Scorpio Gold Reports Financial Results for First Quarter of 2017
TSX-V: SGN
1462 de la Quebecoise
Val-d’Or, QC, J9P 5H4
T: 819- 825-7618
www.scorpiogold.com
News Release No. 240
Scorpio Gold Reports Financial Results for First Quarter of 2017
Vancouver, May 30, 2017 - Scorpio Gold Corporation (“Scorpio Gold” or the “Company”) (TSX-V: SGN)
is pleased to announce its financial results for the first quarter ended March 31, 2017 (“Q1”). This press
release should be read in conjunction with the Co mpany’s condensed interim consolidated financial
statements for the three-month period ended Marc h 31, 2017 and its related Management Discussion &
Analysis for the same period, available on the Company’s website at www.scorpiogold.com and under the
Company’s name on SEDAR at www.sedar.com. All monetary amounts are expressed in US dollars unless
otherwise specified.
PERFORMANCE HIGHLIGHTS:
Q1 2017 Q1 2016 % Change
$ $
Revenue ($000’s) 9,875 9,428 4.7%
Mine operating earnings ($000’s) 2,378 1,865 27.5%
Net earnings ($000’s) 40 1,079 -96.3%
Basic and diluted (loss) earnings per
share (0.00) 0.01(2)
-100%
Adjusted net earnings(1) ($000’s) 1,461 1,116 30.9%
Adjusted basic and diluted net earnings
per share(1) 0.01 0.01(2)
-
Adjusted EBITDA(1) ($000’s) 2,075 1,569 32.2%
Adjusted basic and diluted EBITDA
per share(1) 0.01 0.01
-
Cash flow from (used by) operating
activities ($000’s) 3,449 (366)
1042.3%
Total cash cost per ounce of gold sold(1) 876 801 9.4%
Gold ounces produced 5,741 8,508 -32.5%
Gold ounces sold 8,102 8,300 -2.4%
Brian Lock, CEO, comments, "Despite lower production in Q1 of 2017 compared to Q1 of 2016, operating
cash flows increased significantly from Q1 2016. Even though the Company sold slightly fewer ounces in
Q1 of 2017 compared to Q1 of 2016, a decrease in gold inventories and higher average realized prices,
compared with Q1 last year, were primary factors in the increase in operating cash flow.
(1) This is a non-IFRS measure; refer to Non-IFRS Measures section of th is press release and the Company’s
Management Discussion & Analysis for Q1 of 2016 for a complete definition and reconciliation to the IFRS results
reported in the Company’s financial statements for Q1 of 2016.
(2) This number was adjusted following a change in the cal culation of the non-controlling interest’s share of MRG’s
net income (loss). See the section of the MD&A entitled “Equity” for a description of the resulting changes.
Scorpio Gold Corporation | 2
Based on the Company’s updated mine plan, the Company currently anticipates mining of gold at Mineral
Ridge through August 2017. Due to permitting timelin es, the Company anticipat es production of gold at
Mineral Ridge to be 20 – 25,000 ounces through to August 2017 from the Mary LC, Brodie and Bluelite
south pits. The Custer pit and other areas for which permitting is outstanding, are not included in this
production estimate and will be evaluated for economi cs of associated mining timelines when permits are
received. There can be no assurances that, when the permits are received, production on the Custer Pit and
other areas will commence if it is not economically viab le to do so. Total cash costs are expected to be
$1,050 -$1,100 per ounce of gold sold. This increase in costs is due to the projected lower production level
in 2017 while fixed costs remain relatively constant . The 2017 mine plan calls for an average daily
production rate of 11,500 tonnes which includes an average of 1,798 tonnes of ore delivered to the crusher
on a daily basis over the 226 scheduled mining days. The decreased metal production in Q1 of 2017 is
attributed to reduced mining rates, somewhat offset by higher grade and favorable leach pad recoveries.
Proposed exploration activities for 2017, which are dependent on the Company’s finances, are intended to
include geological mapping, geophysical surveying, sampling and drilling activities at Mineral Ridge’s
Drinkwater pit, North Springs, Tarantula and Eagle Canyon areas, as well as at the Orleans and the
Goldwedge properties. Also included in the proposed exploration activ ities is an evaluation of potential
unrecovered mineralization of the Mineral Ridge leach pad with a view to initiating a feasibility study for
building a mill facility to recover additional gold mineralization.
Given the Company’s short remaining life of mine, it is taking initiatives as set out above to extend the life
of mine at Mineral Ridge. The Company is also cu rrently evaluating various business alternatives which
involve re-financing its long-term debt which matures in August 2018 and/or raising additional financing
through an equity financing or other types of financing.”
Highlights for the First Quarter Ended March 31, 2017:
• 5,741 ounces of gold were produced at the Minera l Ridge mine during Q1 of 2017, compared to
8,508 ounces during Q1 of 2016.
• Revenue of $9.9 million, compared to $9.4 million during Q1 of 2016.
• Total cash cost per ounce of gold sold(1) of $876 compared to $801 during Q1 of 2016.
• Mine operating earnings of $2.4 million compared to $1.9 million during Q1 of 2016.
• Net earnings of close to nil ($0.00 basic and d iluted per share), compared to $1.1 million ($0.01 (2)
basic and diluted per share) during Q1 of 2016.
• Adjusted net earnings(1) of $1.5 million ($0.01 basic and diluted per share) compared to $1.1 million
($0.01(2) basic and diluted per share) during Q1 of 2016.
• Adjusted EBITDA(1) of $2.1 million ($0.01 basic and diluted per share) compared to $1.6 million
($0.01 basic and diluted per share) during Q1 of 2016.
Non-IFRS Measures
The discussion of financial results in this press release includes reference to Adjusted EBITDA, Total cash
cost per ounce of gold sold an d Adjusted Net Earnings, which ar e non-IFRS measures. The Company
provides these measures as additional information regarding the Company's financial results and
performance. Please refer to the Company's MD&A for the three months e nded March 31, 2017 for
(1) This is a non-IFRS measure; please see Non-IFRS performance measures section.
(2) This number was adjusted following a change in the calculation of the non-controlling interest’s share of MRG’s
net income (loss). See the section of the MD&A entitled “Equity” for a description of the resulting changes.
Scorpio Gold Corporation | 3
definitions of these terms and a reconciliation of these measures to reported International Financial
Reporting Standards (“IFRS”) results.
About Scorpio Gold Corporation
Scorpio Gold holds a 70% interest in the produc ing Mineral Ridge gold mining operation located in
Esmeralda County, Nevada with joint venture partner Elevon, LLC (30%). Mineral Ridge is a conventional
open pit mining and heap leach operation. The Minera l Ridge property is host to multiple gold-bearing
structures, veins and lenses at exploration, developm ent and production stages. Sc orpio Gold also holds a
100% interest in the advanced exploration-stage Gold wedge property in Manhattan, Nevada with a fully
permitted underground mine and 400 ton per day mill facility. The Goldwedge mill facility has been placed
on a care and maintenance basis and can be restarted on short notice.
Scorpio Gold’s Chairman, Peter J. Hawley, P.Geo., is a Qualified Person as defined in National Instrument
43-101 and has reviewed and approved the content of this release.
ON BEHALF OF THE BOARD
SCORPIO GOLD CORPORATION
Brian Lock,
Interim CEO
For further information contact:
Chris Zerga, President
Tel: (819) 825-7618
Email: [email protected]
Investor Relations
Jag Sandhu, JNS Capital Corp.
Tel: 778-218-9638
Email: [email protected]
Website: www.scorpiogold.com
Neither TSX Venture Exchange nor its Regula tion Services Provider (as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this release.
The Company relies on litigation protection for "forward-looking" statements. Th is news release contains forward-looking
statements that are based on the Company’s current expectations and estimates. Forward-looking statements are frequently
characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “suggest”, “indicate” and
other similar words or statements that certain events or conditions “may” or “will” occur, and include, without limitation, statements
regarding the Company’s plans with respect to the exploration, development and exploitation of its Mineral Ridge project, including
the short life of the Mineral Ridge mine, the Company receiving approval of its pending permitti ng applications any forecasts
regarding future production or costs related thereto. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or
results implied or expressed in such forward-looking statemen ts, including risks relating to operation of a gold mine, includin g
unanticipated changes in the mineral content of materials being mined; unanticipated changes in recovery rates; changes in project
parameters; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; availabi lity of
skilled labour and the impact of labour disputes; delays in obt aining governmental approvals; changes in metals prices; the
availability of cash flows or financing to meet the Company’s ongoing financial obligations; the ability of the Company to refinance
its long–term debt; unantic ipated changes in key management personnel; cha nges in general economic conditions; obtaining the
required permits to expand and extend mi ning activities and the life of mine; other risks of the mining industry and those risk
factors outlined in the Company’s Manageme nt Discussion and Analysis as filed on SEDAR. Any forward-looking statement
speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims
any intent or obligation to update any forwar d-looking statement, whether as a result of new information, future events or resu lts
or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be
put on such statements due to the inherent uncertainty thereof.