Scorpio Gold Reports Financial Results for Third Quarter of 2017
TSX -V: SGN
1462 de la Quebecoise
Val-d’Or, QC, J9P 5H4
T: 819- 825-7618
www.scor piog old .com
News Release No. 252
Scorpio Gold Reports Financial Results for Third Quarter of 2017
Vancouver, November 29, 2017 - Scorpio Gold Corporation (“Scorpi o Gold” or the “Company”) (TSX-
V: SGN) announces its financial results for the third quarter ended September 30, 2017 (“Q3”). This press
release should be read in conjunction with the Company’s conde nsed interim consolidated financial
statements for Q3 and Management Discussion & Analysis f or 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:
Q3 2017
Q3 2016
Nine Months
2017
Nine Months
2016
$ $ $ $
Revenue (000’s) 6,042 13,328 22,216 35,190
Mine operating (loss) earnings (000’s) (1,088) 3,177 2,432 8,109
Net (loss) earnings (000’s) (2,774) 2,331 (3,019) 4,609
Basic and diluted (loss) earnings per
share (0.02) 0.01 (0.02) 0.02
Adjusted net (loss) earnings (1) (000’s) (928) 2, 379 997 5, 67 8
Adjusted basic and diluted net (loss)
earnings per share (1) (0.01) 0.01 0.00 0.03
Adjusted EBITDA (1) (000’s) 26 3,508 3,058 7,893
Adjusted basic and diluted EBITDA
per share (1) 0.00 0.02 0.02 0.04
Cash flow from operating activities
(000’s) 1,037 5,906 3,601 10,418
Total cash cost per ounce of gold
sold (1) 1,209 956 991 883
Gold ounces sold 4,827 10,000 17,954 28,315
Gold ounces produced 4,935 9,981 15,336 28,578
Brian Lock, Interim CEO, comments: “The lower amount of gold ounces produced in Q3 2017 compared
to Q3 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 situation a ffected the number of gold ounces sold and
the corresponding revenues for Q3 of 2017. The net loss of $2.8 million reported for Q3 of 2017 includes
a $1.1 million non-cash impairment charge and a $0.8 million inve ntory write-down recorded in that
quarter.
(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 Q3 of 2017 for a complete definition and reconciliation to the IFRS results
reported in the Company’s financial statements for Q3 of 2017.
Scorpio Gold Corporation | 2
“The net loss of $3.0 million reported for the nine-month ended September 30, 2017 includes a $3.4
million non-cash impairment charge and a $0.8 million inventory write-down recorded during the period.
“The Company's annual production forecast for 2017 has been lower ed to between 19,000 and 20,000
ounces of gold from the previous production guidance provided of 20,000 to 25,000 ounces of gold.
“Mining at Mineral Ridge was suspended in early November 2017, a fter which management expects to
generate limited revenue from residual but diminishing gold rec overies from the leach pads. Mining was
suspended due to limited remaining pad capacity and higher strip ratios. The company has engaged Mine
Technical Services to prepare a NI 43-101 compliant mineral r esource estimate for resources already
defined on the property that could prove economical when added to a new milling process with gold
recoveries estimated to be 93%.
“The Company has engaged Bordeaux Capital Inc. to act as a financial advisor to Scorpio Gold in
connection with a proposed financing for the construction of a new milling facility at Mineral Ridge, to
re-finance the Company’s current debt and for general working capital purposes. This is a positive step
towards unlocking the value of the Mineral Ridge property.
“The Company also notes that the exploration potential associated with its current land position is highly
prospective, with total claim holdings of 13,756 acres of whic h 11,056 are outside the current Plan of
Operations boundary and less than five percent of that total has been drilled.”
Highlights for the Third Quarter Ended September 30, 2017 and Subsequent Events:
• 4,935 ounces of gold were produced at the Mineral Ridge mine dur ing Q3 of 2017, compared to
9,981 ounces during Q3 of 2016.
• Revenue of $6.0 million, compared to $13.3 million during Q3 of 2016.
• Total cash cost per ounce of gold sold (1) of $1,209 compared to $956 during Q3 of 2016.
• Mine operating loss of $1.1 million compared to mine operati ng earnings of $3.2 million during
Q3 of 2016.
• Net loss of $2.8 million ($0.02 basic and diluted per share), c ompared to net earnings of $2.3
million ($0.01 basic and diluted per share) during Q3 of 2016.
• Adjusted net loss (1) of $0.9 million ($0.01 basic and diluted per share) compared to $2.4 million
($0.01 basic and diluted per share) for Q3 of 2016.
• Adjusted EBITDA (1) close to nil ($0.00 basic and diluted per share) compared to $3.5 million
($0.02 basic and diluted per share) during Q3 of 2016.
• In October 2017, the Company announced a positive feasibility s tudy for processing the heap
leach mineral resource at Mineral Ridge, with a proven & probable mineral reserve of 6.9 million
tons grading 0.0171 oz/t (0.59 g/t) or 117,200 oz. of gold.
• On October 24, the Company engaged Mine Technical Services to complete a NI 43-101 mineral
resource report on existing drilled targets at the Mineral Ridge mine for possible run of mine feed
to the proposed milling facility.
(1) This is a non-IFRS measure; please see Non-IFRS performance measures section.
Scorpio Gold Corporation | 3
• On November 15, the Company announced the engagement of Bordeaux Cap ital Inc. to act as a
financial advisor to Scorpio Gold in connection with a proposed financing for the construction of
a new processing facility at Mineral Ridge, to re-finance the Company’s current debt and for
general working capital purposes.
Highlights for the Nine Months Ended September 30, 2017:
• 15,336 ounces of gold were produced at the Mineral Ridge mine, comp ared to 28,578 ounces
produced during the nine months ended September 30, 2016.
• Revenue of $22.2 million, compared to $35.2 million during the nine months ended September
30, 2016.
• Total cash cost per ounce of gold sold (1) of $991, compared to $883 during the nine months ended
September 30, 2016.
• Mine operating earnings of $2.4 million, compared to $8.1million during the nine months ended
September 30, 2016.
• Net loss of $3.0 million ($0.02 basic and diluted per share), c ompared to net earnings of $4.6
million ($0.02 basic and diluted per share) during the nine months ended September 30, 2016.
• Adjusted net earnings (1) of $1.0 million ($0.00 basic and diluted per share), compared to $5.7
million ($0.03 basic and diluted per share) during the nine months ended September 30, 2016.
• Adjusted EBITDA (1) of $3.1 million ($0.02 basic and diluted per share), compared to $7.9 million
($0.04 basic and diluted per share) million during the nine months ended September 30, 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 (loss) Earnings, which are non-IFRS measures. The
Company provides these measures as additional information reg arding the Company's financial results
and performance. Please refer to the Company's Management Discussion & Analysis for Q3 of 2017 for
definitions of these terms and a reconciliation of these measures to reported IFRS results.
About Scorpio Gold Corporation
Scorpio Gold holds a 70% interest in the 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. Mining at Mineral Ridge has recently been suspended: however, the
Company continues to generate limited revenues from the resid ual but diminishing recoveries from the
leach pads. Scorpio Gold also holds a 100% interest in t he advanced exploration-stage Goldwedge
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 an d 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
Scorpio Gold Corporation | 4
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-l ooking
statements that are based on the Company’s current expect ations and estimates. Forward-looking statements are frequ ently
characterized by words such as “plan”, “expect”, “projec t”, “intend”, “believe”, “anticipate”, “estimate”, “s uggest”, “indicate”
and other similar words or statements that certain events or conditions “may” or “will” occur, and include, without li mitation,
statements regarding the Company’s plans with respect to production at Mineral Ridge, its plan to finance the cons truction of a
new processing facility, the exploration, development a nd exploitation of its Mineral Ridge project, including any forecasts
regarding future production or costs related thereto and the e xploration potential of the Mineral Ridge property. 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 stat ements,
including risks relating to the operation of a gold mine, including unanticipated changes in the mineral content of materials being
processed from the leach pads; the suspension of mining at Mineral Ridge; unanticipated changes in recovery rates; the raising of
financing to facilitate construction of a new processing fa cility 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 in 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 Manage ment 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 u pdate any forward-looking statement, whether as a result of new
information, future events or results or otherwise. Forwa rd-looking statements are not guarantees of future performanc e and
accordingly undue reliance should not be put on such statements due to the inherent uncertainty thereof.