CASH COSTS OF CAD $541/OZ (USD $411/OZ @0.76 USD/CAD)
AISC OF CAD $695/OZ (USD $528/OZ @0.76 USD/CAD)
OPERATING CASH FLOW OF CAD $26.4 MILLION ($0.11 PER SHARE)
MINE OPERATING EARNINGS OF CAD $18.3 MILLION
NET INCOME AND COMPREHENSIVE INCOME OF CAD
$ 8.0 MILLION
TOTAL CASH BALANCE OF $45 MILLION AND REDUCTION OF NET DEBT TO
$69 MILLION
REMAIN ON TRACK TO MEET ANNUAL PRODUCTION AND
COST GUIDANCE
Canadian dollars unless otherwise
noted
VANCOUVER, Nov. 15, 2018 /CNW/ - Atlantic Gold
Corporation (TSX-V: AGB) ("Atlantic" or the "Company") is
pleased to announce its operational and financial results for the
third quarter of 2018 at its Moose River Consolidated Gold Mine
("MRC") in Nova Scotia,
Canada.
Description
|
Q1
2018
|
Q2
2018
|
Q3
2018
|
YTD
2018
|
Gold Produced
(oz.)
|
18,183
|
22,269
|
27,570
|
68,022
|
Gold Sold
(oz.)
|
17,187
|
22,728
|
27,026
|
66,941
|
Cash Cost/oz.
($CAD)
|
549
|
569
|
541
|
552
|
AISC/oz.
($CAD)
|
751
|
743
|
695
|
726
|
Mine Operating
Earnings ($CAD)*
|
5,889,743
|
15,483,426
|
18,331,412
|
39,704,582
|
Operating Cash
Flow ($CAD)*
|
4,214,432
|
19,393,031
|
26,428,329
|
50,035,679
|
Total Cash Balance
($CAD)**
|
25,875,527
|
33,116,412
|
44,894,799
|
44,894,799
|
Net Debt
($CAD)
|
110,192,257
|
85,312,742
|
68,898,905
|
68,898,905
|
|
* Note: MRC commenced
commercial production effective March 1, 2018. As such, only
financial operating results from this date are recognized in the
Company's Statement of Income (Loss) and Other Comprehensive Income
(Loss) for the three and nine months ended September 30, 2018.
Financial operating results prior to that were capitalized to mine
development within property, plant and equipment.
|
** Note: Total Cash
is composed of cash and cash equivalents and restricted
cash.
|
The Company remains on track to deliver on its annual guidance
of producing 82,000 - 90,000 ounces at a cash cost (see "Non-IFRS
Performance Measures") of CAD $500 -
CAD $560 per ounce and an AISC
between CAD $675 - CAD $735 per ounce. The Company previously released
its gold production and gold sales for the third quarter of 2018 on
October 10, 2018.
In September, the Company announced the execution of a fully
underwritten $150 million senior
secured revolving credit facility ("RCF") with National Bank of
Canada. This facility was used to
repay the Company's project financing loan and for general working
capital purposes. Upon repayment of the project financing loan,
$13 million of restricted cash was
reclassified to cash and cash equivalents. The Company has a total
cash balance at September 30, 2018 of
$45 million, comprising cash and cash
equivalents of $40 million and
restricted cash of $5m. The
restricted cash balance includes a $4
million GIC, representing 50% of the Company's reclamation
bond with the province of Nova
Scotia. The reclamation bond was issued by way of a surety
bond, with the restricted GIC held as security against the surety
bond. The GIC is planned to be liberated in Q4 2018. The remaining
$0.8 million restricted cash balance
is a Debt Service Reserve Account ("DSRA") that is required
under the Equipment Credit Facility. The DSRA will also be
liberated in Q4 2018.
For the final quarter of 2018, the Company will continue to
focus on the following:
- Producing 82,000 - 90,000 ounces from Touquoy in 2018 at a cash
cost of $500 - $560 per ounce (US$400 – US$448 per
ounce at an exchange rate of CAD$0.80), and an AISC between $675 and $735 per
ounce (US$540 – US$588 per ounce, at an exchange rate of
CAD$0.80).
- Progressing the Company's Phase 4 Corridor Regional diamond
drilling program which commenced in April
2018, with the objective to systematically explore the
regional prospective host structure targeting the Company's
disseminated style gold deposit model amenable to open pit
mining.
- Progressing and seeking approval of the Environmental Impact
Statement for Beaver Dam which was
submitted in June 2017.
- Preparation of the Fifteen Mile Stream and Cochrane Hill
Projects Environmental Impact Statements, with submissions expected
in Q1 2019.
- Completion of drilling programs at Touquoy, Fifteen Mile Stream
and Cochrane Hill to delineate and expand resources and reserves of
those deposits. The Company plans to release updated resource
and reserve estimates for all deposits in Q1 2019.
Q3 and YTD 2018 Operating Results**:
|
|
|
|
|
|
Three months
ended
September 30, 2018
|
Nine months ended
September 30, 2018
|
Operating
data
|
|
|
|
Ore mined
|
Tonnes
|
1,051,452
|
2,903,805
|
Waste to ore
ratio
|
(waste to
ore)
|
0.65
|
0.76
|
Mining rate (waste +
ore)
|
Tonnes per
day
|
18,843
|
18,764
|
Ore milled
|
Tonnes
|
581,129
|
1,567,517
|
Head grade
|
g/t Au
|
1.54
|
1.42
|
Recovery
|
%
|
95.5
|
95.0
|
Mill
throughput
|
Tonnes per
day
|
6,317
|
5,742
|
Gold ounces
produced
|
ozs.
|
27,570
|
68,022
|
Gold ounces
sold
|
ozs.
|
27,026
|
66,941
|
|
**Disclosure of
operating results and supporting discussion in this news release
does not present comparative statistics for the prior year as MRC
began producing gold in Q4 2017 and commenced commercial production
effective March 1, 2018.
|
Gold production and sales
During the three months
ended September 30, 2018, MRC
produced 27,570 ounces of gold and sold 27,026 ounces of gold.
During the nine months ended September
30, 2018, the Company produced 68,022 ounces of gold. This
includes 9,373 ounces of gold produced during operation ramp up in
January and February 2018, prior to
commencement of commercial production. Gold sales during the nine
months ended September 30, 2018 was
66,941 ounces. This includes 9,432 ounces of gold sold during
operation ramp up in January and February
2018, prior to commencement of commercial production.
Mining
During the three months ended September 30, 2018, a total of 1,051,452 tonnes
of ore were mined at a waste to ore ratio of 0.65:1 with a total of
1,733,582 tonnes of material moved.
During the nine months ended September
30, 2018, a total of 2,903,805 tonnes of ore were mined, at
a waste to ore ratio of 0.76 with a total of 5,122,684 tonnes of
material moved. Approximately 49% of the ore mined for the
nine months ended September 30, 2018
was stockpiled as low and medium-grade material which will be
readily available for processing later in the mine life. This
material was assumed to be waste in the 2015 Feasibility
Study. Waste material was used to build the Tailings
Management Facility ("TMF") and the waste dump with its ditches and
water collection area.
Processing
During the three months ended September 30, 2018, a total of 581,129 tonnes of
ore was processed at an average grade of 1.54 g/t Au and average
process recovery of 95.5% which exceeded the design process
recovery of 94.0%. Mill throughput averaged approximately
6,300 tonnes per day, which exceeds design throughput. Higher
milled grades in Q3 2018 can be attributed to a return to the
planned mining sequence and ramp development. Access to
higher grade areas was previously restricted due to the existence
of historic tailings that required removal and disposal prior to
developing the main access ramp in the south of the Touquoy
pit.
A total of 1,567,517 tonnes of ore was processed during the nine
months ended September 30, 2018, at
an average grade of 1.42 g/t Au with a recovery of 95.0%.
Throughout 2018, the Company has continued its efforts to
optimize certain areas of the plant including the crushing circuit,
reagents consumption and overall energy management. Operations
statistics since the commencement of commercial production on
March 1, 2018 support the Company's
full year production guidance for 2018.
Sustaining capital
The Company incurred a total of
$2,722,837 and $7,151,687 in sustaining capital expenditures
during the three and nine months ended September 30, 2018, respectively. The majority of
the expenditures relate to the scheduled Tailings Management
Facility Stage 2 raise to the targeted elevation which was largely
completed by Q3 2018.
Growth capital
The Company incurred a total of
$2,112,699 and $7,001,895 in growth capital expenditures during
the three and nine months ended September
30, 2018, respectively. Most of the expenditures
relate to development of the waste dump area, removal of historic
tailings, and costs associated with initial fit-out of site
infrastructure, as well as costs incurred due to design and
commissioning issues identified as part of the ramp-up process in
Q1 2018. Work associated with the removal of the historic
tailings is classified as growth capital as it has created the
ability to conduct additional exploration activities with the
objective of identifying resources at Touquoy not contemplated in
the Company's current life of mine plan. The waste dump area
expenditures have been capitalized as the waste dump will create
additional space to place material blasted within the Tailings
Management Facility, which in turn creates additional capacity
beyond requirements for the current life of mine reserves.
Moreover, additional ditching around the waste dump area was
a required directive from environmental regulators, not originally
in the industrial approval. Mainly due to the activities
mentioned above, the Company is now guiding towards growth capital
expenditures for 2018 of $9 million,
compared to $5m - 6m guided in January
2018.
Q3 2018 Financial Results
|
|
|
|
For the three months
ended
September 30, 2018
|
For the nine months
ended
September 30, 2018
|
IFRS
Measures(1)
|
|
|
Revenue
|
CAD
$41,913,575
|
CAD
$90,683,677
|
Mine operating
earnings
|
18,331,412
|
39,704,582
|
Cash generated from
operating activities
|
26,428,329
|
50,035,679
|
Net income and
comprehensive income
|
7,969,986
|
19,623,273
|
Earnings per share -
basic
|
0.03
|
0.09
|
Earnings per share –
diluted
|
0.03
|
0.08
|
Operating cash flow
per share – basic
|
0.11
|
0.23
|
Operating cash flow
per share – diluted
|
0.11
|
0.21
|
Non IFRS Performance
Measures(2)
|
|
|
Total cash cost per
ounce
|
CAD $541
|
CAD $552
|
AISC per
ounce
|
695
|
726
|
Average realized
price per ounce
|
1,552
|
1,580
|
Average realized cash
margin per ounce
|
1,011
|
1,028
|
Average realized AISC
margin per ounce
|
857
|
854
|
|
|
|
|
As at September 30,
2018
|
As at December 31,
2017
|
Key Balance Sheet
Items
|
|
|
Total
cash(3)
|
CAD
$44,894,799
|
CAD
$32,687,346
|
Total
assets
|
284,025,941
|
258,565,362
|
Current portion of
long-term debt
|
3,361,347
|
32,210,417
|
Long-term
debt
|
110,432,357
|
105,617,533
|
|
|
(1)
|
MRC commenced
commercial production effective March 1, 2018. As such, only
financial operating results from this date are recognized in the
Company's Statement of Income (Loss) and Other Comprehensive Income
(Loss) for the three and nine months ended September 30, 2018.
Financial operating results prior to that were capitalized to mine
development within property, plant and equipment.
|
(2)
|
The Non-IFRS
performance measures for the nine months ended September 30, 2018
include pre-commercial production operating results from January
2018 and February 2018. For accounting purposes, pre-commercial
production financial operating results have been capitalized to
property, plant and equipment (refer to note 9 of the interim
financial statements for the three and nine months ended September
30, 2018). Refer to the "Non IFRS Performance Measures" section in
this news release and in the Company's Management and Discussion
Analysis for the nine months ended September 30, 2018.
|
(3)
|
As at September 30,
2018 total cash as presented above represents the cash and cash
equivalents balance on the Company's Condensed Consolidated Interim
Balance Sheet of $40,078,677 plus the restricted cash balance of
$4,816,122. As at December 31, 2017 total cash as presented
above represents the cash and cash equivalents balance on the
Company's Condensed Consolidated Interim Balance Sheet of
$22,093,914 plus the restricted cash balance of
$10,593,432.
|
In the three months ended September 30,
2018 the Company had earnings of $7,969,986, an increase of $9,290,094, when compared to the 2017 comparative
period as the Company commenced commercial production in 2018,
recognizing mine operating earnings of $18,331,412 for the three months ended
September 30, 2018. The mine
operating earnings were before general and administration expenses
of $1,905,835 and $4,216,711 in finance costs.
The income (loss) for the three months ended September 30, 2018 and 2017 is comprised of the
following items:
|
|
|
|
Three months
ended
|
Three months
ended
|
|
September 30,
2018
|
September 30,
2017
|
|
|
|
Mine operating
earnings
|
18,331,412
|
-
|
General &
Administration
|
(1,905,835)
|
(1,356,817)
|
Financing
costs
|
(4,216,711)
|
(60,582)
|
Interest and other
income
|
174,058
|
54,416
|
|
|
|
Net earnings
(loss) before income taxes
|
12,382,924
|
(1,362,982)
|
Deferred income tax
(loss) recovery
|
(4,412,938)
|
42,874
|
|
|
|
Net earnings
(loss) and comprehensive earnings (loss)
|
$
|
7,969,986
|
$
|
(1,320,108)
|
Mine operating earnings
The mine operating earnings for the three months ended
September 30, 2018 and 2017 is
comprised of the following.
|
|
|
|
2018
|
2017
|
Revenue
|
$
|
41,913,575
|
$
|
-
|
Costs of
sales
|
(14,751,461)
|
-
|
Depreciation and
depletion
|
(8,830,702)
|
-
|
|
|
|
Mine operating
earnings
|
$
|
18,331,412
|
$
|
-
|
During the three months ended September
30, 2018, the Company sold 27,026 ounces of gold at an
average price of $1,552 resulting in
net revenue of $41,913,575. The
Company delivered 22,800 ounces into fixed price contracts and the
remaining 4,226 ounces were sold at spot price. Revenue is net of
treatment and refining costs which were $37,488 for the three months ended September 30, 2018.
The costs of sales are comprised of production costs, including
mining, processing, maintenance, site administration and site
share-based payments. Cash costs per ounce sold for the three
months ended September 30, 2018 were
$541 (see Non-IFRS Performance
Measures section).
Depreciation and depletion was $8,830,702. Most assets are depreciated or
depleted on a units-of-production basis over the reserves to which
they relate.
AISC per ounce sold for the three months ended September 30, 2018 was $695 (see Non-IFRS Performance Measures
section). This is within the guidance range for the full year
of 2018. AISC per ounce as compared to Q2 2018 is lower and is the
result of the Company undertaking optimizations of the MRC process
facility throughout the two quarters.
General and administration
General and administration expense for the three months ended
September 30, 2018 and 2017 is
comprised of:
|
|
|
|
|
|
2018
|
2017
|
Amortization
|
|
$
26,730
|
$
24,847
|
Corporate development
and investor relations
|
|
82,214
|
71,031
|
Director
fees
|
|
78,125
|
55,625
|
Management fees,
salaries and benefits
|
|
756,401
|
383,101
|
Office and
general
|
|
51,268
|
65,656
|
Professional
fees
|
|
133,463
|
296,731
|
Rent
|
|
45,741
|
50,050
|
Share-based
payments
|
|
662,157
|
357,150
|
Travel, meals and
entertainment
|
|
49,164
|
37,054
|
Transfer agent and
filing fees
|
|
20,572
|
15,571
|
|
|
$1,905,835
|
$1,356,817
|
In the three months ended September 30,
2018, the Company experienced an increase in general and
administration costs over the three months ended September 30, 2017 due to increased activity and
aligning staffing to an appropriate level for that of an operating
entity.
Management fees, salaries and benefits were $756,401 in the three months ended September 30, 2018, an increase of $373,300 over the three months ended September 30, 2017. The increase is a result of
the growth of the Company largely stemming from increased activity,
specifically, the commencement of operations at MRC and the further
development of the Company's other Nova
Scotia deposits.
Share-based payments, increased by $305,007 to $662,157 and represents the Black-Scholes
calculated fair value of stock options issued to directors,
officers, consultants and employees which vested during the period.
The increase in share-based payments is due primarily to the
increase in the number of options granted and vesting and to the
increased share price, which, with all other variables being equal
increases the value assigned to each option, in addition to an
increase in the number of employees eligible to participate in the
Company's stock option plan.
Financing Costs
Financing costs are comprised of interest incurred on the
Company's long-term debt facilities, and amortization of deferred
transaction costs. Prior to the start of commercial production on
March 1, 2018, the interest,
accretion and amortization of the transaction costs related to the
long-term debt facilities were capitalized to mineral properties
and expensed thereafter.
Financing costs for the three months ended September 30, 2018 were comprised
of:
|
Total
financing
costs - 2018
|
Financing
costs –
expensed 2017
|
Financing
costs –
capitalized 2017
|
Total
financing
costs - 2017
|
|
|
|
|
|
Interest on the
PLF
|
$
1,732,105
|
$
-
|
$
1,691,920
|
$
1,691,920
|
Interest on
RCF
|
190,262
|
|
|
|
Amortization of
transaction costs on the PLF
|
2,106,713
|
-
|
477,232
|
477,232
|
Interest and
accretion of convertible debt
|
-
|
-
|
330,663
|
330,663
|
Financing fees on
capital leases
|
158,994
|
-
|
174,401
|
174,401
|
Accretion on
reclamation provision
|
17,889
|
5,990
|
-
|
5,990
|
Other financing
charges
|
10,748
|
54,592
|
-
|
54,592
|
|
$
4,216,711
|
$60,582
|
$2,674,216
|
$
2,734,798
|
In the three months ended September 30,
2017, total financing costs were $2,734,798, of which $2,674,216 finance costs were capitalized to
mineral properties and development costs with $60,582 expensed to the statement of income
(loss), compared to a total of $4,216,711 finance costs in the current period,
which all were expensed to the statement of income (loss), as a
result of the Company commencing commercial production on
March 1, 2018. Financing costs in the
nine months ended September 30, 2018
were higher as a result of expensing the remaining deferred
transaction costs relating to the Company's PLF, as the Company
repaid all debt owing under the PLF.
During the three months ended September
30, 2018, $10,748 in standby
charges were incurred in respect of the RCF, compared to standby
fees of $54,592 incurred in the three
months ended September 30, 2017
related to the PLF and Equipment Facility. Accretion expense on the
reclamation obligation was $17,889 in
the three months ended September 30,
2018 compared to $5,990 in the
three months ended September 30,
2017.
Deferred Income Tax Recovery/(Loss)
During the three months ended September
30, 2018, the Company recognized a deferred income tax
expense of $4,412,938, a non-cash
accounting loss, versus a deferred income tax recovery of
$42,874 for the three months ended
September 30, 2017. This does
not represent cash taxes payable at the end of the current period.
The expense recognized in the current period is largely a result of
taxable temporary differences resulting from the income generated
at MRC consuming formerly recognized loss tax pools which are
categorized as deductible temporary differences. A deferred
income tax asset was not recorded in prior periods as up until
2018, there was no reasonable expectation of realizing such assets
through a history of income. Furthermore, taxable temporary
differences exist as a result of the Company incurring flow through
related expenditures which are capitalized on the Company's balance
sheet but have no tax basis as the expenditures are renounced to
the related flow through investor.
Working Capital and Liquidity
The Company has a working capital surplus position as at
September 30, 2018 of $34,779,085. Included in this surplus position is
$3,361,347 related to the current
portion of the Company's debt. Excluded from this surplus position
is $4,816,122 of restricted cash,
which is planned to be liberated in Q4 2018 into cash and cash
equivalents.
The Company believes that it has sufficient funding to meet its
obligations and to maintain administrative and operational
expenditures for the next 12 months from existing treasury,
estimated future operating cash flows, as well as the new revolving
credit facility. MRC is expected to produce 82,000 to 90,000
ounces of gold in 2018 at a cash costs of between CAD $500 to CAD $560
per ounce. In order to mitigate gold price risk, the Company
entered into margin free gold forward sales contracts for 215,000
ounces which is at a flat forward price of CAD $1,550 per ounce and scheduled out its hedged
contracts over the life of the PLF (the "Hedge Facility") to
be delivered during production in 2018 and beyond. As of
September 30, 2018, there were
166,673 ounces committed to the gold forward contracts for delivery
between October 2018 and February 2021.
Exploration Update
Phase 3 Expansion Drilling Program
The Company completed its Phase 3 Expansion drilling program at
Fifteen Mile Stream and Cochrane Hill in the first quarter of
2018.
The program successfully identified additional gold resources
immediately peripheral to mineral resources previously defined at
Fifteen Mile Stream and Cochrane Hill. Compilation and
interpretation of the results has indicated there may be further
potential to extend the mineral resources along strike and at
depth, at both deposits and, as a result, additional drill programs
are underway. Approximately 28,175m
will be completed, including approximately 12,675m at Egerton-MacLean (within Fifteen Mile
Stream) and 15,500m at Cochrane Hill.
A total of 2,729m was completed
in 15 holes at Egerton-MacLean during the Quarter.
The Company currently plans to have the updated resource
estimates completed in Q4, 2018 when the results of planned
drilling have been received and analyzed.
The Company is also working on reserve estimate updates at
Touquoy. The Company plans to release to the public the
updated resource and reserve estimates for all deposits in Q1
2019.
Phase 4 Program
The Phase 4 Corridor Regional Program was initiated late April
to evaluate the under-explored and geologically prospective 45km
trend which extends northeast from its Touquoy gold deposit at MRC,
to the Beaver Dam gold deposit and
through to the Fifteen Mile Stream gold deposits in the northeast.
This trend is underlain by the Moose River Formation, a geological
unit comprised of a sequence of folded argillites and greywacke
which hosts the gold mineralization within the above noted
deposits. In detail, the mineralization is related to the axial
planar region of anticlines, primarily in the argillic units. The
Phase 4 Corridor Regional Program may ultimately comprise a total
of up to 100,000 metres of diamond drilling distributed throughout
this trend.
The first results of the Phase 4 Corridor Regional Program,
announced in a news release on June 28,
2018, reported the discovery of a new zone of significant
mineralization at the 149 Prospect, approximately 1km east from the
Fifteen Mile Stream deposits. Initial widely spaced drilling
produced encouraging results which, when followed up, resulted in
the discovery of shallow, near surface gold mineralization over a
strike length of 250m.
Early stage interpretation suggests that mineralization is of a
style similar to that located in the Egerton-MacLean zone of the
Fifteen Mile Stream deposits. The gold mineralization is associated
with disseminated arsenopyrite and banded pyrrhotite in argillite
units on the northern flank of an east-west trending anticlinal
structure. Based on limited drilling to date, the mineralization
appears to dip approximately 60-75° north, may be up to
25m in true thickness and is covered
by a modest 5m glacial till
cover.
Additional deeper drilling is planned for Q4 2018 at the 149
Prospect to extend the higher grade "axial" zone to depth and
additional shallow drilling is required to follow the deeper "limb"
zone closer to surface. Aeromagnetic interpretation also indicates
potential for similar geological settings to occur further to the
east and additional reconnaissance-spaced drilling is required to
test these zones. Permitting has commenced to allow this work to
proceed.
In general, four diamond drill rigs are currently working to
complete the initial phase of the Corridor Regional Program,
comprising 16 1-2 km spaced traverses, totaling approximately
32,000m of diamond drilling.
18,440m of drilling has been
completed to the end of Q3 2018.
Qualified Persons
Kodjo Afewu, PhD, SME (CP), Plant Manager for the Company and a
Qualified Person as defined by NI 43-101, has approved the
scientific and technical information related to operations matters
contained in this news release.
Doug Currie, P. Geo., MAusIMM
(CP), General Manager of Exploration for the Company and a
Qualified Person as defined by NI 43-101, has approved the
scientific and technical information related to exploration matters
contained in this news release.
Conference Call Details
Atlantic Gold Corporation is hosting a live Q&A conference
call to discuss the results on November 15,
2018 at 2:00 pm Eastern time
(11:00 am Pacific time) with the
Atlantic executive team. Participants may join the call by
dialing:
Participant Dial-in Numbers:
|
|
|
|
Local -
Toronto
|
(+1) 416 764
8688
|
|
|
|
|
Local -
Vancouver
|
(+1) 778 383
7413
|
|
|
|
|
Toll Free - North
America
|
(+1) 888 390
0546
|
Additional International Dial-in Numbers: UK: 08006522435,
Switzerland: 0800312635,
Germany: 08007240293, Hong Kong: 800962712
Please provide the company name (Atlantic Gold Corporation) to
the operator. A recorded playback of the call will be
available one hour after the call's completion until December
15th, 2018 by dialing:
|
|
|
|
Toll Free - North
America
|
(+1) 888 390
0541
|
Enter the playback passcode: 246066#, an MP3 recording will also
be available on the Atlantic website.
Further updates will be provided in due course.
On behalf of the Board of Directors,
Steven Dean
Chairman and Chief Executive Officer
Neither the 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.
About Atlantic:
Atlantic is a well-financed, growth-oriented gold
development group with a long-term strategy to build a mid-tier
gold production company focused on manageable, executable projects
in mining-friendly jurisdictions.
Atlantic is focused on growing gold production in
Nova Scotia beginning with its MRC
phase one open pit gold mine which declared commercial production
in March 2018, and its phase two Life
of Mine Expansion which will ramp up gold production to + 200,000
ounces per year at industry lowest quartile cash and
all-in-sustaining-costs (as stated in the Company's news releases
dated January 19, 2018 and
January 29, 2018).
Atlantic is committed to the highest standards of
environmental and social responsibility and continually invests in
people and technology to manage risks, maximize outcomes and
returns to all stakeholders.
Forward-Looking Statements:
This release contains certain "forward looking statements"
and certain "forward-looking information" as defined under
applicable Canadian and U.S. securities laws. Forward-looking
statements and information can generally be identified by the use
of forward-looking terminology such as "may", "will", "expect",
"intend", "estimate", "anticipate", "believe", "continue", "plans"
or similar terminology. Forward-looking statements and information
are not historical facts, are made as of the date of this press
release, and include, but are not limited to, statements regarding
discussions of future plans, guidance, projections, objectives,
estimates and forecasts and statements as to management's
expectations with respect to, among other things, the activities
contemplated in this news release and the timing and receipt of
requisite regulatory, and shareholder approvals in respect thereof.
Forward looking information, including future oriented financial
information (such as guidance) provide investors an improved
ability to evaluate the underlying performance of the
Company. Forward-looking statements in this news release
include, without limitation, statements related to proposed
exploration and development programs, grade and tonnage of material
and resource estimates. These forward looking statements involve
numerous risks and uncertainties and actual results may vary.
Important factors that may cause actual results to vary include
without limitation, the timing and receipt of certain approvals,
changes in commodity and power prices, changes in interest and
currency exchange rates, risks inherent in exploration estimates
and results, timing and success, inaccurate geological and
metallurgical assumptions (including with respect to the size,
grade and recoverability of mineral reserves and resources),
changes in development or mining plans due to changes in
logistical, technical or other factors, unanticipated operational
difficulties (including failure of plant, equipment or processes to
operate in accordance with specifications, cost escalation,
unavailability of materials, equipment and third party contractors,
delays in the receipt of government approvals, industrial
disturbances or other job action, and unanticipated events related
to health, safety and environmental matters), political risk,
social unrest, and changes in general economic conditions or
conditions in the financial markets. In making the forward-looking
statements in this press release, the Company has applied several
material assumptions, including without limitation, the assumptions
that: (1) market fundamentals will result in sustained gold demand
and prices; (2) the receipt of any necessary approvals and consents
in connection with the development of any properties; (3) the
availability of financing on suitable terms for the development,
construction and continued operation of any mineral properties; and
(4) sustained commodity prices such that any properties put into
operation remain economically viable. Information concerning
mineral reserve and mineral resource estimates also may be
considered forward-looking statements, as such information
constitutes a prediction of what mineralization might be found to
be present if and when a project is actually developed. Certain of
the risks and assumptions are described in more detail in the
Company's audited financial statements and MD&A for the year
ended December 31, 2017 and for the
quarter ended September 30, 2018 on
the Company's SEDAR profile at www.sedar.com. The actual results or
performance by the Company could differ materially from those
expressed in, or implied by, any forward-looking statements
relating to those matters. Accordingly, no assurances can be given
that any of the events anticipated by the forward-looking
statements will transpire or occur, or if any of them do so, what
impact they will have on the results of operations or financial
condition of the Company. Except as required by law, the Company is
under no obligation, and expressly disclaim any obligation, to
update, alter or otherwise revise any forward-looking statement,
whether written or oral, that may be made from time to time,
whether as a result of new information, future events or otherwise,
except as may be required under applicable securities laws.
Non-IFRS Performance Measures
The Company has included certain non-IFRS measures in this
news release. The company believes that these measures, in
addition to conventional measures prepared in accordance with IFRS,
provide investors an improved ability to evaluate the underlying
performance of the company. The non-IFRS measures are intended to
provide additional information and should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with IFRS. These measures do not have any
standardized meaning prescribed under IFRS and therefore may not be
comparable with other issuers. Readers should refer to the
Company's management discussion and analysis, available on the
Company's profile on SEDAR and on the Company's website, under the
heading "Non-IFRS Performance Measures" for a more detailed
discussion of how the Company calculates certain such measures and
reconciliation of certain measures to IFRS terms.
Cash costs
Cash costs are a common financial performance measure in the
gold mining industry but with no standard meaning under IFRS.
Atlantic reports total cash costs on a sales basis. The Company
believes that, in addition to conventional measures prepared in
accordance with IFRS, such as sales, certain investors use this
information to evaluate the Company's performance and ability to
generate operating earnings and cash flow from its mining
operations. Management uses this metric as an important tool to
monitor operating cost performance.
Cash costs include production costs such as mining,
processing, refining and site administration, less non-cash
share-based compensation divided by gold ounces sold to arrive at
total cash costs per gold ounce sold. Costs include royalty
payments and permitting costs Production costs are exclusive of
depreciation. Other companies may calculate this measure
differently.
All-in sustaining costs
The Company believes that AISC more fully defines the total
costs associated with producing gold. The company calculates all-in
sustaining costs as the sum of total cash costs (as described
above), corporate general and administrative expense (net of
stock-based compensation), reclamation cost accretion and
amortization and sustaining capital, all divided by the gold ounces
sold to arrive at a per ounce figure.
Other companies may calculate this measure differently as a
result of differences in underlying principles and policies
applied. Differences may also arise due to a different definition
of sustaining versus growth capital.
SOURCE Atlantic Gold Corporation