Trading Symbol: TSX: GGD
Shares Outstanding: 171,376,481
HALIFAX, Feb. 13, 2017 /CNW/ - GoGold Resources
Inc. (TSX: GGD) ("GoGold", "the Company") is pleased to
announce the release of financial results for the quarter ending
December 31, 2016. GoGold recorded
revenue of $6.9 million from the sale
of 413,941 silver equivalent ounces with a cash cost per silver
equivalent ounce of $6.70, with an
operating income of $2.175 million
for the quarter (All amounts are in U.S. dollars).
Financial Highlights for the quarter ending December 31, 2016:
- Revenue of $6.856 million from
the sale of 413,941 silver equivalent ounces, a realized price of
$16.56 per silver equivalent
ounce
- Operating income of $2.175
million
- Cash flow from operations before changes in non-cash working
capital of $3 million, or
2 cents per basic share
- Cash cost per silver equivalent ounce of $6.70
- All in sustaining cost per silver equivalent ounce of
$9.16
- Produced 403,545 silver equivalent ounces
GoGold produced 4,249 gold ounces and 102,371 silver ounces for
a total of 403,545 silver equivalent ounces in the quarter ending
December 31, 2016. The
Company's Parral project contributed 1,539 gold and 91,022 silver
ounces for a total of 200,063 silver equivalent ounces.
Adjustments made to the heap leach process in November began to
take effect in the current quarter and management is confident that
they will see continued increases in the Parral production in the
upcoming quarter. The Company is in the final process of
commissioning a previously announced sulphidization, acidification,
recycling and thickening ("SART") plant which will lower cyanide
costs by recycling of cyanide within the process, as well as
providing revenues from base metals.
The Santa Gertrudis high grade project produced 2,710 ounces of
gold and 11,349 ounces of silver, for a total of 203,482 silver
equivalent ounces. The Company continues to process the high
grade material from the Santa Gertrudis project while construction
on the vat leach plant for the feasibility study continues to
progress, with forms in place and concrete ready to be poured for
the vats.
Summarized
Consolidated Financial Information
|
Three months ended
December 31
|
(in thousands USD,
except per share amounts)
|
2016
|
2015
|
Revenue
|
$
|
6,856
|
$
|
3,001
|
Cost of
sales
|
$
|
3,680
|
$
|
2,176
|
Operating income
(loss)
|
$
|
2,175
|
$
|
(268)
|
Net income
(loss)
|
$
|
662
|
$
|
(2,349)
|
Basic net income
(loss) per share
|
$
|
0.00
|
$
|
(0.01)
|
Cash flow from
operations, before changes in non-cash working capital
|
$
|
2,813
|
$
|
123
|
Cash cost per silver
equivalent ounce1,2
|
$
|
6.70
|
$
|
6.54
|
All in sustaining
cost per silver equivalent ounce1,2
|
$
|
9.16
|
$
|
10.23
|
Realized silver
price2
|
$
|
16.56
|
$
|
13.68
|
1Gold is
converted using actual market metal price for the period (2016 –
71, 2015 – 77) 2Unaudited non-IFRS measure
|
This news release should be read in conjunction with the
condensed consolidated interim financial statements for the three
months ended December 31, 2016, notes
to the financial statements, and management's discussion and
analysis for the three months ended December
31, 2016, which have been filed on SEDAR and are available
on the Company's website.
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-IFRS Measures and Additional IFRS
Measures
The Company believes that investors use certain
non-IFRS and additional IFRS 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 IFRS. Non-IFRS
and additional IFRS measures do not have a standardized meaning
prescribed under IFRS and therefore may not be comparable to
similar measures presented by other companies.
Additional IFRS 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-IFRS 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 ounces
of metal sold in the period. "Cash costs per ounce" and "all-in
sustaining costs per ounce" as used in this analysis are non-IFRS
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-IFRS
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-IFRS and
IFRS measures, please refer to the Management Discussion and
Analysis dated February 8, 2017, for
the three months ended December 31,
2016, as presented on SEDAR.
SOURCE GoGold Resources Inc.