Scorpio Gold Reports Financial Results for Second Quarter of 2017
TSX-V: SGN
1462 de la Quebecoise
Val-d’Or, QC, J9P 5H4
T: 604-678-9639
www.scorpiogold.com
News Release No. 245
Scorpio Gold Reports Financial Results for Second Quarter of 2017
Vancouver, August 29, 2017 - Scorpio Gold Corporation (“Scorpio Gold” or the “Company”) (TSX -V:
SGN) announce its financial results for the second quarter ended June 30, 201 7 (“Q2”). This press release
should be read in conjunction with the Company’s condensed interim consolidated financial statements
for Q2 and 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:
Q2 2017 Q2 2016 H1 2017 H1 2016
$ $ $ $
Revenue (000’s) 6,299 12,434 16,174 21,862
Mine operating earnings (000’s) 1,142 3,067 3,520 4,932
Net (loss) earnings (000’s) (285) 1,199 (245) 2,278
Basic and diluted (loss) earnings
per share (0.00) 0.01(2) (0.00) 0.01
Adjusted net earnings (1) (000’s) 464 2,183 1,925 3,299
Adjusted basic and diluted net
earnings per share(1) 0.00 0.01 0.01 0.02
Adjusted EBITDA(1) (000’s) 957 2,816 3,032 4,385
Adjusted basic and diluted
EBITDA per share(1) 0.00 0.02 0.02 0.02
Cash flow (used in) from operating
activities (000’s) (885) 4,878 2,574 4,512
Total cash cost per ounce of gold
sold(1) 968 879 911 844
Gold ounces sold 5,025 10,015 13,127 18,315
Gold ounces produced 4,660 10,089 10,401 18,597
Brian Lock, Interim CEO, comments, “The lower amount of gold ounces produced in Q2 2017 compared
to Q2 of 2016 is attributed to fewer tons being mined and processed from the existing pits, due to smaller
benches being mined in lower pit elevations. This si tuation affected the number of gold ounces sold and
revenues for Q2 of 2017. The net loss of $0.3million reported for Q2 of 2017 includes a $0.7 million
non-cash impairment charge recorded in that quarter.
“The net loss of $0.2 million reported for H1 of 2017 includes a $2.3 million non-cash impairment charge
recorded during the period.
(1) This is a non -IFRS measure; refer to Non -IFRS Measures section of this press release and the Company’s
Management Discussion & Analysis for Q2 of 2016 for a complete definition and reconciliation to the IFRS
results reported in the Company’s financial statements for Q2 of 2016.
(2) Please see Equity section of the MD&A.
“The Company's annual production forecast for 2017 is now currently expected to be at the low end of the
previous production guidance provided of 20,000 to 25,000 ounces of gold.
“Based on the Company’s updated mine plan, the Company currently anticipates mining of gold at
Mineral Ridge through October 2017, after which there will be residual but diminishing gold recoveries
from the leach pads. One of the initiatives un dertaken by the Company to address the going concern issue
is the engagement of three firms to complete a NI 43 -101 compliant Bankable Feasibility Study, ("BFS")
based on an internal economic assessment and the Mine Technical Services resource confirmation . The
BFS, when complete will provide the mill facility design and related economics for processing the leach
pad material. It is anticipated that the BFS will also provide the basis for the Company to raise the capital
required for the project. It is est imated that the BFS will be complete by mid September 2017. This is a
positive step towards unlocking the value of the Mineral Ridge property.”
HIGHLIGHTS FOR THE SECOND QUARTER (“Q2”) ENDED JUNE 30, 2017 AND
SUBSEQUENT EVENTS
• 4,660 ounces of gold were p roduced at the Mineral Ridge mine during Q 2 of 2017, compared to
10,089 ounces during Q2 of 2016.
• Revenue of $6.3 million, compared to $12.4 million during Q2 of 2016.
• Total cash cost per ounce of gold sold(1) of $968 compared to $879 during Q2 of 2016.
• Mine operating earnings of $1.1 million compared to $3.1 million during Q2 of 2016.
• Net loss of $0.3 million ($0.00 basic and diluted per share), compared to net earnings of $1.2
million ($0.01(2) basic and diluted per share) during Q2 of 2016.
• Adjusted n et earnings (1) of $0.5 million ($0.00 basic and diluted per share) compared to $2.2
million ($0.01 basic and diluted per share) for Q2 of 2016.
• Adjusted EBITDA(1) of $1.0 million ($0.00 basic and diluted per share) compared to $2.8 million
($0.02 basic and diluted per share) during Q2 of 2016.
• On July 12, the Company reported a measured and indicated mineral resource estimation of
121,700 ounces of gold contained on the heap leach pads at the Mineral Ridge Mine.
• In August, the Company announced the initiation of a bankable feasibility study with the
objective to support the proposed financing and construction of a mill facility at Mineral Ridge to
process the heap leach material and potentially mineralized material mined in the future.
HIGHLIGHTS FOR THE SIX MONTHS ENDED JUNE 30, 2017
• 10,401 ounces of gold were produced at the Mineral Ridge mine, compared to 18,597 ounces
produced during the six months ended June 30, 2016.
• Revenue of $16.2 million, compared to $21.9 million during the six months ended June 30, 2016.
• Total cash cost per ounce of gold sold (1) of $911, compared to $844 during the six months ended
June 30, 2016.
• Mine operating earnings of $3.5 million, compared to $4.9 million during the six months en ded
June 30, 2016.
(1) This is a non-IFRS measure; please see Non-IFRS performance measures section.
(2) Please see Equity section of the MD&A.
• Net loss of $0.2 million ($0.00 basic and diluted per share), compared to net earnings of $2.3
million ($0.01 basic and diluted per share) during the six months ended June 30, 2016.
• Adjusted net earnings (1) of $1.9 million ($0.01 basic and diluted per share), compared to $3.3
million ($0.02 basic and diluted per share) during the six months ended June 30, 2016.
• Adjusted EBITDA(1) of $3.0 million ($0.02 basic and diluted per share), compared to $4.4 million
($0.02 basic and diluted per share) million during the six months ended June 30, 2016.
(1) This is a non -IFRS measure; refer to Non -IFRS Measures section of this press release and the Company’s
Management Discussion & Analysis for Q2 of 201 6 for a complete definition and reconciliation to the IFRS results
reported in the Company’s financial statements for Q2 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 and Adjusted Net Earnings, 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 six mo nths ended June 30, 201 7 for
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 producing Mi neral 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 Mineral Ridge property is host to multiple
gold-bearing structures, veins and lenses at exploration, development and production stages. Scorpio Gold
also holds a 100% interest in the advanced exploration -stage Goldwedge property in Manhattan, Nevada
with a fully permitted underground mine and 400 ton per day mill fac ility. The Goldwedge mill facility
has been placed on a care and maintenance basis and can be restarted immediately when needed.
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 TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this release.
The Company relies on litigation protection for "forward -looking" statements. This 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”, “indica te”
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 production at Mineral Ridge, the exploration, development and
exploitation of its Mineral Ridge project, including 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 f orward-looking
statements, including risks relating to the operation of a gold mine, including unanticipated changes in the mineral content of
materials being mined; unanticipated changes in recovery rates; the short life of mine at Mineral Ridge; the prep aration of the
BFS; the raising of financing to facilitate capital expenditures for a mill facility at Mineral Ridge; changes in project parameters;
failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; availability of skilled
labour and the impact of labour disputes; delays in obtaining governmental approvals; changes in metals prices; the availability of
cash flows or financing to meet the Company’s ongoing financial obligations; unanticipated changes i n key management
personnel; changes in general economic conditions; obtaining the required permits to expand and extend mining activities and
other risks of the mining industry and those risk factors outlined in the Company’s Management Discussion and Anal ysis 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 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.