Shares Outstanding: 186,148,461
Trading Symbols: TSX: GGD
OTCQX: GLGDF
HALIFAX, Feb. 3, 2020 /CNW/ - GoGold Resources
Inc. (TSX: GGD) (OTCQX: GLGDF) ("GoGold", "the Company") is
pleased to announce the release of financial results for the
quarter ending December 31, 2019 with
revenue of $9.3 million (all amounts
are in U.S. dollars) from the sale of 555,298 silver equivalent
ounces and net income of $535,000.
"Parral generated $2.3 million of
cash flow at site, and the Company after general and administrative
and working capital changes generated $789,000 from operations. Parral had
another record production quarter and compared to a year ago
revenue has more than doubled, driving the turn around in cash flow
from operations," Brad Langille,
President and CEO stated. "With commissioning on the SART
underway, we expect to soon realize the benefits of this
optimization to Parral's profitability."
Financial Highlights for the quarter ending December 31, 2019:
- Revenue of $9.3 million, an
increase of 241% from prior year
- Record production of 584,988 silver equivalent ounces, an
increase of 80% from prior year
- Net income of $535,000
- Cash flow from operations of $0.8
million, including $1.5
million before changes in working capital
- Cash of $5 million, an increase
from $2.4 million at September 30, 2019
- All in sustaining costs of $14.59
per silver equivalent ounce
- Cash costs of $12.54 per silver
equivalent ounce
Summarized
Consolidated Financial Information
|
Three months ended
December 31
|
(in thousands USD,
except per share amounts)
|
2019
|
2018
|
Revenue
|
$
|
9,293
|
$
|
3,850
|
Cost of
sales
|
$
|
8,110
|
$
|
5,437
|
Operating income
(loss)
|
$
|
160
|
$
|
(2,724)
|
Net
income1
|
$
|
535
|
$
|
8,153
|
Basic net income
(loss) per share
|
$
|
0.003
|
$
|
0.47
|
Cash flow from
operations
|
$
|
789
|
$
|
(3,210)
|
Cash flow from
operations, before changes in non-cash working capital
|
$
|
1,463
|
$
|
(341)
|
1Net
income in 2018 includes a gain of $11,837 on the sale of the Santa
Gertrudis royalty
|
Key Performance
Indicators1
|
Three months ended
December 31
|
(in thousands USD,
except per ounce amounts)
|
2019
|
2018
|
Total tonnes
stacked
|
331,279
|
355,613
|
AISC per silver
equivalent ounce2
|
$
|
14.59
|
$
|
20.25
|
Adjusted AISC per
silver equivalent ounce2,4
|
$
|
14.59
|
$
|
16.77
|
Cash cost per silver
equivalent ounce2
|
$
|
12.54
|
$
|
15.80
|
Adjusted cash cost
per silver equivalent ounce2,4
|
$
|
12.54
|
$
|
12.32
|
Realized silver
price
|
$
|
16.75
|
$
|
14.20
|
1Key
performance indicators are unaudited non-GAAP
2Gold is converted using actual realized prices
3Using Gold as a by-product credit
4Adjusted for net realizable value adjustment of $994 in
quarter ending Dec 31, 2018, see reconciliation in
MD&A
|
This news release should be read in conjunction with the interim
condensed consolidated financial statements for the quarter ended
December 31, 2019, notes to the
financial statements, and management's discussion and analysis for
the quarter ended December 31, 2019,
which have been filed on SEDAR and are available on the Company's
website.
In addition, the Company filed an amended and restated annual
information form on SEDAR as an update to the annual information
form dated December 30, 2019 to,
among other things, clarify that the Company considers their
Promotora tailings project to be a mineral project on a property
that is not material to the Company.
Technical information contained in this news release with
respect to GoGold has been reviewed and approved by Mr.
Bob Harris, P.Eng., who is a
qualified person for the purposes of NI 43-101.
CAUTIONARY STATEMENT:
The securities described herein
have not been, and will not be, registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act"), or
any state securities laws, and may not be offered or sold within
the United States or to, or for
the benefit of, U.S. persons (as defined in Regulation S under the
U.S. Securities Act) except in compliance with the registration
requirements of the U.S. Securities Act and applicable state
securities laws or pursuant to exemptions therefrom. This release
does not constitute an offer to sell or a solicitation of an offer
to buy of any of GoGold's securities in the United States.
This news release may contain "forward-looking information" as
defined in applicable Canadian securities legislation. All
statements other than statements of historical fact, included in
this release, including, without limitation, statements regarding
the future plans and objectives of GoGold, constitute
forward-looking information that involve various risks and
uncertainties. Forward-looking information is based on
a number of factors and assumptions which have been used to develop
such information but which may prove to be incorrect, including,
but not limited to, assumptions in connection with the continuance
of GoGold and its subsidiaries as a going concern, general economic
and market conditions, mineral prices, the accuracy of mineral
resource estimates, and the ability to satisfy all conditions to
funding of the second tranche under the credit
agreement. There can be no assurance that such
information will prove to be accurate and actual results and future
events could differ materially from those anticipated in such
forward-looking information.
Important factors that could cause actual results to differ
materially from GoGold's expectations include exploration and
development risks associated with the GoGold's projects, the
failure to establish estimated mineral resources or mineral
reserves, volatility of commodity prices, variations of recovery
rates and global economic conditions. For additional information
with respect to risk factors applicable to GoGold, reference should
be made to GoGold's continuous disclosure materials filed from time
to time with securities regulators, including, but not limited to,
GoGold's Annual Information Form. The forward-looking information
contained in this release is made as of the date of this
release.
Cautionary non-GAAP Measures and Additional GAAP
Measures
Note that for purposes of this section, GAAP
refers to IFRS. The Company believes that investors use certain
non-GAAP and additional GAAP measures as indicators to assess
mining companies. They are intended to provide additional
information and should not be considered in isolation or as a
substitute for measures of performance prepared with GAAP. Non-GAAP
and additional GAAP measures do not have a standardized meaning
prescribed under IFRS and therefore may not be comparable to
similar measures presented by other companies.
Additional GAAP measures that are presented on the face of the
Company's consolidated statements of comprehensive income include
"Operating income (loss)". These measures are intended to provide
an indication of the Company's mine and operating performance.
"Cash flow from operating activities before changes in non-cash
working capital" is a non-GAAP performance measure that could
provide an indication of the Company's ability to generate cash
flows from operations, and is calculated by adding back the change
in non-cash working capital to "Net cash used in operating
activities" as presented on the Company's consolidated statements
of cash flows. Per ounce measures are calculated by dividing the
relevant mining and processing costs and total costs by the tonnes
of ore processed in the period. "Cash costs per ounce" and "all-in
sustaining costs per ounce" as used in this analysis are non-GAAP
terms typically used by mining companies to assess the level of
gross margin available to the Company by subtracting these costs
from the unit price realized during the period. These non-GAAP
terms are also used to assess the ability of a mining company to
generate cash flow from operations. There may be some variation in
the method of computation of these metrics as determined by the
Company compared with other mining companies. In this context,
"cash costs per ounce" reflects the cash operating costs allocated
from in-process and dore inventory associated with ounces of silver
and gold sold in the period. "Cash costs per ounce" may vary from
one period to another due to operating efficiencies, grade of
material processed and silver/gold recovery rates in the period.
"All-in sustaining costs per ounce" include total cash costs,
exploration, corporate and administrative, share based compensation
and sustaining capital costs. For a reconciliation of non-GAAP and
GAAP measures, please refer to the Management Discussion and
Analysis dated February 2, 2020, for
the quarter ended December 31, 2019,
as presented on SEDAR.
SOURCE GoGold Resources Inc.