Scorpio Gold Reports Financial Results for First Quarter of 2019
TSX -V: SGN
506-595 Howe Stret
Vancouver, BC, V6C 2T5
T: (604) 678-9639
www.scorpiogold.com
News Release No. 273
Scorpio Gold Reports Financial Results for First Quarter of 2019
Vancouver, May 22, 2018 - Scorpio Gold Corporation (“Scorpio Gold” or the “Company”) (TSX-V: SGN)
announces its financial results for the first fiscal quarter (“Q1”) ended March 31, 2019. This press release
should be read in conjunction with the Company’s condensed interim consolidated financial statements for
the three-months ended March 31, 2019 and Management’s Discussio n & Analysis (“MD&A”) for the
same period, available on the Company’s website at www.s corpiogold.com and under the Company’s
SEDAR profile at www.sedar.com. All monetary amounts are expressed in US dollars unless otherwise
specified.
On April 15, 2019, the Company completed a 2 for 1 consolidation of its outstanding common shares. All
share and per share amounts are shown on a post-consoli dated basis retroactively throughout this news
release.
PERFORMANCE HIGHLIGHTS:
Q1 201 9 Q1 201 8
$ $
Revenue ($000’s) 1,486 3,026
Mine operating earnings ($000’s) 111 1,111
Net earnings ($000’s) 3,425 144
Basic and diluted earnings ( loss ) per share 0.0 5 (0.00)
Adjusted net earnings (1) ($000’s) 100 435
Adjusted basic and diluted net (loss) earnings per share (1) (0.00 ) 0.00
Adjusted EBITDA (1) ($000’s) 259 690
Adjusted basic and diluted EBITDA per share (1) 0.00 0.0 1
Cash flow (used for) from operating activities ($000’s) (205) 828
Total cash cost per ounce of gold sold (1) 1,129 832
Gold ounces produced 1,216 2,833
Gold ounces sold 1,211 2,300
(1) This is a non-IFRS measure; refer to the Non-IFRS M easures section of this press release and the Company’s
Management Discussion & Analysis for Q1 of 2019 for a compl ete definition and reconciliation to the IFRS results
reported in the Company’s financial statements for Q1 of 2019.
Scorpio Gold Corporation | 2
HIGHLIGHTS FOR THE FIRST QUARTER (“Q1”) ENDED MARCH 31, 2019 AND
SUBSEQUENT EVENTS
1,216 ounces of gold were produced at the Mineral Ridge mine, compared to 2,833 ounces
produced during Q1 of 2018.
Revenue of $1.5 million, compared to $3.0 million during Q1 of 2018.
Total cash cost per ounce of gold sold (1) of $1,129, compared to $832 during Q1 of 2018.
Mine operating earnings of $0.1 million, compared to $1.1 million during Q1 of 2018.
Net earnings of $3.4 million ($0.05 basic and diluted per sha re), compared to a net loss of $0.1
million ($0.00 basic and diluted per share) during Q1 of 2018.
Adjusted net earnings (1) of $0.1 million ($0.00 basic and diluted per share), compared to $0.4
million ($0.00 basic and diluted per share) during Q1 of 2018.
Adjusted EBITDA (1) of $0.3 million ($0.00 basic and diluted per share), compared to $0.7 million
($0.01 basic and diluted per share) million during Q1 of 2018.
Subsequent to March 31, 2019, the Company completed a $7 Million convertible debenture private
placement financing, and the Company used part of the p roceeds therefrom to extinguish certain
debts and buy back the remaining 30% interest in Mineral Ridge (Refer to “ Debenture Financing
and Waterton Buyout” in the Company’s Management discussion & Analysis for the period ended
March 31, 2019).
Outlook
The Company’s main focus is to raise sufficient funds through financings to improve its financial position
in order to proceed with the construction of a new proce ssing facility at Mineral Ridge with a view to
process heap leach materials and additional open-pit mineral reserves.
NON-IFRS MEASURES
The discussion of financial results in this press release includes reference to adjusted net earnings, adjusted
EBITDA and total cash cost per ounce of gold sold, each of which are 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-month period ended March 31, 2019 for
definitions of these terms and a reconciliation of these m easures to reported International Financial
Reporting Standards (“IFRS”) results.
About Scorpio Gold Corporation
Scorpio Gold holds a 100% interest in the Mineral Ridge gold mi ning operation located in Esmeralda
County, Nevada. Mineral Ridge is a conventional open pit mining and heap leach operation. Mining at
Mineral Ridge was suspended in November 2017; however, the Company c ontinues to generate limited
revenues from residual but diminishing recoveries from the le ach pads. Scorpio Gold also holds a 100%
interest in the advanced exploration-stage Goldwedge prope rty 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 immediately when needed.
Scorpio Gold Corporation | 3
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: (604) 678-9639
Email: [email protected]
Website: www.scorpiogold.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the T SX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this release.
The Company relies on litigation protection for "forwa rd-looking" statements. This news release contains forwar d-looking
statements that are based on the Company’s current expe ctations and estimates. Forward-looking statements are f requently
characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “suggest”, “indicate” and
other similar words or statements that certain events o r conditions “may” or “will” occur, and include, without lim itation,
statements regarding the Company’s plans to raise sufficient funds through financing transactions to improve its financial position,
construct a new processing facility at Mineral Ridge, re-commence mining operations, and plans with respect to the development
and exploitation of its Mineral Ridge mine. 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 statements, including risks relating to operation of a gold mine, including the availability of cash
flows or financing to meet the Company’s ongoing financial obligations; the inability of the Company to re-finance its long-term
debt obligations; 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 cont racted parties to
perform; availability of skilled labour and the impact of labour disputes; obtaining the required permits to expand and extend
mining activities; delays in obtaining governmental approvals; changes in metals prices; unanticipated changes in key management
personnel; changes in general economic conditions; other risks of the mining industry and those risk factors outlined in the
Company’s Management 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 forward-looking statement, whether as a result of new information, future events or results or otherwi se.
Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on s uch
statements due to the inherent uncertainty thereof.