GoGold Reports Total Comprehensive Income of USD $42.9 Million
GoGold Reports Total Comprehensive Income of USD $42.9
Million
Trading Symbol: TSX: GGD
Shares Outstanding: 171,376,481
HALIFAX
,
Feb. 14, 2018
/CNW/ -
GoGold Resources Inc. (TSX: GGD) ("GoGold", "the Company")
reports total comprehensive
income of
$42.9 million
and net income of
$30.0 million
for the three months ended
December 31, 2017
. The Corporation structured the sale of
Santa Gertrudis to utilize existing tax loss carryforwards and expects to pay no corporate income tax associated with the transaction. With the
gross proceeds from the transaction of
$80 million
before a retained 2% net smelter royalty, the Corporation's net working capital position
improved to
$44.3 million
from a deficiency at
September 30, 2017
of
$10.4 million
. (All amounts are in U.S. dollars).
Parral generated revenue of
$5.8 million
on the sale of 366,374 silver equivalent ounces at an average realized price of
$15.92
. This marks the
fifth consecutive quarter that revenue has increased at the Parral project. Cash costs in the current quarter were
$11.69
per silver equivalent
ounce, costs have increased due to the reprocessing of tailings which will be completed in the quarter ending
March 31, 2018
, after which costs
are expected to decrease. During the quarter, the Company stacked 361,934 tonnes, which were all reprocessed tailings.
The Corporation closed the sale of Santa Gertrudis on
November 2, 2017
to Agnico Eagle Mines Limited for cash consideration, net of
transaction costs, of
$76.8 million
, which resulted in a pre-tax gain, after deducting the net carrying value of the Santa Gertrudis assets, of
$54.3
million
on the project which was initially acquired in 2014. The Corporation retained a 2% net smelter royalty on the Santa Gertrudis property, for
which no value has been ascribed in the transaction.
"The Company now has a strong balance sheet with no debt, production growth with lowering costs, and is well positioned to strengthen and
advance its business." said
Brad Langille
, CEO.
SART:
Commissioning on the SART (sulfidization, acidification, recycling, and thickening) plant at Parral is proceeding as scheduled. The plant will
reduce cyanide consumption and generate a saleable copper sulfide product, and is expected to contribute cost savings and copper production in
the current quarter.
Summarized Consolidated Financial Information
Three months ended
December 31
(in thousands USD, except per share amounts)
2017
2016
1
Revenue
$
5,832
$
3,674
Production costs, except amortization and depletion
4,284
1,937
Net loss from continuing operations
(1,663)
(932)
Net income
30,035
662
Total comprehensive income
42,907
329
Basic net earnings per share
0.18
0.00
1
Adjusted for discontinued operations associated with the sale of Santa Gertrudis.
Key Performance Indicators
1
Three months ended
December 31
2017
2016
Total tonnes stacked
361,934
233,699
AISC per silver equivalent ounce
2
$
15.25
$
9.06
Cash cost per silver ounce
3,4
$
8.73
$
(0.62)
Cash cost per silver equivalent ounce
2
$
11.69
$
8.61
Realized silver price
$
15.92
$
16.33
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
Late in 2017 the Company purchased a new stacker which has resulted in stacking rates for January improving by 23% over the last quarter to
4,843 per day in January. The stacking rates are expected to continue to improve throughout the remainder of 2018.
This news release should be read in conjunction with the condensed consolidated interim financial statements for the three months ended
December 31, 2017
, notes to the financial statements, and management's discussion and analysis for the three months ended
December 31, 2017
,
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 12, 2018
, for the three months ended
December 31, 2017
, as presented on SEDAR.
SOURCE
GoGold Resources Inc.
View original content: http://www.newswire.ca/en/releases/archive/February2018/14/c1038.html
%SEDAR: 00029249E
For further information:
Steve Low, Corporate Development, GoGold Resources, T: 416 855 0435, E: [email protected]
CO: GoGold Resources Inc.
CNW 09:00e 14-FEB-18