GoGold Reports an 83% Increase in Revenue to $7.0 Million for the Quarter ended
GoGold Reports an 83% Increase in Revenue
to $7.0 Million for the Quarter ended March 31,
2019
Trading Symbol: TSX: GGD
Shares Outstanding: 171,776,481
HALIFAX
,
May 8, 2019
/CNW/ -
GoGold Resources Inc. (TSX: GGD) ("GoGold", "the
Company")
reports an 83% increase in revenue to
$7.0 million
over the previous quarter and a net
income of
$2.4 million
for the three months ended
March 31, 2019
. The Corporation closed the
quarter in a strong financial position with
$16.0 million
in cash and marketable securities. (All
amounts are in U.S. dollars).
The Corporation maintains a strong balance sheet and no debt. During the quarter ended
March 31,
2019
the Companies marketable securities in Metalla Royalty and Streaming Limited increased in
value by
$3.7 million
. The Corporation is in a strong financial position and has the cash to explore the
newly acquired Los Ricos project. The Company has budgeted
$4.0 million
on exploration for the
remainder of calendar 2019 to complete a total of 10,000 meters of drilling.
"The drill results to date at Los Ricos have been some of the best in my career," stated
Brad
Langille
, President and CEO. "The high grades and wide zones identified thus far are less than
150m
from surface. Our team has reviewed thousands of historical documents dating back 100 years
which has allowed us to develop high probability targets for drilling."
Production increased each month during the quarter for a total of 424,210 silver equivalent ounces
that generated revenue of
$7.0 million
on the sale of 475,921 silver equivalent ounces at an average
realized price of
$14.77
, and at an adjusted cash cost of
$10.11
. The Company sold more than
produced due to a shipment in transit at the end of the previous quarter. The difference between
produced and sold will be much less in future quarters.
During the quarter ended
March 31, 2019
the Company stacked 478,874 tons of ore, which is an
increase of 35% over the previous quarter, representing 640,000 recoverable silver equivalent
ounces. Stacking rates are expected to increase further for the quarter ended
June 30, 2019
.
Production continues to be strong and the Company expects another strong quarter of production
growth.
"Production at Parral continues to improve and the team has done an excellent job increasing tons
stacked on the heap leach pad which will lead to continued improvements in production," stated
Langille.
Summarized Consolidated Financial Information
Three months ended
March 31
Six months ended
March 31
(in thousands USD, except per share amounts)
2019
2018
2019
2018
Revenue
$
7,030
$
5,403
$
10,881
$
11,235
Production costs, except amortization and depletion
4,812
3,605
8,153
6,674
Mine site EBITDA
1
1,861
1,798
1,239
3,017
Net income (loss)
2,437
(41)
10,591
28,454
Basic net earnings per share
0.02
(0.00)
0.06
0.17
1
Earnings before interest, taxes, depreciation and amortization
Key Performance Indicators
1
Three months ended
March 31
Six months ended
March 31
2019
2018
2019
2018
Total tonnes stacked
478,874
439,376
834,487
801,310
Silver equivalent production
2
424,210
417,191
749,358
809,597
Adjusted AISC per silver equivalent ounce
2,4
$
13.61
$
15.97
$
14.76
$
15.31
Adjusted Cash cost per silver equivalent ounce
2,4
$
10.11
$
10.67
$
10.91
$
10.94
Adjusted Cash cost per silver ounce
3,4
$
7.39
$
7.47
$
8.19
$
7.69
Realized silver price
$
14.77
$
15.99
$
14.56
$
15.95
1
Key performance indicators are unaudited non-GAAP measures
2
Gold is converted using actual realized prices
3
Using Gold as a by-product credit
4
Adjusted for net realizable value adjustment, see reconciliation in MD&A
This news release should be read in conjunction with the condensed consolidated interim financial
statements for the three and six months ended
March 31, 2019
, notes to the financial statements,
and management's discussion and analysis for the three and six months ended
March 31, 2019
,
which have been filed on SEDAR and are available on the Company's website.
Mr.
Robert Harris
, P.Eng. is the qualified person as defined by National Instrument 43-101 and is
responsible for the technical information of this release.
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's Parral
Tailings project produces silver and gold at a low cash cost. 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 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 8, 2019
, for the three and six months ended
March 31, 2019
as presented
on SEDAR.
SOURCE
GoGold Resources Inc.
View original content:
http://www.newswire.ca/en/releases/archive/May2019/08/c1347.html
%SEDAR: 00029249E
For further information:
Steve Low, Corporate Development, GoGold Resources, T: 416 855
0435, E: [email protected]
CO: GoGold Resources Inc.
CNW 16:30e 08-MAY-19