Trading Symbol: TSX: GGD
Shares Outstanding: 171,376,481
HALIFAX, May 11, 2017 /CNW/ - GoGold Resources Inc.
(TSX: GGD) ("GoGold", "the Company") is pleased to announce the
release of financial results for the quarter ending March 31, 2017. GoGold recorded revenue of
$7.1 million from the sale of 413,073
silver equivalent ounces with a cash cost per silver equivalent
ounce of $9.80 and an operating
income of $1.8 million for the
quarter (All amounts are in U.S. dollars).
Financial Highlights for the quarter ending March 31, 2017:
- Revenue of $7.1 million from the
sale of 413,073 silver equivalent ounces, a realized price of
$17.21 per silver equivalent
ounce
- Operating income of $1.8
million
- Cash flow from operations before changes in non-cash working
capital of $2.4 million, or
1 cent per basic share
- Cash cost per silver equivalent ounce of $9.80
- All in sustaining cost per silver equivalent ounce of
$11.76
- Produced 422,773 silver equivalent ounces
GoGold produced 4,065 gold ounces and 138,179 silver ounces for
a total of 422,773 silver equivalent ounces in the quarter ending
March 31, 2017. The Company's Parral
project contributed 2,008 gold and 137,606 silver ounces for a
total of 278,230 silver equivalent ounces. Parral production
continues to increase as improvements to the heap leaching process
made in November 2016 take effect,
with March marking the seventh consecutive month that production
has increased. The Corporation expects to see continued increases
in production in the near term. The Santa Gertrudis high grade
project produced 2,057 ounces of gold and 573 ounces of silver, for
a total of 144,543 silver equivalent ounces.
Financial Highlights for the six months ending March 31, 2017:
- Revenue of $14.0 million from the
sale of 827,014 silver equivalent ounces, a realized price of
$16.89 per silver equivalent
ounce
- Operating income of $4.0
million
- Cash flow from operations before changes in non-cash working
capital of $5.2 million, or
3 cents per basic share
- Cash cost per silver equivalent ounce of $8.25
- All in sustaining cost per silver equivalent ounce of
$10.41
- Produced 826,318 silver equivalent ounces
Summarized
Consolidated Financial Information
|
Three months ended
March 31
|
|
Six months ended
March 31
|
(in thousands USD,
except per share and per ounce amounts)
|
2017
|
2016
|
|
2017
|
2016
|
Revenue
|
$ 7,111
|
$ 5,081
|
|
$ 13,967
|
$ 8,082
|
Cost of
sales
|
4,048
|
3,532
|
|
8,705
|
5,708
|
Operating
income
|
1,806
|
631
|
|
4,020
|
363
|
Net income
(loss)
|
610
|
(18,131)
|
|
1,271
|
(19,453)
|
Cash flow from
operations, before changes in non-cash working capital
|
2,404
|
1,583
|
|
5,222
|
1,732
|
Basic net income
(loss) per share
|
$ 0.00
|
$ (0.10)
|
|
$ 0.01
|
$ (0.12)
|
Cash cost per silver
equivalent ounce1,2
|
9.80
|
6.58
|
|
8.25
|
6.56
|
All in sustaining
cost per silver equivalent ounce1,2
|
11.76
|
9.25
|
|
10.41
|
9.63
|
Realized silver
price2
|
17.21
|
14.56
|
|
16.89
|
14.22
|
|
|
|
|
|
|
|
1Gold is
converted using actual market metal price for the period based on
the London Fixed price
|
2Unaudited
non-IFRS measure
|
This news release should be read in conjunction with the
condensed consolidated interim financial statements for the quarter
ended March 31, 2017, notes to the
financial statements, and management's discussion and analysis for
the quarter ended March 31, 2017,
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 May 9, 2017, for the
quarter ended March 31, 2017, as
presented on SEDAR.
SOURCE GoGold Resources Inc.