GoGold Releases 2022 Q2 Financial Results
GoGold Releases 2022 Q2 Financial Results
Shares Outstanding: 295,258,056
Trading Symbols: TSX: GGD
OTCQX: GLGDF
HALIFAX, NS
,
May 11, 2022
/CNW/ -
GoGold Resources Inc.
(TSX: GGD) (OTCQX:
GLGDF)
("GoGold", "the Company")
is pleased to announce the financial results for the second
fiscal quarter of 2022, for the three months ended
March 31, 2022
where Parral generated
$10.3
million
in revenue (all amounts are in U.S. dollars) from the sale of 443,942 silver equivalent ounces.
"In the quarter, we continued to focus on our Los Ricos project as we continue to advance our second
100,000 metre drill program," said
Brad Langille
, President and CEO. "Parral continues to produce for
us, providing meaningful cash flow contributing to the general and administrative costs and the Los
Ricos exploration budget. The cash flow generated at Parral increased by over
$1 million
from the
December quarter as we completed the transition between tailings zones at the project."
During the quarter Parral generated free cash of
$4.4 million
before working capital changes. Silver
equivalent ounces sold increased by 11% compared to the December quarter end. Production is
lower compared to the prior year as the project transitioned to a different zone in the tailings deposit
which temporarily affected the leaching of pad kinetics. Stacking of recoverable ounces on the heap
leach pad exceeded production by 18%, which resulted in a cash investment of
$3.1 million
associated
with the increase in heap inventory. The Corporation is expected to benefit from production from these
stacked ounces in future quarters.
Highlights for the quarter ending
March 31, 2022
:
Revenue of
$10.3 million
on the sale of 443,942 silver equivalent ounces at a realized price per
ounce of
$23.28
per oz
Cash of
$83.3 million USD
Production of 455,991 silver equivalent ounces, consisting of 186,655 silver ounces, 2,791 gold
ounces, and 125 copper tonnes
Completed bought deal financing for net proceeds of
$33.4 million
on the sale of 16.1 million
common shares at a price of
$2.85
CAD per share
At Los Ricos, the Company drilled 21,052 metres on the projects for the quarter ended
March 31,
2022
compared to 22,045 metres in the quarter ending
March 31
, 2021. The Company capitalized
$6.1 million
to the projects for drilling, exploration and consulting for the quarter ended
March 31,
2022
, compared to
$5.6 million
in the prior year. This included
$4.0 million
at Los Ricos North and
$2.1
million
at Los Ricos South. The Corporation is 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 Mar 31
Six months ended Mar 31
(in thousands USD, except per share amounts)
2022
2021
2022
2021
Revenue
$ 10,334
$ 13,232
$ 19,189
$ 27,309
Cost of sales, including depreciation
6,987
8,027
13,440
16,436
Operating income
1,305
3,409
1,880
7,427
Net (loss) income
(1,618)
2,732
(1,492)
6,968
Basic net (loss) income per share
(0.004)
0.010
(0.005)
0.026
Cash flow from operations
(1,694)
3,269
(6,277)
9,132
Key Performance Indicators
1
Three months ended Mar 31
Six months ended Mar 31
(in thousands USD, except per ounce amounts)
2022
2021
2022
2021
Total tonnes stacked
377,874
417,487
951,231
867,313
Recoverable silver equivalent ounces stacked
537,000
513,000
1,238,000
1,165,000
Silver equivalent ounces sold
443,942
546,979
845,156
1,143,159
AISC per silver equivalent ounce
2
$ 18.12
$ 16.27
$ 18.34
$ 15.70
Cash cost per silver equivalent ounce
2
$ 13.24
$ 12.81
$ 13.37
$ 12.53
Realized silver price
$ 23.28
$ 24.19
$ 22.70
$ 23.89
Metres drilled
21,052
22,045
40,916
37,247
1
Key performance indicators are unaudited non-GAAP measures.
2
Gold 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 six months ended
March 31, 2022
, notes to the financial statements, and
management's discussion and analysis for the quarter ended
March 31, 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
February
8, 2022
for the quarter ended
December 31, 2021
, as presented on SEDAR.
View original content:
https://www.prnewswire.com/news-releases/gogold-releases-2022-q2-financial-results-301545020.html
SOURCE
GoGold Resources Inc.
View original content:
http://www.newswire.ca/en/releases/archive/May2022/11/c7941.html
%SEDAR: 00029249E
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 08:30e 11-MAY-22