GoGold Completes Construction of Zinc Circuit at Parral and Releases Financial Results for 2023
GoGold Completes Construction of Zinc Circuit at Parral and Releases
Financial Results for 2023
HALIFAX, NS
,
Dec. 19, 2023
/CNW/ -
GoGold Resources Inc.
(TSX: GGD) (OTCQX: GLGDF)
("GoGold", "the Company")
announces the financial
results for the year ending
September 30, 2023
, with Parral generating
$30 million
(all amounts are in U.S. dollars) from the sale of 1.4 million silver
equivalent ounces.
"As we look forwards towards 2024 and the opportunity for value creation for GoGold shareholders, it cannot be understated that the Company is well
positioned with such a strong balance sheet, including
$95 million USD
and strong economics demonstrated from the preliminary economic assessments at
Los Ricos North and South. At Los Ricos South, we've been working with our technical team and consultants to complete all engineering and technical
work required to make a construction decision on the project in the upcoming year. As part of this work, we are in the process of completing a definitive
feasibility study which we expect to release in the first six months of 2024, and advancing the mine permitting application process" said Brad Langille,
President and CEO. "At Parral, we've completed construction of our SART Zinc circuit on time and on budget and are currently in the commissioning
process. We expect to see the benefits of this project both in an increase in free cash flow and production from Parral in the upcoming year."
Highlights for the year ending
September 30, 2023
:
Cash of
$95.3 million USD
Revenue of
$30.3 million
on the sale of 1.4 million silver equivalent ounces at a realized price per ounce of
$22.07
per oz
Net loss of
$7.9 million
, after deduction of non-cash inventory valuation adjustment of
$10.5 million
and asset impairment charge of
$3.0 million
.
Production of 1,517,264 silver equivalent ounces, consisting of 706,891 silver ounces, 7,032 gold ounces, and 615 copper tonnes
Adjusted cash cost per silver equivalent ounce of
$15.01
Adjusted all in sustaining cost per silver equivalent ounce of
$20.78
During 2023, while the tests and construction of the SART Zinc circuit was underway, the Company completed a rehandling program at Parral which
resulted in creating additional space on the heap leach pad which will defer capital expenditures on the project. As a result, a negative inventory
adjustment of
$10.5 million
was recorded in the year resulting in an increased operating and net loss. As a result of the rehandling project, production
decreased during the year, and the decline in results constituted an indicator of impairment in the quarter ending
September 30
, 2023. An impairment
assessment was completed resulting in the recognition of a non-cash pre-tax impairment loss of
$3.0 million
. The operation of the SART Zinc circuit in
2024 should return Parral to normal profitable operations.
Following are tables showing summarized financial information and key performance indicators:
Summarized Consolidated Financial Information
Three months ended Sep 30
Year ended Sep 30
(in thousands USD, except per share amounts)
2023
2022
2023
2022
Revenue
$ 5,690
$ 6,476
$ 30,260
$ 36,054
Cost of sales, including depreciation
5,412
9,332
34,209
30,734
Operating loss
(1,514)
(4,840)
(11,840)
(3,079)
Net (loss) income
(4,295)
1,076
(7,890)
692
Basic net (loss) income per share
(0.014)
0.004
(0.025)
0.002
Cash flow from operations
(140)
6,492
(7,419)
(976)
Key Performance Indicators
1
Three months ended Sep 30
Year ended Sep 30
(in thousands USD, except per ounce amounts)
2023
2022
2023
2022
Total tonnes stacked
329,944
368,114
1,407,249
1,679,805
Silver equivalent ounces sold
243,518
364,151
1,371,026
1,721,977
Adjusted AISC per silver equivalent ounce
2
$ 27.28
$ 19.30
$ 20.78
$ 18.36
Adjusted Cash cost per silver equivalent ounce
2
$ 19.72
$ 13.54
$ 15.01
$ 13.35
Realized silver price
$ 23.37
$ 17.78
$ 22.07
$ 20.94
1
Key performance indicators are unaudited non-GAAP measures, see reconciliation in MD&A.
2
Gold and copper are converted using average market prices.
This news release should be read in conjunction with the consolidated financial statements for the year ended
September 30, 2023
, notes to the financial
statements, and management's discussion and analysis for the year ended
September 30, 2023
, which have been filed on SEDAR and are available on the
Company's website. The Company's annual information form has also been filed and is available on SEDAR and 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,
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. 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. "Adjusted cash costs per ounce" and
"Adjusted all-in sustaining costs per ounce" are used in this analysis and 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, "Adjusted 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. "Adjusted 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. "Adjusted 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
December 18, 2023
for the year ended
September 30, 2023
, as presented on SEDAR.
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For further information:
Steve Low, Corporate Development, GoGold Resources Inc., T: 416 855 0435, Email : [email protected], Or visit :
www.gogoldresources.com
CO: GoGold Resources Inc.
CNW 09:00e 19-DEC-23