GoGold Reports Financial Results for Quarter
GoGold Reports Financial Results for Quarter
Ending December 31, 2019
Shares Outstanding: 186,148,461
Trading Symbols: TSX: GGD
OTCQX: GLGDF
HALIFAX
,
Feb. 3, 2020
/CNW/ -
GoGold Resources Inc. (TSX: GGD) (OTCQX: GLGDF)
("GoGold", "the Company")
is pleased to announce the release of financial results for the quarter
ending
December 31, 2019
with revenue of
$9.3 million
(all amounts are in U.S. dollars) from the
sale of 555,298 silver equivalent ounces and net income of
$535,000
.
"Parral generated
$2.3 million
of cash flow at site, and the Company after general and administrative
and working capital changes generated
$789,000
from operations. Parral had another record
production quarter and compared to a year ago revenue has more than doubled, driving the turn
around in cash flow from operations,"
Brad Langille
, President and CEO stated. "With
commissioning on the SART underway, we expect to soon realize the benefits of this optimization to
Parral's profitability."
Financial Highlights for the quarter ending
December 31, 2019
:
Revenue of
$9.3 million
, an increase of 241% from prior year
Record production of 584,988 silver equivalent ounces, an increase of 80% from prior year
Net income of
$535,000
Cash flow from operations of
$0.8 million
, including
$1.5 million
before changes in working
capital
Cash of
$5 million
, an increase from
$2.4 million
at
September 30, 2019
All in sustaining costs of
$14.59
per silver equivalent ounce
Cash costs of
$12.54
per silver equivalent ounce
Summarized Consolidated Financial Information
Three months ended December 31
(in thousands USD, except per share amounts)
2019
2018
Revenue
$
9,293
$
3,850
Cost of sales
$
8,110
$
5,437
Operating income (loss)
$
160
$
(2,724)
Net income
1
$
535
$
8,153
Basic net income (loss) per share
$
0.003
$
0.47
Cash flow from operations
$
789
$
(3,210)
Cash flow from operations, before changes in non-cash working capital
$
1,463
$
(341)
1
Net income in 2018 includes a gain of $11,837 on the sale of the Santa Gertrudis royalty
Key Performance Indicators
1
Three months ended December 31
(in thousands USD, except per ounce amounts)
2019
2018
Total tonnes stacked
331,279
355,613
AISC per silver equivalent ounce
2
$
14.59
$
20.25
Adjusted AISC per silver equivalent ounce
2,4
$
14.59
$
16.77
Cash cost per silver equivalent ounce
2
$
12.54
$
15.80
Adjusted cash cost per silver equivalent ounce
2,4
$
12.54
$
12.32
Realized silver price
$
16.75
$
14.20
1
Key performance indicators are unaudited non-GAAP
2
Gold is converted using actual realized prices
3
Using Gold as a by-product credit
4
Adjusted for net realizable value adjustment of $994 in quarter ending Dec 31, 2018, see reconciliation in MD&A
This news release should be read in conjunction with the interim condensed consolidated financial
statements for the quarter ended
December 31, 2019
, notes to the financial statements, and
management's discussion and analysis for the quarter ended
December 31, 2019
, which have been
filed on SEDAR and are available on the Company's website.
In addition, the Company filed an amended and restated annual information form on SEDAR as an
update to the annual information form dated
December 30, 2019
to, among other things, clarify that
the Company considers their Promotora tailings project to be a mineral project on a property that is
not material to the Company.
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.
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 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 ability to satisfy all conditions to funding of the second tranche under the credit
agreement. 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. "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 2, 2020
, for the quarter ended
December 31,
2019
, as presented on SEDAR.
SOURCE
GoGold Resources Inc.
View original content:
http://www.newswire.ca/en/releases/archive/February2020/03/c5425.html
%SEDAR: 00029249E
For further information:
Steve Low, Corporate Development, GoGold Resources Inc., T: 416 855
0435, Email : [email protected]
CO: GoGold Resources Inc.
CNW 08:30e 03-FEB-20