
 
 
1,017,763

After-tax Internal Rate of Return
%
 
 
28.6

Adjusted cash costs per ounce1 of gold sold:
 
 
 
 
With silver as byproduct credit
($ / Oz)
$ 464

$ 385

$ 562

Gold equivalent
($ / Oz)
$ 844

$ 809

$ 881

From a silver production and sales point of view:
 
 
 
Silver equivalent production (ounces Ag)
 
50,480,824

50,081,261

786,340,836

Adjusted cash costs with gold as a byproduct credit ($/silver ounce sold)
$ 5

$ 4

$ 6

Metal selling prices used in determining the economics for the project were $1,300 per ounce of gold and $21.67 per ounce of silver. Gold equivalent is calculated using a 60:1 silver to gold ounce ratio.
No assurance or guarantee is provided that the calculated IRR or NPV values will be achieved. Actual results may differ materially.

 
 
 
1.
The term “adjusted cash costs per ounce” is a non-GAAP financial measure. Non-GAAP financial measures do not have any standardized meaning prescribed by GAAP and, therefore, should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. See the section at the end of this press release and in the most recently filed Annual Report on Form 10-K titled “Non-GAAP Financial Measures” for further information on adjusted cash costs per ounce.


 
Hycroft Mill Expansion: Feasibility Study Results
5
Exhibit 99.2 Press Release

Cautionary Statement Regarding Forward Looking Information
This press release contains forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended (the “Securities Act”), Section 21E of the U.S. Securities Exchange Act of 1934, as amended (the”Exchange Act”) (and the equivalent under Canadian securities laws) and the Private Securities Litigation Reform Act (the “PSLRA”) or in releases made by the U.S. Securities and Exchange Commission (the “SEC”), all as may be amended from time to time. This cautionary statement is being made pursuant to the Securities Act, the Exchange Act and the PSLRA with the intention of obtaining the benefit of the “safe harbor” provisions of such laws.
All statements, other than statements of historical fact, included herein or incorporated by reference, that address activities, events or developments that we expect or anticipate will or may occur in the future, are forward-looking statements. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “estimate”, “plan”, “anticipate”, “expect”, “intend”, “believe”, “project”, “target”, “budget”, “may”, "can", “will”, “would”, “could”, "should", “seeks”, or “scheduled to”, or other similar words, or negatives of these terms or other variations of these terms or comparable language or any discussion of strategy or intentions. Such forward-looking statements include, without limitation, statements regarding our future business strategy, plans and goals; future gold and silver prices; delays in processing gold and silver; the potential for confirming, upgrading and expanding gold and silver mineralized material at Hycroft; reserve and resource estimates and the timing of the release of updated estimates; estimates of gold and silver grades; future prices for gold and silver; recovery rates for gold and silver; anticipated operating, capital and construction costs, ; anticipated sales, project economics, net present values and expected rates of return; the realization of expansion and construction activities and the costs and timing thereof; availability and cost of financing; production estimates and other statements that are not historical facts.
Forward-looking statements address activities, events or developments that Allied Nevada expects or anticipates will or may occur in the future, and are based on current expectations and assumptions. These statements involve known and unknown risks, uncertainties, assumptions and other factors which may cause our actual results, performance or achievements to be materially different from any results, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause actual results, performance or achievements to differ materially from those in the forward-looking statements include, among others, risks that Allied Nevada’s exploration and property advancement efforts will not be successful; risks relating to fluctuations in the price of gold and silver; an increase in the cost of or a delay or deferral timing of new projects, including construction or expansion projects; the inherently hazardous nature of mining-related activities; uncertainties concerning reserve, resource and grade estimates; uncertainties relating to obtaining approvals and permits from governmental regulatory authorities; and availability and timing of capital for financing the Company’s exploration, development and expansion activities, including the uncertainty of being able to raise capital on favorable terms or at all; as well as those factors discussed in Allied Nevada’s filings with the SEC including Allied Nevada’s latest Annual Report on Form 10-K and its other SEC filings (and Canadian filings) including, without limitation, its latest Quarterly Report on Form 10-Q (which may be secured from us, either directly or from our website at www.alliednevada.com or at the SEC website www.sec.gov). Although Allied Nevada has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those described in forward-looking statements, there may be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results, performance and achievements and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not intend to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities laws.
The technical contents of this news release have been prepared under the supervision of Daniel Roth, Project Manager at M3 Engineering and Technology, and Tony Peterson, Corporate Mine Engineer at Allied Nevada Gold Corp., a Registered Professional Engineer in the State of Colorado #43867 who are Qualified Persons as defined by National Instrument 43-101. For further information regarding the quality assurance program and the quality control measures applied, as well as other relevant technical information, please see technical report titled “Hycroft Mine, NI 43-101 Technical Report, Mill Expansion Prefeasibility Study, Winnemucca, Nevada, USA” and dated May 21, 2014 on www.sedar.com.

Non-GAAP Financial Measure
Adjusted Cash Costs Per Ounce
Adjusted cash costs per ounce is a non-GAAP financial measure, calculated on a per ounce of gold sold basis, and includes all direct and indirect operating cash costs related to the physical activities of producing gold, including mining, processing, cash portions of production costs written-down, the effective portion of any cash flow hedges, third party refining expenses, on-site administrative and support costs, royalties, and mining production taxes, net of revenue earned from silver sales. Because we are a primary gold producer and our operations focus on maximizing profits and cash flows from the extraction and sale of gold, we believe that silver revenue is peripheral and not material to our key performance measures or our Hycroft Mine operating segment and, as such, adjusted cash costs per ounce is reduced by the benefit received from silver sales.
Adjusted cash costs per ounce provides management and investors with a further measure, in addition to conventional measures prepared in accordance with GAAP, to assess the performance of our mining operations and ability to generate cash flows over multiple periods from the sale of gold. Non-GAAP financial measures do not have any standardized meaning prescribed by GAAP and, therefore, may not be comparable to similar measures presented by other mining companies. Accordingly, the above measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.



 
Hycroft Mill Expansion: Feasibility Study Results
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