VANCOUVER, BC, April 18,
2024 /CNW/ - Elevation Gold Mining
Corporation (TSXV: ELVT) (OTCQB: EVGDF) (the "Company" or
"Elevation Gold") is pleased to announce financial results for
three months and year ended December
31, 2023. All figures are expressed in US dollars
unless otherwise noted.
Summary for the Three Months and Year Ended December 31, 2023
- Elevation produced 7,989 ounces of gold and 60,706 ounces of
silver for the three months ended December
31, 2023, and 31,047 ounces of gold and 202,060 ounces of
silver for the year ended December 31,
2023.
- The Company generated total revenue of $66.4 million during the year, an increase of 7%
compared to 2022, on 31,063 ounces of gold and 281,467 ounces of
silver sold. The average realized price of gold per ounce sold for
the three months ended December 31,
2023 was $1,916.
- Income from mine operations before depreciation and depletion
of $12.5 million for the 2023
year.
- For the three months ended December 31,
2023, total cash costs per ounce of gold sold (1)
were $1,424 and all-in sustaining
costs ("AISC") per ounce of gold sold (1) were
$2,126.
Tim Swendseid, Elevation Gold
CEO, stated: During the fourth quarter our production and financial
results were impacted by challenges in and around the crushing
plant. Our income from mine operations before depreciation
and depletion was $3.8 million for
the quarter and $12.5 million for the
year, both reflecting a steady improvement compared to results for
the same periods last year. Cash costs per ounce sold was
$1,424, which is similar to Q4 2022,
and $1,524 for the year, reflecting
an $186/oz improvement over the 2022
year. We completed and put into operation the 3A-Ph2 leach pad and
completed and reported the results of additional reverse
circulation holes in Reynolds Pit and the Mordor area. (See News
Release dated February 27,
2024.) We are currently benefiting from strong gold prices
but continue to preserve our liquidity by temporarily suspending
royalty payments and silver stream deliveries as we announced on
April 4, 2024. As we also
announced on April 4, 2024, first
quarter 2024 production was disappointing, but based on current
mining operations, we expect an improvement in production during
the second quarter of this year.
Consolidated Financial Results Summary
The following table provides a summary of the components of the
Company's results for the three months and years ended December 31, 2023 and 2022. For further
details, refer to the Company's Consolidated Financial Statements
and Management Discussion and Analysis ("MD&A") for the year
ended December 31, 2023.
|
(in
thousands of dollars)
|
Q4
2023
|
|
Q4 2022
|
YTD
2023
|
YTD 2022
|
|
Revenue
|
$
|
16,337
|
$
|
17,108
|
$
|
66,356
|
$
|
62,008
|
|
Production
costs
|
|
(11,637)
|
|
(13,467)
|
|
(50,429)
|
|
(56,396)
|
|
Royalties
|
|
(881)
|
|
(952)
|
|
(3,419)
|
|
(3,196)
|
|
Mine operating income
before depreciation
and
depletion
|
|
3,819
|
|
2,689
|
|
12,508
|
|
2,416
|
|
Depreciation and
depletion
|
|
(3,234)
|
|
(4,463)
|
|
(13,568)
|
|
(10,310)
|
|
Income (loss) from mine
operations
|
|
585
|
|
(1,774)
|
|
(1,060)
|
|
(7,894)
|
|
Corporate
administrative expenses
|
|
(776)
|
|
(712)
|
|
(3,064)
|
|
(3,429)
|
|
Finance
costs
|
|
(2,068)
|
|
(1,585)
|
|
(8,449)
|
|
(6,646)
|
|
Gain on modification of
debt
|
549
|
|
-
|
|
549
|
|
-
|
|
Gain (loss) on
revaluation of derivative liabilities
|
|
(637)
|
|
(5,167)
|
|
793
|
|
8,097
|
|
Impairment of plant and
equipment and
mineral properties (1)
|
|
(11,163)
|
|
-
|
|
(11,163)
|
|
(33,850)
|
|
Other
|
|
(94)
|
|
(52)
|
|
(150)
|
|
114
|
|
Loss for the
period
|
$
|
(13,604)
|
$
|
(9,290)
|
$
|
(22,544)
|
$
|
(43,608)
|
|
(1) During the year ended
December 31, 2023, the Company recognized a non-cash impairment of
mineral properties of $11.2 million (2022: $33.9 million), of which
$8.8 million (2022: $nil) was recorded in plant and equipment, $1.7
million (2022: $21.5 million) was recorded in depletable mineral
properties and $0.7 million (2022: $12.3 million) in non-depletable
mineral properties. Management completed an assessment of
impairment indicators for the Moss Mine cash generating unit
("CGU") due to continued losses from mining operations as well as
the Company's market capitalization remaining below the carrying
value of net assets. Accordingly, the Company estimated the
recoverable amounts of the CGU and compared them to the carrying
value of the CGU. The recoverable amount of the CGU was based
on a fair value less cost of disposal method using discounted cash
flow models. Upon completion of the Company's impairment
assessment, it was determined that the Moss Mine CGU was impaired
by $11.2 million, which resulted in a charge of the same amount to
the Company's statement of income and loss and is included in the
YTD 2023 period.
|
The projected cash flows used in impairment testing are
significantly affected by changes in assumptions. Key
assumptions included by management in the discounted cash-flow
model included a gold price of $2,108
per ounce, gold and silver recoveries of 77% and 43%, respectively,
as indicated in life of mine plans, and a real after-tax discount
rate of 6%. Management's estimates of the recoveries are prepared
by or under the supervision of and verified by Qualified Persons as
defined in National Instrument 43-101 of the Canadian Securities
Administrators (management's experts). The Company performed a
sensitivity analysis on these key assumptions. Based on the
impairment testing performed at December 31,
2022, the sensitivity to changes in these key assumptions is
as follows:
- a 10% decrease in the short and long term gold prices would
result in an additional impairment of $19.6
million,
- a 10% decrease in gold recoveries would result in an additional
impairment of $19.0 million, and
- a 1% increase in the real after-tax discount rate to 7% would
result in an additional impairment of $0.7
million.
Consolidated Operational Results Summary
The following table provides a summary of the Company's
operational statistics for the three months and years ended
December 31, 2023 and 2022. For
further details, refer to the Company's MD&A for the same
periods.
|
|
Three Months
Ended
December 31,
|
|
Year Ended December
31,
|
|
|
2023
|
2022
|
|
2023
|
2022
|
|
Ore tonnes
mined
|
t
|
620,039
|
723,418
|
|
2,747,220
|
2,963,038
|
|
Ore tonnes
stacked
|
t
|
604,147
|
738,478
|
|
2,798,293
|
2,976,281
|
|
Contained gold ounces
stacked
|
oz
|
10,421
|
12,540
|
|
42,206
|
43,401
|
|
Gold grade
|
g/t
|
0.54
|
0.53
|
|
0.47
|
0.45
|
|
Gold ounces
produced
|
oz
|
7,989
|
9,183
|
|
31,047
|
31,094
|
|
Gold ounces
sold
|
oz
|
7,754
|
9,060
|
|
31,063
|
31,666
|
|
Average realized gold
price (2)
|
($/oz)
|
$
1,916
|
$
1,732
|
|
$
1,927
|
$
1,786
|
|
Cash costs per ounce
of gold sold (2)
|
($/oz)
|
$
1,424
|
$
1,435
|
|
$
1,524
|
$
1,710
|
|
AISC per ounce of gold
sold (2)
|
($/oz)
|
$
2,126
|
$
1,634
|
|
$
2,130
|
$
2,165
|
|
(2)
|
Refer to the
Company's Management Discussion and Analysis for the year ended
December 31, 2022 and 2021 for a reconciliation to non-IFRS
performance measures.
|
Qualified Persons
Unless otherwise indicated, the technical disclosure contained
within this press release that relates to the Company's operating
mine has been reviewed and approved by Tim J. Swendseid, P.E., MBA,
CFA, Chief Executive Officer of the Company and a Qualified Person
for the purpose of NI 43-101.
Additional Information
Consolidated financial statements for the years ended
December 31, 2023 and 2022 and
related MD&A for the same periods can be found at
www.sedarplus.ca and the Company's website
at www.elevationgold.com.
Non-IFRS Performance Measures
The following tables represent the calculation of certain
Non-IFRS Financial Measures as referenced in this news release.
Reconciliation of Cash Costs and AISC
|
(in thousands of dollars, except per ounce
figures)
|
Q4
2023
|
Q4
2022(3)
|
|
YTD
2023
|
YTD
2022(3)
|
|
Gold ounces
sold
|
7,754
|
9,060
|
|
31,063
|
31,666
|
|
Cost of
sales
|
$
15,752
|
$
18,882
|
|
$
67,416
|
$ 69,902
|
|
Less:
Depreciation and depletion
|
(3,233)
|
(4,462)
|
|
(13,568)
|
(10,310)
|
|
Add: Refining
and transportation
|
94
|
71
|
|
321
|
293
|
|
Less: Silver and
other bi-product revenue
|
(1,571)
|
(1,491)
|
|
(6,824)
|
(5,739)
|
|
Total Cash
Costs
|
11,042
|
13,000
|
|
47,345
|
54,146
|
|
Sustaining
capital expenditures
|
3,293
|
888
|
|
9,162
|
10,456
|
|
Capitalized
stripping
|
971
|
-
|
|
5,115
|
-
|
|
Accretion
|
400
|
202
|
|
1,468
|
511
|
|
Corporate
administration
|
776
|
712
|
|
3,064
|
3,429
|
|
Total
AISC
|
$
16,482
|
$
14,802
|
|
$
66,154
|
$ 68,542
|
|
Cash Costs per ounce
of gold sold
|
$
1,424
|
$
1,435
|
|
$
1,524
|
$
1,710
|
|
AISC per ounce of
gold sold
|
$
2,126
|
$
1,634
|
|
$
2,130
|
$
2,165
|
|
(3)
|
The Company has
calculated Total Cash Costs, Total AISC, and relevant per ounce of
gold unit rates consistently across each of the periods presented.
Prior period comparable figures for 2022 included adjustments for
heap leach and dore net realizable value write-downs, however, for
the purposes of conforming to the current period calculation, these
adjustments have been excluded in both periods. These impairment
charges and reversals can create fluctuations in reported amounts
in the periods in which they are recorded.
|
Reconciliation of Average Realized Price of Gold per Ounce
Sold
|
(in thousands of dollars, except per ounce
figures)
|
Q4
2023
|
Q4 2022
|
|
YTD
2023
|
YTD 2022
|
|
Gold revenue
|
$
14,860
|
$
15,688
|
|
$
59,853
|
$
56,562
|
|
Gold ounces
sold
|
7,754
|
9,060
|
|
31,063
|
31,666
|
|
Average realized price
per ounce sold
|
$
1,916
|
$
1,732
|
|
$
1,927
|
$
1,786
|
ON BEHALF OF THE BOARD OF ELEVATION GOLD MINING
CORPORATION
"Tim J. Swendseid"
Tim J. Swendseid, CEO of
Elevation Gold Mining Corporation
About Elevation Gold Mining Corporation
Elevation Gold is a publicly listed gold and silver producer,
engaged in the acquisition, exploration, development and operation
of mineral properties located in the United States. Elevation
Gold's common shares are listed on the TSX Venture Exchange
("TSXV") in Canada under the
ticker symbol ELVT and on the OTCQB in the United States under the ticker symbol
EVGDF. The Company's principal operation is its 100% owned
Moss Mine in the Mohave County of Arizona. Elevation also
holds the title to the Hercules exploration property, located in
Lyon County, Nevada.
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.
Cautionary Statement on Forward-Looking Information
Certain of the statements made and information contained
herein is "forward-looking information" within the meaning of
applicable Canadian securities laws. All statements other than
statements of historical facts included in this document constitute
forward-looking information, including but not limited to
statements regarding the Company's plans, prospects and business
strategies; the Company's guidance on the timing and amount of
future production and its expectations regarding the results of
operations; expected costs; permitting requirements and timelines;
timing and possible outcome of Mineral Resource and Mineral Reserve
estimations, life of mine estimates, and mine plans; anticipated
exploration and development activities at the Company's projects;
net present value; design parameters; economic potential;
processing mineralized material; the potential of robust economic
potential at the Moss Mine. Words such as "believe", "expect",
"anticipate", "contemplate", "target", "plan", "goal", "aim",
"intend", "continue", "budget", "estimate", "may", "will", "can",
"could", "should", "schedule" and similar expressions identify
forward-looking statements.
Forward-looking information is necessarily based upon various
estimates and assumptions including, without limitation, the
expectations and beliefs of management, including that the Company
can access financing, appropriate equipment and sufficient labour;
assumed and future price of gold, silver and other metals;
anticipated costs; ability to achieve goals; and assumptions
related to the factors set forth below. While these factors and
assumptions are considered reasonable by the Company as at the date
of this document in light of management's experience and perception
of current conditions and expected developments, these statements
are inherently subject to significant business, economic and
competitive uncertainties and contingencies. Known and unknown
factors could cause actual results to differ materially from those
projected in the forward-looking statements and undue reliance
should not be placed on such statements and information. Such
factors include, but are not limited to: risks inherent in mining,
including, but not limited to risks to the environment, industrial
accidents, catastrophic equipment failures, unusual or unexpected
geological formations or unstable ground conditions, and natural
phenomena such as earthquakes, flooding or unusually severe
weather; uninsurable risks; global financial conditions and
inflation; changes in the Company's share price, and volatility in
the equity markets in general; volatility and fluctuations in metal
and commodity prices; the threat associated with outbreaks of
viruses and infectious diseases, including the COVID-19 virus;
delays or the inability to obtain, retain or comply with permits;
risks related to negative publicity with respect to the Company or
the mining industry in general; health and safety risks;
exploration, development or mining results not being consistent
with the Company's expectations; unavailable or inaccessible
infrastructure and risks related to ageing infrastructure; actual
ore mined and/or metal recoveries varying from Mineral Resource and
Mineral Reserve estimates, estimates of grade, tonnage, dilution,
mine plans and metallurgical and other characteristics; risks
associated with the estimation of Mineral Resources and Mineral
Reserves and the geology, grade and continuity of mineral deposits,
including, but not limited to, models relating thereto; ore
processing efficiency; information technology and cybersecurity
risks; potential for the allegation of fraud and
corruption involving the Company, its customers, suppliers or
employees, or the allegation of improper or discriminatory
employment practices; regulatory investigations, enforcement,
sanctions and/or related or other litigation; estimates of future
production and operations; estimates of operating cost estimates;
the potential for and effects of labour disputes or other
unanticipated difficulties with or shortages of labour or
interruptions in production; risks related to the environmental
regulation and environmental impact of the Company's operations and
products and management thereof; exchange rate fluctuations;
climate change; risks relating to attracting and retaining of
highly skilled employees; compliance with environmental, health and
safety laws; counterparty and credit risks and customer
concentration; litigation; changes in laws, regulations or policies
including, but not limited to, those related to mining regimes,
permitting and approvals, environmental and tailings management,
and labour; internal controls; challenges or defects in title;
funding requirements and availability of financing; dilution; risks
relating to dividends; risks associated with acquisitions and
related integration efforts, including the ability to achieve
anticipated benefits, unanticipated difficulties or expenditures
relating to integration and diversion of management time on
integration; uncertainties relating to interpretation of drill
results and the geology, continuity and grade of mineral deposits;
uncertainty of estimates of capital and operating costs, production
estimates and estimated economic return; uncertainty of meeting
anticipated program milestones; and other risks and uncertainties
including but not limited to those described the Company's public
disclosure documents which are available on SEDAR at www.sedar.com
under the Company's profile. All of the forward-looking statements
made in this document are qualified by these cautionary statements.
Although the Company has attempted to identify important factors
that could cause actual results to differ materially from those
contained in forward-looking information, there may be other
factors that cause results not to be as anticipated, estimated,
forecast or intended and readers are cautioned that the foregoing
list is not exhaustive of all factors and assumptions which may
have been used. Should one or more of these risks and uncertainties
materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those described in
forward-looking information. Accordingly, there can be no assurance
that forward-looking information will prove to be accurate and
forward-looking information is not a guarantee of future
performance. Readers are advised not to place undue reliance on
forward-looking information. The forward-looking information
contained herein speaks only as of the date of this document. The
Company disclaims any intention or obligation to update or revise
forward–looking information or to explain any material difference
between such and subsequent actual events, except as required by
applicable law.
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SOURCE Elevation Gold Mining Corp.
