Scorpio Gold Reports Fourth Quarter and Provides Year-End Financial Results for 2013
18 April 2014 - 6:52AM
Marketwired
Scorpio Gold Reports Fourth Quarter and Provides Year-End Financial
Results for 2013
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Apr 17, 2014) -
Scorpio Gold Corporation ("Scorpio Gold" or the "Company")
(TSX-VENTURE:SGN) is pleased to announce its financial results for
the fourth quarter ("Q4") and year ended December 31, 2013. This
press release should be read in conjunction with the Company's
consolidated financial statements for the year ended December 31,
2013 and Management's Discussion & Analysis ("MD&A") 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:
|
Q4 2013 |
|
Q4 2012 |
2013 |
|
2012 |
|
$ |
|
$ |
$ |
|
$ |
Revenue ($000's) |
13,739 |
|
15,498 |
54,646 |
|
52,615 |
Mine operating earnings ($000's) |
1,819 |
|
5,041 |
10,841 |
|
17,086 |
Net earnings (loss) ($000's) |
(1,976 |
) |
3,673 |
(6,843 |
) |
12,601 |
Basic and diluted earnings (loss) per share |
(0.02 |
) |
0.02 |
(0.05 |
) |
0.07 |
Adjusted net earnings(1) (000's) |
774 |
|
4,515 |
6,346 |
|
13,759 |
Adjusted basic and diluted net earnings per share(1) |
0.00 |
|
0.03 |
0.03 |
|
0.08 |
Adjusted EBITDA(1) (000's) |
4,829 |
|
7,996 |
25,248 |
|
25,710 |
Adjusted basic and diluted EBITDA per share(1) |
0.03 |
|
0.05 |
0.14 |
|
0.15 |
Cash flow from operating activities (000's) |
4,829 |
|
6,122 |
22,894 |
|
23,078 |
Adjusted cash flow from operating activities(1) (000's) |
4,829 |
|
6,122 |
22,894 |
|
24,745 |
Total cash cost per ounce of gold sold(1) |
732 |
|
815 |
734 |
|
890 |
Gold ounces produced(2) |
11,348 |
|
10,812 |
39,160 |
|
32,066 |
(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) Production and revenue numbers for Q4 of 2012 include
approximately 1,878 ounces of gold and 759 ounces of silver that
were part of a sale of loaded carbon to Waterton Global Value L.P.,
a company related to Scorpio Gold. |
Peter Hawley, the Company's CEO, comments, "Our 2103 financial
results are solid despite a very challenging year for the gold
sector. The lower gold price realized in 2013 created our biggest
challenge resulting in a loss for the year due to a non-cash
impairment charge, but the Mineral Ridge team responded with record
high production levels, driving the cost per ounce of gold sold
down to record low levels. The mine is running very well and we are
forecasting production of 40,000 to 45,000 ounces of gold in 2014
at a conservative estimate of cash costs of $800 to $850 per ounce
of gold sold."
2013 HIGHLIGHTS AND SUBSEQUENT EVENTS
- 39,160 ounces of gold produced at the Mineral Ridge mine,
compared to 32,066 ounces during 2012, an increase of 22%.
- Increased revenue of $54.6 million compared to $52.6 million
during 2012, mainly due to a 24% increase in ounces of gold sold,
offset by a lower average gold price during 2013.
- Improved total cash cost per ounce of gold sold(1) of $734
compared to $890 during 2012. This reduction of 18% is mainly
attributable to higher production levels.
- Mine operating earnings(1) of $10.8 million compared to $17.1
million during 2012, mainly due to increased depletion and
amortization during 2013, as a result of increased production
levels.
- Net loss of $6.8 million ($0.05 basic and diluted per share)
after non-cash impairment charges of $12.6 million ($0.08 basic and
diluted per share), compared to net earnings of $12.6 million
($0.07 basic and diluted per share) during 2012.
- Adjusted net earnings(1) of $6.3 million ($0.03 basic and
diluted per share) compared to $13.8 million ($0.08 basic and
diluted per share) during 2012, mainly due to increased depletion
and amortization during 2013.
- Adjusted EBITDA(1) of $25.2 million ($0.14 basic and diluted
per share) compared to $25.7 million ($0.15 basic and diluted per
share) during 2012.
- Adjusted cash flow from operating activities(1) of $22.9
million compared to $24.7 million during 2012.
- Receipt of approval for the new plan of operations at the
Mineral Ridge mine in February 2014 which allows for expansion of
the Mary pit.
- Sale of the Pinon property on March 5, 2014, with approximately
$5.2 million of the proceeds applied to reduce the Company's long
term debt (see the Company's news release of March 5, 2014 for more
details).
FOURTH QUARTER 2013 ("Q4") HIGHLIGHTS
- 11,348 ounces of gold produced at the Mineral Ridge mine
compared to 10,812 ounces in Q4 of 2012, an increase of 5%.
- Revenue of $13.7 million compared to $15.5 million during Q4 of
2012. This 12% decrease is mainly due to the significant decrease
in gold price for ounces sold despite an 18% increase in gold
ounces sold during Q4 of 2013.
- Improved total cash cost per ounce of gold sold(1) of $732
compared to $815 during Q4 of 2012. This reduction of 14% is mainly
attributable to higher production levels during Q4 of 2013.
- Improved cash cost per ounce and higher production levels did
not completely offset the decrease in the average gold price which
consequently negatively impacted the following:
- Mine operating earnings(1) of $1.8 million compared to $5.0
million during Q4 of 2012.
- Net loss of $2.0 million ($0.02 basic and diluted per share),
compared to earnings of $3.7 million ($0.02 basic and diluted per
share) during Q4 of 2012. During Q4 of 2013 a non-cash impairment
charge of $2.7 million has been recorded.
- Adjusted net earnings(1) of $0.8 million ($0.00 basic and
diluted per share) compared to $4.5 million ($0.03 basic and
diluted per share) during Q4 of 2012.
- Adjusted EBITDA(1) of $4.8 million ($0.03 basic and diluted per
share) compared to $8.0 million ($0.05 basic and diluted per share)
during Q4 of 2012.
- Adjusted cash flow from operating activities(1) of $4.8 million
compared to $6.1 million in Q4 of 2012.
|
(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. |
NON-IFRS MEASURES
The discussion of financial results in this press release
includes reference to Adjusted EBITDA, Cash Cost per Ounce of Gold
Sold, Adjusted Cash Flow from Operating Activities 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 year ended December 31, 2013 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 Waterton Global Value L.P. (30%), and is currently
entitled to receive 80% of cash flow generated. Mineral Ridge is
currently in production as a conventional open pit mining and heap
leach operation. The property is host to multiple gold-bearing
structures, veins and bodies at various exploration, development
and production stages. Scorpio Gold also owns the Goldwedge
advanced exploration-stage property and processing facility in
Manhattan, Nevada. The Company is assessing its exploration plans
for the Goldwedge property as well as the potential for toll
milling at the Goldwedge plant currently permitted for 400 ton per
day.
Scorpio Gold's CEO, 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
Peter J. Hawley, CEO
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", "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 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 forward-looking 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 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;
other risks of the mining industry and those risk factors outlined
in the Company's Management 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
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.
Scorpio Gold CorporationSteve RoebuckPresident(819)
825-7618www.scorpiogold.comTorrey Hills CapitalJim
MacdonaldInvestor Relations(858) 456-7300jm@sdthc.com
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