GoGold Reports Quarterly Net Income of USD $8.2 Million
GoGold Reports Quarterly Net Income of USD
$8.2 Million
Trading Symbol:TSX: GGD
Shares Outstanding: 171,776,481
HALIFAX
,
Feb. 8, 2019
/CNW/ -
GoGold Resources Inc. (TSX: GGD) ("GoGold", "the
Company")
reports net income of
$8.2 million
for the three months ended
December 31, 2018
. The
Corporation closed the previously announced sale of the 2% net smelter royalty which resulted in net
proceeds and an equivalent pre-tax gain of
$11.8 million
. (All amounts are in U.S. dollars).
The closing of the sale of the royalty concludes the Corporation's involvement with the Santa
Gertrudis project which was initially acquired in 2014. Net consideration on the sale of assets
associated with the Santa Gertrudis project was
$88.6 million
, less costs of
$24.5 million
resulting in
a pre-tax gain of
$64.1 million
over the life of the project.
Production increased each month during the quarter for a total of 325,148 silver equivalent ounces
that generated revenue of
$3.9 million
on the sale of 271,211 silver equivalent ounces at an average
realized price of
$14.20
, and at an adjusted cash cost of
$12.32
. The large difference between
produced and sold is because a significant amount of the December production was in transit at
December 31
and will be sold during the quarter ended
March 31, 2019
. The difference between
produced and sold will be much less in future quarters. Production continues to be strong and the
Company expects another strong quarter of production growth.
The Corporation maintains a strong balance sheet with a strong cash position and no debt. The
Corporation is in a strong financial position and is seeking opportunities to be a consolidator of
undervalued mining properties in
Mexico
.
Summarized Consolidated Financial Information
Three months ended
December 31
(in thousands USD, except per share amounts)
2018
2017
Revenue
$
3,850
$
5,832
Production costs, except amortization and depletion
3,342
3,070
Mine site EBITDA
1
(436)
1,548
Net income
8,153
28,494
Basic net earnings per share
0.05
0.18
1
Earnings before interest, taxes, depreciation and amortization
Key Performance Indicators
1
Three months ended
December 31
2018
2017
Total tonnes stacked
355,613
361,934
Silver equivalent production
2
325,148
392,406
Adjusted AISC per silver equivalent ounce
2
$
16.77
$
14.74
Adjusted Cash cost per silver equivalent ounce
2
$
12.32
$
11.18
Adjusted Cash cost per silver ounce
3,4
$
10.09
$
7.90
Realized silver price
$
15.92
$
15.92
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 months ended
December 31, 2018
, notes to the financial statements, and
management's discussion and analysis for the three months ended
December 31, 2018
, 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, 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
February 6, 2019
, for the three months ended
December 31, 2018
, as
presented on SEDAR.
SOURCE
GoGold Resources Inc.
View original content:
http://www.newswire.ca/en/releases/archive/February2019/08/c2453.html
%SEDAR: 00029249E
For further information:
Steve Low, Corporate Development, GoGold Resources, T: 416 855
0435, E: [email protected]
CO: GoGold Resources Inc.
CNW 09:20e 08-FEB-19