GoGold Reports Financial Results for the
GoGold Reports Financial Results for the
Quarter ended June 30, 2019 and Provides Los
Ricos Update
Trading Symbol: TSX: GGD
Shares Outstanding: 171,901,481
HALIFAX
,
Aug. 8, 2019
/CNW/ -
GoGold Resources Inc. (TSX: GGD) ("GoGold", "the
Company")
reports revenue of
$6.4 million
on the sale of 438,740 silver equivalent ounces sold at
an average realized price of
$14.55
. The Corporation closed the quarter in a strong financial
position with
$9.0 million
in cash and marketable securities and no debt. (All amounts are in U.S.
dollars).
Production in the quarter was a record 451,011 silver equivalent ounces, the second consecutive
quarter that Parral has set a production record. Parral generated EBITDA of
$1,681,000
in the
quarter, compared to a loss of
$59,000
in the quarter ended
June 30, 2018
.
"Parral continues to perform well, with another record production quarter completed, and we're
seeing strong results thus far in July and August," stated
Brad Langille
, President and CEO.
"Leaching on the second lift is providing strong results, which is demonstrated by production growth
and the increase in EBITDA from a year ago, with strong all-in costs of
$13.61
in the quarter and
$14.26
for the year to date. The SART project is on track, and once this is in operation in early
2020, we anticipate significant cost savings and cash inflows from liberated cyanide and copper that
is currently in solution."
During the quarter, the Company recorded a decrease in the value of marketable securities of
$2.2
million
, which is the largest contribution to the net loss of
$3.2 million
on the quarter. For the year
to date, the Company has recorded an increase in the value of marketable securities of
$2.0 million
.
The value of marketable securities has increased since quarter end by 14% as of the date of this
press release.
Los Ricos
The Company is carrying out a
10,000m
diamond drilling program of HQ size core in conjunction with
a field program of geological mapping, sampling and trenching on the property. The program has
focused on testing the top 200 metres of the mineralized zone to determine the potential for surface
mining. This work includes "twinning" selected historical RC drill holes; completing new holes on
25m
spaced "infill" sections; completing new deeper holes down dip beneath the historical RC drill holes;
testing the strike extension of the deposit to the north of the underground workings; and stepping out
1500 metres to the south where the Company had success at initial greenfield exploration trenching.
"The drilling program at Los Ricos is providing very strong results and is intersecting substantial
widths and grades of gold and silver. The option agreement on the project has allowed the
Company to more fully understand the potential of this asset," said Langille. "We see Los Ricos
being a core asset and significant driver of value for GoGold."
As of
June 30, 2019
, the Company has spent
$1.2 million
on exploration and the acquisition of the
option agreement of the Los Ricos project. Currently, 44 holes totalling
5,914m
of HQ size drill core
have been completed, with assayed results received and reported for 26 drill holes. The table
below shows some highlights of the drill results to date, see Appendix A for the full results of
GoGold's drilling to date.
Hole ID
From
To
Length
1
Au
Ag
AuEq
2
(m)
(m)
(m)
(g/t)
(g/t)
(g/t)
LRGG-19-001
3
71.0
106.5
35.5
1.24
284.7
5.04
LRGG-19-003
4
145.0
165.4
20.4
2.21
318.7
6.45
LRGG-19-008
5
109.4
131.7
22.4
4.13
182.1
6.55
LRGG-19-009
6
34.5
55.7
21.2
7.66
1270.2
24.60
LRGG-19-022
7
170.4
193.7
23.3
1.78
201.5
4.47
1. Not true width
2. AuEq converted using a silver to gold ratio of 75:1
3. See press release dated April 17, 2019
4. See press release dated April 24, 2019
5. See press release dated May 1, 2019
6. See press release dated May 14, 2019
7. See press release dated July 31, 2019
Following is a summary of the consolidated financial information and key performance indicators for
the three and nine months ended
June 30, 2019
.
Summarized Consolidated Financial Information
Three months ended
June 30
Nine months ended
June 30
(in thousands USD, except per share amounts)
2019
2018
2019
2018
Revenue
$
6,383
$
6,289
$
17,264
$
17,524
Production costs, except amortization and depletion
4,702
3,936
12,855
14,236
Mine site EBITDA
1
1,681
(59)
2,920
3,288
Net income (loss)
(3,227)
(3,626)
7,364
26,370
Basic net earnings per share
(0.02)
(0.02)
0.04
0.15
1
Earnings before interest, taxes, depreciation and amortization
Key Performance Indicators
1
Three months ended
June 30
Nine months ended
June 30
2019
2018
2019
2018
Total tonnes stacked
519,643
447,193
1,354,130
1,248,503
Silver equivalent production
2
451,011
292,273
1,200,369
1,109,970
Adjusted AISC per silver equivalent ounce
2,4
$
13.61
$
14.09
$
14.26
$
15.58
Adjusted Cash cost per silver equivalent ounce
2,4
$
10.72
$
6.09
$
10.84
$
8.11
Adjusted Cash cost per silver ounce
3,4
$
7.87
$
10.30
$
8.08
$
11.20
Realized silver price
$
14.55
$
16.46
$
14.56
$
16.13
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 nine months ended
June 30, 2019
, notes to the financial statements,
and management's discussion and analysis for the three and nine months ended
June 30, 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 related to Parral. Mr.
David Duncan
, P.
Geo. is the qualified person as defined by National Instrument 43-101 and is responsible for the
technical information of this release related to Los Ricos and drilling results.
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
.
Appendix A – GoGold Drill Holes
Hole ID
Comment
From
To
Length
1
Au
Ag
AuEq
2
(m)
(m)
(m)
(g/t)
(g/t)
(g/t)
LRGG-19-001
Main
71.0
106.5
35.5
1.24
284.7
5.04
HW zone
71.0
81.0
10.0
1.27
249.1
4.59
Open Stope
3
81.0
82.5
1.5
*
*
*
FW zone
82.5
106.5
24.0
1.31
317.3
5.54
including
91.5
98.0
6.5
3.32
905.8
15.39
LRGG-19-002
Main
26.5
54.1
27.6
1.56
159.0
3.68
including
28.4
34.0
5.6
5.52
525.0
12.52
LRGG-19-003
Main
145.0
165.4
20.4
2.21
318.7
6.45
including
145.0
155.5
10.5
4.26
608.0
12.36
including
146.0
153.2
7.2
6.17
869.5
17.77
LRGG-19-004
Main
96.5
99.0
2.5
0.04
27.2
0.40
LRGG-19-005
Main
121.0
131.8
10.8
0.19
53.8
0.91
LRGG-19-006
Main
107.1
132.0
25.0
0.33
35.7
0.81
including
119.7
122.5
2.8
1.41
52.6
2.11
LRGG-19-007
Main
149.5
161.2
11.7
0.68
88.8
1.87
including
163.0
169.1
6.1
0.58
141.9
2.47
LRGG-19-008
Main
109.4
131.7
22.4
4.13
182.1
6.55
including
127.5
130.5
3.0
25.08
533.9
32.20
and
134.7
147.6
12.9
0.17
31.5
0.59
LRGG-19-009
Main
34.5
55.7
21.2
7.66
1270.2
24.60
including
37.8
44.7
6.9
21.97
3717.6
71.54
LRGG-19-010
Open Stope
3
97.5
99.0
1.5
-
-
-
Main
99.0
117.8
18.8
0.37
67.9
1.27
including
102.2
106.7
4.5
0.96
119.5
2.55
LRGG-19-011
Main
253.0
271.5
18.5
1.20
140.3
3.07
including
261.8
270.3
8.4
2.16
227.8
5.19
LRGG-19-012
Main
220.3
238.0
17.8
0.59
82.7
1.69
including
224.5
238.0
13.5
0.77
100.4
2.11
including
228.5
235.5
7.0
1.16
131.9
2.92
LRGG-19-013
Main
163.9
179.5
15.6
0.78
194.7
3.38
including
166.0
174.8
8.8
1.30
296.5
5.25
including
166.0
168.2
2.2
2.09
331.7
6.52
LRGG-19-014
Main
204.3
218.5
14.2
1.10
126.8
2.79
including
208.3
216.0
7.7
1.94
209.3
4.73
and
224.5
228.0
3.5
0.16
26.5
0.51
LRGG-19-015
Main
23.4
40.5
17.1
0.71
67.9
1.62
including
27.0
32.6
5.6
1.68
137.2
3.51
Open Stope
3
40.5
43.7
3.2
*
*
*
Main
43.7
54.0
10.3
1.19
85.0
2.33
including
43.7
49.0
5.3
2.02
138.1
3.87
LRGG-19-016
Main
80.8
85.8
5.0
0.52
160.6
2.66
Open Stope
3
85.8
88.3
2.5
*
*
*
including
91.7
98.1
6.3
2.14
336.7
6.63
LRGG-19-017
Main
83.2
115.2
32.0
0.80
178.8
3.18
including
83.2
94.5
11.3
1.46
347.8
6.10
LRGG-19-018
Main
258.5
279.9
21.4
0.81
170.1
3.08
including
263.2
276.0
12.9
1.24
262.4
4.74
including
268.5
276.0
7.5
1.78
342.4
6.35
LRGG-19-019
Main
23.0
27.5
4.5
1.50
196.6
4.13
Open Stope
3
27.5
29.7
2.2
*
*
*
Main
29.7
43.5
13.8
0.63
86.0
1.78
including
29.7
33.9
4.2
1.52
198.3
4.17
LRGG-19-020
Main
43.8
58.7
14.9
1.78
106.4
3.20
including
45.0
52.0
7.0
3.48
155.6
5.55
LRGG-19-021
Main
9.0
16.5
7.5
0.09
18.1
0.33
Open Stope
3
16.5
22.5
6.0
*
*
*
Main
22.5
38.1
15.6
1.15
113.5
2.67
including
22.5
29.0
6.5
2.38
236.5
5.54
LRGG-19-022
Main
170.4
193.7
23.3
1.78
201.5
4.47
including
171.5
181.5
10.0
3.58
389.6
8.78
LRGG-19-023
Main
34.0
58.0
24.0
0.61
126.0
2.29
including
34.0
48.7
14.7
0.93
200.8
3.61
LRGG-19-024
Main
25.0
30.0
5.0
0.36
30.8
0.77
LRGG-19-025
Main
34.9
59.5
24.6
1.30
135.0
3.10
including
34.9
50.4
15.5
2.00
203.3
4.71
LRGG-19-026
Main
4.0
9.7
5.7
1.29
201.1
3.98
Open Stope
3
9.7
11.3
1.6
*
*
*
Main
11.3
29.5
18.2
0.16
34.5
0.62
1. Not true width
2. AuEq converted using a silver to gold ratio of 75:1
3. Voids from historical underground workings, no sample
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
August 7, 2019
, for the three and nine months ended
June 30, 2019
as
presented on SEDAR.
SOURCE
GoGold Resources Inc.
View original content:
http://www.newswire.ca/en/releases/archive/August2019/08/c8817.html
%SEDAR: 00029249E
For further information:
Steve Low, Corporate Development, GoGold Resources, T: 416 855
0435, E: [email protected]
CO: GoGold Resources Inc.
CNW 16:45e 08-AUG-19