Shares
Outstanding:
295,518,506
Trading
Symbols:
TSX: GGD
OTCQX: GLGDF
HALIFAX,
NS, Aug. 11, 2022 /PRNewswire/ - GoGold
Resources Inc. (TSX: GGD) (OTCQX: GLGDF) ("GoGold",
"the Company") is pleased to announce the financial results for
the third fiscal quarter of 2022, for the three months ended
June 30, 2022 where Parral generated
$10.4 million in revenue (all amounts
are in U.S. dollars) from the sale of 512,670 silver equivalent
ounces.
"In the quarter, we continued to focus on our Los Ricos project
as we advance Los Ricos South to a pre-feasibility study and
continue with our drilling program at Los Ricos North," said
Brad Langille, President and
CEO. "Parral continues to produce for us, providing
meaningful cash flow, despite the lower market silver price in the
quarter, which contributes to the general and administrative costs
and the Los Ricos exploration budget."
During the quarter Parral generated free cash of $3.7 million before working capital changes
(Non-IFRS measure, see reconciliation in management's discussion
and analysis as filed on SEDAR). Silver equivalent ounces sold
increased by 15% compared to the March quarter end. Production is
lower compared to the prior year as the project transitioned to a
different zone in the tailings deposit at the start of 2022 which
resulted in a lower stacking rate during the year so far to improve
pad kinetics.
Highlights for the quarter ending June
30, 2022:
- Revenue of $10.4 million on the
sale of 512,670 silver equivalent ounces at a realized price per
ounce of $20.26 per oz
- Cash of $73.8 million USD
- Production of 509,796 silver equivalent ounces, consisting of
213,495 silver ounces, 3,081 gold ounces, and 98 copper tonnes
- Cash cost per silver equivalent ounce of $13.17
At Los Ricos, the Company drilled 22,778 metres on the projects
for the quarter ended June 30, 2022
compared to 26,030 metres in the quarter ending March 31, 2022. The Company capitalized
$7.9 million to the projects for
drilling, exploration and consulting for the quarter ended
June 30, 2022, compared to
$6.0 million in the prior year. This
included $4.7 million at Los Ricos
North and $3.2 million at Los Ricos
South. The Corporation is continuing the engineering studies
required for a pre-feasibility study at Los Ricos South and
undergoing a 100,000 metre drilling campaign at Los Ricos North in
2022 with the focus on increasing ounces in Mineral Resource
Estimates.
Following are tables showing summarized financial
information and key performance indicators:
Summarized
Consolidated Financial Information
|
Three months ended
Jun 30
|
Nine months ended
Jun 30
|
(in thousands USD,
except per share amounts)
|
2022
|
2021
|
2022
|
2021
|
Revenue
|
$ 10,389
|
$ 14,973
|
$ 29,578
|
$ 42,282
|
Cost of sales,
including depreciation
|
7,962
|
8,754
|
21,402
|
25,190
|
Operating
income
|
221
|
746
|
2,101
|
8,174
|
Net income
(loss)
|
1,110
|
438
|
(382)
|
7,406
|
Basic net income (loss)
per share
|
0.004
|
0.002
|
(0.001)
|
0.028
|
Cash flow from
operations
|
(1,190)
|
2,714
|
(7,467)
|
11,839
|
Key Performance
Indicators1
|
Three months ended
Jun 30
|
Nine months ended
Jun 30
|
(in thousands USD,
except per ounce amounts)
|
2022
|
2021
|
2022
|
2021
|
Total tonnes
stacked
|
360,460
|
480,499
|
1,311,691
|
1,347,811
|
Recoverable silver
equivalent ounces stacked
|
475,000
|
610,000
|
1,713,000
|
1,775,000
|
Silver equivalent
ounces sold
|
512,670
|
563,401
|
1,357,826
|
1,706,560
|
AISC per silver
equivalent ounce2
|
$
17.73
|
$
16.98
|
$ 18.11
|
$
16.12
|
Cash cost per silver
equivalent ounce2
|
$
13.17
|
$
13.31
|
$ 13.29
|
$
12.79
|
Realized silver
price
|
$
20.26
|
$
26.58
|
$ 21.78
|
$
24.78
|
Metres
drilled
|
22,778
|
26,030
|
63,694
|
60,885
|
1Key
performance indicators are unaudited non-GAAP measures.
2Gold and copper are converted using average market
prices.
|
This news release should be read in conjunction with the interim
condensed consolidated financial statements for the three and nine
months ended June 30, 2022, notes to
the financial statements, and management's discussion and analysis
for the quarter ended June 30, 2022,
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.
About GoGold Resources
GoGold Resources (TSX: GGD) is a Canadian-based silver and gold
producer focused on operating, developing, exploring and acquiring
high quality projects in Mexico.
The Company operates the Parral Tailings mine in the state of Chihuahua and has the Los Ricos South
and Los Ricos North exploration projects in the state of
Jalisco. Headquartered in
Halifax, NS, GoGold is building a
portfolio of low cost, high margin projects. For more information
visit gogoldresources.com.
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 Parral tailings project, the Los Ricos project, future
operating margins, future production and processing, and 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 performance of the Parral project 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, the effects of the global COVID-19 pandemic, 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 August 10, 2022 for
the quarter ended June 30, 2022, as
presented on SEDAR.
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SOURCE GoGold Resources Inc.