Scorpio Gold Reports Fourth Quarter and Provides Year-End Financial Results for 2016
TSX-V: SGN
1462 de la Quebecoise
Val-d’Or, QC, J9P 5H4
T: 819- 825-7618
www.scorpiogold.com
News Release No. 236
Scorpio Gold Reports Fourth Quarter and Provides Year-End
Financial Results for 2016
Vancouver, April 24, 2017 - Scorpio Gold Corpora tion (“Scorpio Gold” or the “Company”) (TSX-V:
SGN) is pleased to announce its financial results for the fourth quarter (“Q4”) and year ended December
31, 2016. This press release should be read in c onjunction with the Company’s consolidated financial
statements for the year ended December 31, 2016 and Management’s Discussion & Analysis (“MD&A”)
for the same period, available on the Compa ny’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:
Q4 2016 Q4 2015 2016 2015
$ $ $ $
Revenue (000’s) 7,569 10,828 42,759 44,587
Mine operating earnings (000’s) 1,529 1,452 9,638 7,691
Net (loss) earnings (000’s) (4,270) (4,665) 339 (17,986)
Basic and diluted loss per share (0.03) (0.03) (0.00) (0.13)
Adjusted net earnings(1) (000’s) 804 712 6,481 4,591
Adjusted basic and diluted net
earnings per share(1) 0.00 0.00 0.03 0.02
Adjusted EBITDA(1) (000’s) 1,617 2,665 9,510 10,611
Adjusted basic and diluted
EBITDA per share(1) 0.01 0.01 0.05 0.06(2)
Cash flow from (used in)
operating activities (000’s) 582 (31) 11,000 11,192
Total cash cost per ounce of gold
sold(1) 873 786 881 781
Gold ounces produced 8,301 9,503 36,879 39,690
(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 a complete definition and reconciliation to the Company’s financial
statements.
(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 | 2
2016 HIGHLIGHTS
• 36,879 ounces of gold produced at the Minera l Ridge mine compared to 39,690 ounces during
2015.
• Revenue of $42.8 million compared to $44.6 million during 2015.
• Total cash cost per ounce of gold sold (1) of $881 compared to $781 during 2015.
• Mine operating earnings of $9.6 million compared to $7.7 million during 2015.
• Net earnings of $0.3 million ($0.01 basic a nd diluted net loss per share) after non-cash
impairment charges of $3.6 million, $1.4 million net loss on write-off and disposal of mining
assets and $1.0 million loss on litigation, compared to a net loss of $18.0 million ($0.13 basic and
diluted per share) after non-cash impairment charges of $21.9 million during 2015.
• Adjusted net earnings (1) of $6.5 million ($0.03 basic and diluted per share) compared to $4.6
million ($0.02 basic and diluted per share) during 2015.
• Adjusted EBITDA (1) of $9.5 million ($0.05 basic and diluted per share) compared to $10.6
million ($0.06 (2) basic and diluted per share) during 2015.
• Cash flow from operating activities of $11.0 million compared to $11.2 million during 2015.
FOURTH QUARTER 2016 (“Q4”) HIGHLIGHTS
• 8,301 ounces of gold produced at the Mineral Ridge mine compared to 9,503 ounces in Q4 of
2015.
• Revenue of $7.6 million in Q4 of 2016 compared to $10.8 million during Q4 of 2015.
• Total cash cost per ounce of gold sold (1) of $873 in Q4 of 2016 compared to $786 during Q4 of
2015.
• Mine operating earnings of $1.5 million in both Q4 of 2016 and 2015.
• Net loss of $4.3 million ($0.03 basic and diluted per share), compared to $4.7 million ($0.03
basic and diluted per share) during Q4 of 2015. During Q4 of 2016, impairments of $3.6 million
on the mining assets, $1.0 million loss on litigation and $0.4 million write-off of mining assets
were recorded. During Q4 of 2015, impairment s of $4.9 million were recorded on the mining
assets.
• Adjusted net earnings (1) of $0.8 million ($0.00 basic and diluted per share) compared to $0.7
million ($0.00 basic and diluted per share) during Q4 of 2015.
• Adjusted EBITDA(1) of $1.6 million ($0.01 basic and diluted per share) compared to $2.7 million
($0.01 basic and diluted per share) during Q4 of 2015.
• Cash flow from operating activities of $0.6 million compared to close to nil in Q4 of 2015.
(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 a complete definition and reconciliation to the Company’s financial
statements.
(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
2017 Outlook
Based on the Company’s current mine plan, it currently anticipates mining of gold at Mineral Ridge
through to August 2017. Due to permitting timelines, the Company anticipates production of gold at
Mineral Ridge to be 20 – 25,000 ounces from the Mary LC, Brodie and Bluelite south pits. The Custer pit
and other areas for which permitting is outstanding, ar e not included in this production estimate and will
be evaluated for economics of associated mining timelines when permits are received. Given the
Company’s short remaining life of mine, it is taking initiatives to extend the life of mine at Mineral Ridge
through additional drilling to expand its resources, applying for permits to expand and extend current
operations of new and existing p its, expanding the heap leach pad, and conducting a drilling program on
its leach pad to determine if the leach pad material is amenable for further go ld recovery using milling
processes.
NON-IFRS MEASURES
The discussion of financial results in this press re lease includes reference to Adjusted net earnings,
Adjusted EBITDA, Total cash cost per ounce of gold sold 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 year ended December 31, 2016 for definitions
of these terms and a reconciliation of these measur es 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 pa rtner 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 explora tion-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 on short notice.
Scorpio Gold’s Chairman, Peter J. Hawley, P.Ge o., 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]
Scorpio Gold Corporation | 4
Website: www.scorpiogold.com
Neither TSX Venture Exchange nor its Regulat ion Services Provider (as that term is de fined 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 expectat ions and estimates. Forward-looking statements are frequently
characterized by words such as “plan”, “e xpect”, “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 ex ploitation of its Mineral Ridge
mine, including any forecasts regarding fu ture production or costs related thereto. Such forward-looking statements involve
known and unknown risks, uncertainties and othe r factors that could cause actual events or results to differ materially from
estimated or anticipated events or results implied or expressed in such forward-l ooking statements, including risks relating to
operation of a gold mine, including 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; availability of skilled labour and the impact of labo ur disputes; obtaining the required permits to
expand and extend mining activities; delays in obtaining governmental approvals; ch anges in metals prices ; the availability of
cash flows or financing to meet the Company’s ongoing financ ial obligations; unan ticipated 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 forw ard-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, whethe r 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.