Scorpio Gold Reports Financial Results for First Quarter of 2014
May 20 2014 - 8:00AM
Marketwired
Scorpio Gold Reports Financial Results for First Quarter of 2014
VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 20, 2014) -
Scorpio Gold Corporation ("Scorpio Gold" or the "Company")
(TSX-VENTURE:SGN) is pleased to announce its financial results for
the first quarter ended March 31, 2014 ("Q1"). This press release
should be read in conjunction with the Company's condensed
consolidated interim financial statements for the three-month
period ended March 31, 2014 and Management Discussion &
Analysis for the same period, available on the Company's website at
www.scorpiogold.com and under the Company's name on SEDAR at
www.sedar.com. All monetary amounts are expressed in US dollars
unless otherwise specified.
PERFORMANCE HIGHLIGHTS:
|
Q1 2014 |
Q1 2013 |
|
$ |
$ |
Revenue ($000's) |
13,249 |
11,666 |
Mine
operating earnings ($000's) |
1,330 |
3,570 |
Net
earnings ($000's) |
378 |
2,096 |
Basic
and diluted earnings per share |
0.00 |
0.01 |
Adjusted net earnings (1) ($000's) |
386 |
2,098 |
Adjusted basic and diluted net earnings per share(1) |
0.00 |
0.01 |
Adjusted EBITDA(1) ($000's) |
3,928 |
6,864 |
Adjusted basic and diluted EBITDA per share(1) |
0.02 |
0.04 |
Cash
flow from operating activities($000's) |
3,363 |
6,074 |
Total
cash cost per ounce of gold sold(1) |
794 |
774 |
Gold ounces produced |
10,294 |
7,411 |
Peter Hawley, CEO, comments, "The Mineral Ridge operation has
posted another strong quarter, producing 10,294 ounces gold at a
cash cost of $794 per ounce of gold sold, and is well on track of
the Company's 2014 production forecast of 40,000 to 45,000 ounces
gold at a cash cost of $800 to $850 per ounce of gold sold. Our
focus remains on operational excellence, and I am very proud of the
team's continued ability to deliver solid results despite a lower
average gold price."
(1) This is a non-IFRS measure; refer to Non-IFRS Measures
section of this press release and the Company's Management
Discussion & Analysis for Q1 of 2014 for a complete definition
and reconciliation to the IFRS results reported in the Company's
financial statements for Q1 of 2014.
Highlights for the First Quarter Ended March 31, 2014:
- 10,294 ounces of gold were produced at the Mineral Ridge mine
during Q1 of 2014, compared to 7,411 ounces during Q1 of 2013. This
39% increase is primarily caused by the fact that production
numbers for Q1 of 2013 were negatively impacted by the prior sale
of approximately 1,878 ounces of gold and 759 ounces of silver as
part of a sale of loaded carbon that accelerated production and
revenue in Q4 of 2012.
- Increased revenues of $13.2 million compared to $11.7 million
during Q1 of 2013, due to a 46% increase in ounces of gold sold
offset by a lower average gold price during Q1 of 2014.
- Total cash cost per ounce of gold sold(1) of $794 compared to
$774 during Q1 of 2013, representing a 3% increase.
- Higher production levels during Q1 of 2014 did not completely
offset the decrease in the average gold price which consequently
negatively impacted the following:
- Mine operating earnings(1) of $1.3 million compared to $3.6
million during Q1 of 2013, mainly due to the lower average gold
price during Q1 of 2014.
- Net earnings and adjusted net earnings(1) of $0.4 million
($0.00 basic and diluted per share), compared to net earnings and
adjusted net earnings of $2.1 million ($0.01 basic and diluted per
share) during Q1 of 2013.
- Adjusted EBITDA (1) of $3.9 million ($0.02 basic and diluted
per share) compared to $6.9 million ($0.04 basic and diluted per
share) during Q1 of 2013.
- Receipt of approval for the new plan of operations at the
Mineral Ridge mine in February 2014, which allows for the planned
expansion of the Mary pit.
- Sale of the Pinon property on March 5, 2014, with approximately
$5.2 million of the proceeds from such sale being applied to reduce
the Company's long term debt to less than $6 million as at March
31, 2014.
(1) This is a non-IFRS measure; please see Non-IFRS measures
section.
Non-IFRS Measures
The discussion of financial results in this press release
includes reference to Adjusted EBITDA, Total cash cost per ounce of
gold sold and Adjusted Net Earnings, which are non-IFRS measures.
The Company provides these measures as additional information
regarding the Company's financial results and performance. Please
refer to the Company's MD&A for the three months ended March
31, 2014 for definitions of these terms and a reconciliation of
these measures to reported IFRS results.
About Scorpio Gold Corporation
Scorpio Gold holds a 70% interest in the Mineral Ridge gold
mining operation located in Esmeralda County, Nevada with joint
venture partner Waterton Global Value L.P. (30%), and is currently
entitled to receive 80% of cash flow generated. Mineral Ridge is
currently in production as a conventional open pit mining and heap
leach operation. The Mineral Ridge property is host to multiple
gold-bearing structures, veins and lenses at exploration,
development and production stages. Scorpio Gold also holds a 100%
interest in the advanced exploration-stage Goldwedge property and
processing facility in Manhattan, Nevada. The Company is assessing
its exploration plans for the Goldwedge property as well as the
potential for toll milling at the Goldwedge plant currently
permitted for 400 ton per day.
Scorpio Gold's CEO, Peter J. Hawley, P.Geo., is a Qualified
Person as defined in National Instrument 43-101 and has reviewed
and approved the content of this release. For additional
information, please see the Company's website at
www.scorpiogold.com
ON BEHALF OF THE BOARD
SCORPIO GOLD CORPORATION
Peter J. Hawley, CEO
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
The Company relies on litigation protection for
"forward-looking" statements. This news release contains
forward-looking statements that are based on the Company's current
expectations and estimates. Forward-looking statements are
frequently characterized by words such as "plan", "expect",
"project", "intend", "believe", "anticipate", "estimate",
"suggest", "indicate" and other similar words or statements that
certain events or conditions "may" or "will" occur, and include,
without limitation, statements regarding the Company's plans with
respect to the exploration, development and exploitation of its
Mineral Ridge project, including any forecasts regarding future
production or costs related thereto. Such forward-looking
statements involve known and unknown risks, uncertainties and other
factors that could cause actual events or results to differ
materially from estimated or anticipated events or results implied
or expressed in such forward-looking statements, including risks
relating to operation of a gold mine, including unanticipated
changes in the mineral content of materials being mined;
unanticipated changes in recovery rates; changes in project
parameters; failure of equipment or processes to operate as
anticipated; the failure of contracted parties to perform;
availability of skilled labour and the impact of labour disputes;
delays in obtaining governmental approvals; changes in metals
prices; the availability of cash flows or financing to meet the
Company's ongoing financial obligations; unanticipated changes in
key management personnel; changes in general economic conditions;
other risks of the mining industry and those risk factors outlined
in the Company's Management Discussion and Analysis as filed on
SEDAR. Any forward-looking statement speaks only as of the date on
which it is made and, except as may be required by applicable
securities laws, the Company disclaims any intent or obligation to
update any forward-looking statement, whether as a result of new
information, future events or results or otherwise. Forward-looking
statements are not guarantees of future performance and accordingly
undue reliance should not be put on such statements due to the
inherent uncertainty thereof.
Steve Roebuck, President(819)
825-7618sroebuck@scorpiogold.comInvestor Relations:Jim Macdonald,
Torrey Hills Capital(858)
456-7300jm@sdthc.comwww.scorpiogold.com
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