TORONTO,
Jan. 8, 2016 /CNW/ - Anaconda
Mining Inc. ("Anaconda" or the "Company") – (TSX: ANX) is pleased
to report its financial and operating results for the three and six
months ended November 30, 2015. All
amounts are expressed in Canadian Dollars unless otherwise noted.
During the second quarter of fiscal 2016, the Company sold 4,605
ounces of gold resulting in $6,798,075 in revenue at an average sales price
of $1,476 per ounce (USD$1,118). Cash cost per ounce sold at the
Point Rousse Project for the three months ended November 30, 2015 was $913 (USD$691).
Earnings before interest, taxes, depreciation and amortization and
other non-cash expenses ("EBITDA") at the project level were
$2,594,851. Net income for the three
months ended November 30, 2015 was
$766,040. As at November 30, 2015, the Company had cash and cash
equivalents of $972,479 and net
working capital of $2,473,693.
President and CEO, Dustin
Angelo, stated, "Anaconda had an exceptional second quarter,
both operationally and financially, buoyed by a quarterly sales
volume record of 4,605 ounces. The continued improvement of the
Pine Cove mill has given us the ability to increase our throughput
significantly compared to last year. The mining staff has done an
excellent job at efficiently mucking and optimizing grade to supply
the mill at the higher tonnage levels. The resulting upturn in our
gold sales volume has helped us drive our cash cost per ounce sold
below $1,000 per ounce for the
quarter and year to date. Moving into the second half of the year,
we are looking to gain further efficiencies through completing our
mill automation project and making further upgrades to equipment in
the mill."
Highlights for the three months ended
November 30, 2015
- As at November 30, 2015, the
Company had cash and cash equivalents of $972,479 and net working capital of $2,473,693.
- For the three months ended November 30,
2015, the Company sold 4,605 ounces of gold, a quarterly
sales volume record, and generated $6,798,075 in revenue at an average sales price
of $1,476 per ounce.
- For the six months ended November 30,
2015, the Company sold 8,561 ounces of gold and generated
$12,583,876 in revenue at an average
sales price of $1,470 per ounce.
- Cash cost per ounce sold at the Pine Cove Project for the three
and six months ended November 30,
2015 was $913 and $996 per ounce respectively.
- All-in sustaining cash cost per ounce sold ("AISC") (see
Reconciliation of Non-GAAP Financial Measures), including corporate
administration, capital expenditures and exploration costs for the
three and six months ended November 30,
2015 was $1,364 and
$1,424 per ounce respectively.
- The mill processed 1,181 tonnes of ore per operating day for
the three months ended November 30,
2015.
- The overall recovery in the mill for the three and six months
ended November 30, 2015 was 87%.
- At the Pine Cove Project, EBITDA (see Reconciliation of
Non-GAAP Financial Measures) for the three and six months ended
November 30, 2015 was $2,594,851 and $4,057,279 respectively.
- On a consolidated basis, EBITDA for the three and six months
ended November 30, 2015 was
$2,032,078 and $2,972,055, respectively.
- Net income for the three and six months ended November 30, 2015 was $766,040 and $581,121 respectively.
- Purchase of property, mill and equipment for the six months
ended November 30, 2015 was
$1,804,419. Key items included mill
automation and equipment upgrades of $590,000, tailing expansion costs of $346,000, polishing pond construction of
$221,000, construction of ore shed
enclosure of $203,000 and development
costs of $380,000.
- Production stripping assets for the six months ended
November 30, 2015 include additions
of $414,397 and amortization of
$37,258.
- Approximately $814,000 was spent
at the Point Rousse Project on exploration for the six months ended
November 30, 2015. The Company's
exploration initiatives included publishing a 43-101 Technical
Report outlining mineral resources at the Stog'er Tight and Pine
Cove deposits, a trenching program adjacent to the Stog'er Tight
deposit to expose near surface mineralization, geological mapping
and trenching program at the Argyle zone and drilling at the Pine
Cove Pond area adjacent to the Pine Cove pit.
- On December 18, 2015, the Company
entered into an agreement (the "Agreement") with Auramet
International LLC ("Auramet") through which Auramet has paid
USD$500,000 (USD$980 per ounce) (the "Prepayment Amount"),
less fees, to Anaconda in exchange for 510 ounces of gold.
Operations overview
During the three months ended November 30, 2015, the gold sales volume of 4,605
ounces represented a 34% increase over the same period in fiscal
2015, due to increased mill throughput, grade and recovery. Ore
tonnes processed increased from 85,515 ore tonnes to 95,629, a 12%
increase compared to the three months ended November 30, 2014. Grade for the three months
ended November 30, 2015 was 1.66 g/t,
a 4% increase from the same period in fiscal 2015. Recovery also
increased from 85% to 87% period over period. Average sales price
for the three months ended November 30,
2015 was $1,476 per ounce
compared to $1,398 per ounce the same
period in fiscal 2015. As a result of the higher sales volume,
gross revenue for the three months ended November 30, 2015 of $6,798,075 was higher period over period by
$1,999,896 or 42%.
The following table summarizes the key operating
metrics for the three and six months ended November 30, 2015 and 2014:
OPERATING
STATISTICS:
|
For the three
months ended
|
For the six months
ended
|
November
30
2015
|
November
30
2014
|
November
30
2015
|
November
30
2014
|
Mill
|
|
|
|
|
Operating
days
|
81
|
81
|
167
|
168
|
Availability
|
88%
|
88%
|
91%
|
92%
|
Dry tonnes
processed
|
95,629
|
85,515
|
192,161
|
169,297
|
Tonnes per 24-hour
period
|
1,181
|
1,056
|
1,151
|
1,008
|
Grade (grams per
tonne)
|
1.66
|
1.60
|
1.64
|
1.70
|
Overall mill
recovery
|
87%
|
85%
|
87%
|
85%
|
Gold sales volume
(troy oz.)
|
4,605
|
3,431
|
8,561
|
7,364
|
Mine
|
|
|
|
|
Operating
days
|
64
|
63
|
142
|
127
|
Ore production
(tonnes)
|
105,947
|
77,489
|
210,225
|
166,728
|
Waste production
(tonnes)
|
529,718
|
457,387
|
1,172,546
|
949,427
|
Total production
(tonnes)
|
635,665
|
534,876
|
1,382,771
|
1,116,155
|
Waste: Ore
ratio
|
5.0
|
5.9
|
5.6
|
5.7
|
MILLING OPERATIONS
The Pine Cove mill
operated for 81 days during the second quarter of fiscal 2016 at an
availability rate of 88% (which included an eight-day mill shutdown
for scheduled annual maintenance). For the three months ended
November 30, 2015, the mill processed
95,629 dry tonnes of ore at an average head grade of 1.66 grams per
tonne. Overall mill recovery was 87%, compared to 85% in the second
quarter of fiscal 2015. The mill's run rate for the quarter was
1,181 tonnes per operating day versus 1,056 in the same period in
the previous fiscal year, a 12% increase.
During the second quarter of fiscal 2016, the
mill had its annual scheduled shutdown for an eight-day maintenance
program. During the shutdown, the primary ball mill was relined,
repairs were completed on the ball mill electric motor, new feed
boxes were installed and several components were installed for the
mill automation project. The repairs to the ball mill motor enabled
it to start up with a higher ball charge, which helped improve
throughput in November to a new monthly high of 1,212 tonnes per
operating day.
MINING OPERATIONS
The mine operated for
64 days in the second quarter of fiscal 2016 producing 105,947
tonnes of ore and 529,718 tonnes of waste. Mining production
increased 19% in the second quarter of fiscal 2016 compared to the
second quarter of fiscal 2015 to accommodate the increased levels
of throughput at the Pine Cove mill.
EXPLORATION
The Company is pursuing a
strategy to leverage the existing infrastructure at the Point
Rousse Project by exploring and developing its mineral licenses and
mining leases in search of two general mineralization styles: Pine
Cove-like, quartz-carbonate-pyrite hosted (2+ g/t) mineralization
(baseload production sources) and higher grade (5+ g/t) quartz vein
± carbonate ± pyrite mineralization. The Company is working on
expanding the current Pine Cove pit resource and bringing the
Stog'er Tight deposit into production to extend the life of the
Point Rousse Project beyond its current three plus years. Anaconda
is also exploring and delineating potentially higher-grade deposits
such as Romeo & Juliet to blend with relatively lower grade
Pine Cove and Stog'er Tight ore. With the high grade "layer" and a
marginal increase to throughput, the Company expects to increase
annual production to approximately 30,000 ounces. The Company
envisions creating an operating complex on the Ming's Bight
Peninsula with multiple pits and trucking the ore back to the Pine
Cove mill.
Consistent with this strategy, in the quarter
ended November 30, 2015, the Company
has made the following advances in exploration:
- Published a 43-101 Technical Report outlining mineral resources
at the Stog'er Tight and Pine Cove deposits;
- Conducted a trenching program adjacent to the Stog'er Tight
deposit to expose near surface mineralization;
- Conducted a geological mapping and trenching program at the
Argyle zone;
- Conducted drilling at the Pine Cove Pond area adjacent to the
Pine Cove pit.
During the course of Anaconda's exploration and
development efforts, three primary gold trends have been identified
within the Point Rousse Project area, with a cumulative prospective
strike length of approximately 20 kilometres. The Company's recent
exploration work, combined with historical results, has brought
more clarity, understanding and confidence to the Company's
geological interpretations and models. The Company believes it has
the potential to discover and develop multiple deposits on the
Ming's Bight Peninsula. As a result, Anaconda believes that the
Point Rousse Project area could double production and continue for
10 years or more. Exploration and development efforts during the
past year has focused entirely on implementing this strategy by
focusing on extending the baseload production centered on Pine Cove
and Stog'er Tight, as well as evaluating a potential high-grade
gold source at Romeo & Juliet and advancing grass roots
projects at Goldenville and Argyle.
Below is a brief overview of the gold trends on
the Ming's Bight Peninsula and Anaconda's exploration efforts
within them with specific reference to the Pine Cove and Stog'er
Tight deposits and recent exploration work on these deposits.
The Scrape Trend
The Scrape Trend
consists of a belt of highly prospective rocks approximately 7
kilometres long and approximately 1 to 2 kilometres wide. It begins
southwest of the Pine Cove mine site and continues eastward to the
community of Ming's Bight. The Scrape Trend includes the Pine Cove
and Stog'er Tight deposits as well as the Romeo & Juliet,
Anaroc and Animal Pond prospects and a new discovery referred to as
the Argyle zone. These gold occurrences align with a fault
delineated by a topographic lineament coincident with a broad. The
Scrape Trend hosts both baseload and high-grade styles of
mineralization.
The Stog'er Tight and Pine Cove Resource
Calculation
On October 22,
2015, the Company announced the results of a 43-101
compliant mineral resource estimate at the Stog'er Tight and Pine
Cove deposits. These resource calculations represent an important
step in the Company's strategy to extend the life of the Point
Rousse Project. With these new resource calculations, the Company
is beginning to build a portfolio of ounces and demonstrate the
potential of the Point Rousse Project.
The following tables summarize the Mineral
Resources and reserves estimate for the Point Rousse Project:
Stog'er Tight
Resources1
|
Category
|
Cut-Off
(g/t)
|
Tonnes
|
Grade
(g/t)
|
Ounces of
gold
|
Indicated
|
0.8
|
204,100
|
3.59
|
23,540
|
Inferred
|
0.8
|
252,000
|
3.27
|
26,460
|
|
Pine Cove
Resources2
|
Category
|
Cut-Off
(g/t)
|
Tonnes
|
Grade
(g/t)
|
Ounces of
gold
|
Indicated
|
0.7
|
1,499,500
|
1.61
|
77,390
|
Inferred
|
0.7
|
220,700
|
1.59
|
11,260
|
|
Pine Cove
Reserves
|
Category
|
Cut-Off
(g/t)
|
Tonnes
|
Grade
(g/t)
|
Ounces of
gold
|
Probable
|
0.7
|
858,855
|
1.46
|
40,400
|
1 – Mineral Resources that are not Mineral Reserves
do not have demonstrated economic viability
2 – The Pine Cove Resource statement includes the Pine
Cove Reserves
The Stog'er Tight deposit trends
east-southeasterly, is exposed over approximately 300 metres of
strike. Mineralized lenses vary from a few, to greater than
10 metres in thickness and to a depth of, approximately, 100
metres. The deposit is characterized by intense carbonate,
albite, pyrite alteration of gabbroic rocks with gold closely
associated with pyrite as at the Pine Cove deposit.
The Pine Cove deposit generally trends easterly
and consists of a series of stacked mineralized zones across 350
metres that vary in strike length from 25 to 250 metres.
Mineralization extends down dip for approximately 800 metres,
though approximately 300 metres of the dip extent has been excluded
from the current resource estimate since it is not currently
feasible for open-pit mining because of its depth (between 175 and
300 metres from surface). The deposit is characterized by
carbonate, quartz, pyrite, albite alteration with gold occurring
with pyrite. The deposit has been continually mined since 2009 with
a current production rate of approximately 15,000 ounces per
year.
The Stog'er Tight Trenching Program
On
December 17, 2015, the Company
announced the results of its fall exploration program on the
Stog'er Tight deposit. The program was focused on continuing to
expand mineral resources along strike and adjacent to the Stog'er
Tight deposit. The program included the excavation of 6
trenches and the collection of 219 one-metre channel samples in the
East, West and Gabbro zones following up on historical mapping and
trenching that indicated the presence of mineralization.
The primary goal of the program was to test the
hypothesis that the East and West zones are continuous with the
Stog'er Tight deposit at surface and that the East Gabbro zone is a
separate zone of mineralization. The deposit has a known,
near-surface strike length of approximately 300 metres. The results
of the trenching and channel sampling program indicate that the
East zone mineralization is contiguous with the Stog'er Tight
deposit over a distance of 100 metres. The West zone was confirmed
to contain mineralization over a strike length of at least 80
metres, but appears to be offset by approximately 25-40 metres
along a fault south of the main trend of the deposit. Consequently,
the strike length of mineralization exposed at surface at Stog'er
Tight, including the deposit and the East and offset West zones, is
now approximately 480 metres. Trenches across the East Gabbro zone
intersected alteration, but did not produce appreciable gold
grades. The table below summarizes the composited grades associated
with the trenching and channel sampling program.
Channel
ID
|
Interval
(m)
|
Grade
(g/t)
|
STtr15-05-A
|
3
|
0.56
|
STtr15-05-B
|
8
|
10.77
|
STtr15-05-C
|
11
|
17.76
|
STtr15-05-D
|
12
|
11.02
|
STtr15-05-E
|
3
|
9.21
|
STtr15-05-F
|
4
|
6.86
|
STtr15-08
|
1
|
1.43
|
STtr15-09
|
12
|
0.98
|
STtr15-10
|
9
|
4.38
|
Composites are 80-95%
of true thickness.
|
|
The recognition of significant near-surface
mineralization immediately along strike from the Stog'er Tight
deposit is a positive sign that near-term growth of mineral
resources is possible. The results of this program enable the
Company to develop a focused diamond drill program targeting
near-surface mineralization with the goal of expanding the mineral
resource at Stog'er Tight.
The Argyle Zone Trenching Program
On
January 8, 2015, the Company
announced the discovery of the Argyle zone through a trenching
program. The new discovery is located approximately 5
kilometres from the Pine Cove mill and consists of two areas of
mineralization located approximately 200 metres apart. On
November 16, 2015, the Company
announced a geological mapping and trenching program to better
understand the geological controls and surface distribution of
mineralization. The mapping indicated that the Argyle zone is
associated with a style of alteration very similar to the Stog'er
Tight deposit – specifically the albitization and carbonatization
of gabbroic rocks. Four trenches were designed to expose the
potential along strike continuation of the two zones of
mineralization.
Drilling at the Pine Cove Deposit
On
November 16, 2015 the Company
announced it initiated a targeted exploration program consisting of
1,000 metres of diamond drilling adjacent to the Pine Cove deposit
focused on the southern margins of the mine in an area known as
Pine Cove Pond. The goal of the drill program was to expand
near-surface mineral resources at the Pine Cove mine adjacent to
the current ultimate pit design. Geological and geophysical data
indicate that the Pine Cove Pond area may contain the easterly and
westerly continuation of the southern portion of the Pine Cove
deposit.
The Goldenville Trend
The Goldenville
Trend is an 8-kilometre long trend of highly prospective rocks
centered on an iron stone unit referred to as the Goldenville
Horizon. The Company believes the trend to be highly prospective
because the trend is thought to contain ironstone hosted gold
deposits including the Corkscrew deposit recently optioned from
Seaside Realty (see press release of August
4, 2015). Mineralization within the Goldenville Trend
is a well-established geological model and the region is known to
host these deposits. The Goldenville Trend has numerous gold
prospects including four small, historical, hand-dug shafts, which
were developed to mine visible gold. Anaconda is exploring the
Goldenville Trend for high-grade deposits on the order of
approximately 250,000 ounces of gold at 5 g/t or more (based on
similar deposits and historical production within the region). If
the Company is successful, it will have a longstanding high-grade
feed source for the Pine Cove mill to layer on top of the baseload
production from other sources like Pine Cove or Stog'er Tight.
No exploration field work was conducted during
the three months ended November 30,
2015.
The Deer Cove Trend
The Deer Cove Trend
is located in the northern part of the Ming's Bight Peninsula and
consists of a belt of prospective rocks approximately 3.5
kilometres in strike length. It is associated with the Deer Cove
thrust fault and includes the Deer Cove deposit as well as various
other showings and prospects.
Historical drill results suggested that the Deer
Cove deposit could be a source of high-grade feed for the Pine Cove
mill. Past development work includes a drill program on the Deer
Cove deposit in 2014 to better outline the distribution of
high-grade gold within the vein and to test the vein down-dip. The
program consisted of 2,090 metres of diamond drilling in 20 holes
(see press release dated February 27,
2015). The results indicate that the deposit does continue at
depth but that the high-grade portion of the deposit was not
present to the depths tested.
No exploration field work was conducted during
the three months ended November 30,
2015. The Company plans to update the deposit model with the
most recent drill results and assess the deposits ability to be
developed and included within the mine plan as a source of
high-grade ore.
Completed and anticipated fiscal 2016
exploration work
Anaconda continues to pursue its strategy
of leveraging the existing infrastructure at the Point Rousse
Project by exploring and developing its mineral licenses and mining
leases in search of the two general mineralization styles. The
Company is attempting to demonstrate a minimum of 10 years of
baseload production as well as develop a high-grade deposit to
layer with the baseload to ultimately expand production to 30,000
ounces per year. Work in fiscal 2016 continues to focus on the Pine
Cove and Stog'er Tight deposits with ancilliary work on other
projects such as Romeo and Juliet and the Argyle zone.
The goal at the Pine Cove deposit is to outline
at least three more years of production by focusing on the
Northwestern Extension and Pine Cove Pond areas. In fiscal 2016,
the Company has conducted drilling programs within the Northwestern
Extension and, more recently, the Pine Cove Pond areas. Following
the evaluation of the Pine Cove Pond drilling and deposit
modelling, the Company will evaluate the potential to bring
mineralization within these areas into the mine plan and if further
work is required to expand or better define these areas of
mineralization.
The goal at the Stog'er Tight deposit is to
outline and begin development of at least five years of
production. Consistent with this goal, the Company conducted
a stripping and channel sampling program to expose and characterize
the deposit and the associated geology. This was followed up with a
small drill program to test the extents of mineralization adjacent
to the deposit. Plans were also developed to conduct metallurgical
test work and to take a bulk sample for processing at the Pine Cove
mill. Following a resource calculation the Company began work to
expand on that resource by testing the limits of surface exposures
of mineralization along strike from the deposit and also within
adjacent areas. Based on the success of the most recent trenching,
the Company is planning a drill program to test the down dip
extents of mineralization exposed at surface, outside of the
current resource.
The Company plans to further evaluate the
resource potential at the Romeo & Juliet prospect and the
Argyle zone. At the Romeo and Juliet prospect, the Company has the
goal of demonstrating the potential to host five years of
production as a high-grade (5+ g/t) source of gold that can be
processed with the baseload production. At Romeo &
Juliet, an in-house resource calculation and review of historical
ground induced polarization data is planned to determine and
develop drill targets with the goal of growing potential resources.
Planned work on the Argyle zone includes the evaluation of recent
trenching and channel sample data. If warranted, plans will be
developed to further test the Argyle zone.
The information contained within the exploration
section above has been reviewed and approved by Paul McNeill, P. Geo., VP Exploration with
Anaconda Mining Inc., a "Qualified Person", under National
Instrument 43-101 Standard for Disclosure for Mineral Projects.
SUBSEQUENT EVENT
On December 18, 2015, the Company entered into an
Agreement with Auramet through which Auramet has paid the
Prepayment Amount, less fees, to Anaconda in exchange for 510
ounces of gold. Anaconda will deliver these ounces to Auramet in 10
deliveries of 51 ounces per month from January to October 2016. The Prepayment Amount was priced
based on a spot price on December 18,
2015 of USD$1,067 per ounce.
Anaconda also agrees to sell 100% of its production to Auramet for
a minimum of one year from the last contractual delivery date
(October 2016). In addition, Auramet
has the option ("Call Options") to purchase 1,800 ounces at a
strike price of USD$1,250 only on the
applicable expiration date of December 30,
2016.
Reconciliation of Non-GAAP Financial
Measures
The Company has included certain non-GAAP
financial measures in this document. These measures are not defined
under IFRS and should not be considered in isolation. The Company
believes that these measures, together with measures determined in
accordance with IFRS, provide investors with an improved ability to
evaluate the underlying performance of the Company. The inclusion
of these measures is meant to provide additional information and
should not be used as a substitute for performance measures
prepared in accordance with IFRS. These measures are not
necessarily standard and therefore may not be comparable to other
issuers.
Adjusted net earnings measures the performance of
the Company, excluding certain impacts which the Company believes
are not reflective of the Company's underlying performance for the
reporting period, such as the impact of foreign exchange gains and
losses, impairment charges, and non-hedge derivative gains and
losses. Although some of the items are recurring, the Company
believes that they are not reflective of the underlying operating
performance of its current business and are not necessarily
indicative of future operating results.
The following table provides a reconciliation of
adjusted net earnings for the three and six months ended
November 30, 2015 and 2014:
|
For the three
months ended
|
For the six
months ended
|
|
November
30
|
November
30
|
November
30
|
November
30
|
|
2015
|
2014
|
2015
|
2014
|
|
$
|
$
|
$
|
$
|
Net income
(loss)
|
766,040
|
(3,170,174)
|
581,121
|
(3,345,984)
|
|
|
|
|
|
Adjusting
items:
|
|
|
|
|
|
Foreign exchange loss
(gain)
|
(20,312)
|
(281)
|
(17,461)
|
(10,165)
|
|
Unrealized loss
(gain) on forward sales contract derivative
|
(29,423)
|
67,819
|
(26,615)
|
52,597
|
|
Write down of Chilean
assets
|
-
|
2,260,158
|
-
|
2,260,158
|
|
Reclamation
expense
|
24,988
|
14,358
|
30,030
|
28,716
|
Total
adjustments
|
(24,747)
|
2,342,054
|
(14,046)
|
2,331,306
|
Adjusted net
earnings (loss)
|
741,293
|
(828,120)
|
567,075
|
(1,014,678)
|
Cash cost per ounce sold is cost of sales before
depreciation divided by gold ounces sold. All-in sustaining cash
cost per ounce sold is cash cost, corporate administration,
purchase of property, mill and equipment and purchase of
exploration and evaluation assets divided by gold ounces sold.
The following table provides a reconciliation of
cash cost per ounce sold and all-in sustaining cash cost per ounce
sold for the three and six months ended November 30, 2015 and 2014:
|
For the three
months ended
|
For the six
months ended
|
|
November
30
|
November
30
|
November
30
|
November
30
|
|
2015
|
2014
|
2015
|
2014
|
Cost of
sales
|
5,462,305
|
5,137,634
|
10,839,106
|
10,665,663
|
Less: Depletion and
depreciation
|
(1,259,081)
|
(952,923)
|
(2,312,509)
|
(2,033,556)
|
Cash operating
cost
|
4,203,224
|
4,184,711
|
8,526,597
|
8,632,107
|
Corporate
administration
|
546,286
|
472,330
|
1,043,430
|
976,826
|
Purchase of property,
mill and equipment
|
1,043,515
|
813,512
|
1,804,419
|
1,130,931
|
Purchase of
exploration and evaluation assets
|
489,888
|
679,017
|
814,090
|
1,101,048
|
All-in cash
cost
|
6,282,913
|
6,149,570
|
12,188,536
|
11,840,912
|
|
|
|
|
|
Gold ounces
sold
|
4,605
|
3,431
|
8,561
|
7,364
|
Cash cost per
ounce sold
|
913
|
1,220
|
996
|
1,172
|
All-in sustaining
cash cost per ounce sold
|
1,364
|
1,792
|
1,424
|
1,608
|
EBITDA is earnings before finance expense,
foreign exchange loss (gain), unrealized gain on forward sales
contract derivative, share-based compensation, income tax recovery
and depreciation and depletion.
Point Rousse Project EBITDA is EBITDA before
corporate administration, other revenues and expenses and write
down of Chilean assets.
The following table provides a reconciliation of
EBITDA for the three and six months ended November 30, 2015 and 2014:
|
For the three
months ended
|
For the six
months ended
|
|
November
30
|
November
30
|
November
30
|
November
30
|
|
2015
|
2014
|
2015
|
2014
|
|
$
|
$
|
$
|
$
|
Net income
(loss)
|
766,040
|
(3,170,174)
|
581,121
|
(3,345,984)
|
|
|
|
|
|
Add back:
|
|
|
|
|
Finance
expense
|
3,111
|
-
|
3,111
|
336
|
Foreign exchange loss
(gain)
|
(20,312)
|
(281)
|
(17,461)
|
(10,165)
|
Unrealized loss
(gain) on forward sales contract derivative
|
(29,423)
|
67,819
|
(26,615)
|
52,597
|
Share-based
compensation
|
86,581
|
51,078
|
167,390
|
99,197
|
Income tax expense
(recovery)
|
(33,000)
|
(45,865)
|
(48,000)
|
(108,865)
|
Depletion and
depreciation
|
1,259,081
|
952,923
|
2,312,509
|
2,033,556
|
EBITDA
|
2,032,078
|
(2,144,500)
|
2,972,055
|
(1,279,328)
|
Corporate
administration
|
546,286
|
472,330
|
1,043,430
|
976,826
|
Other revenues and
expenses
|
16,487
|
25,480
|
41,794
|
(279,972)
|
Point Rousse
Project EBITDA
|
2,594,851
|
613,468
|
4,057,279
|
1,677,684
|
ABOUT ANACONDA
Headquartered in Toronto, Canada,
Anaconda is a growth oriented, gold mining and exploration company
with a producing project, called the Point Rousse Project, and
approximately 6,300 hectares of exploration property on the Ming's
Bight Peninsula located in the Baie Verte Mining District in
Newfoundland, Canada. Since 2012,
Anaconda has increased its property control by almost ten-fold. It
is currently exploring three primary, prospective gold trends,
which have approximately 20 kilometres of cumulative strike length
and include four deposits and numerous prospects and showings, all
within 8 kilometres of the Pine Cove mill. The Company's plan is to
discover and develop more resources within the project area and
double annual production from its current rate of approximately
15,000 ounces to 30,000 ounces.
FORWARD-LOOKING STATEMENTS
This document contains or refers to
forward-looking information. Such forward-looking information
includes, among other things, statements regarding targets,
estimates and/or assumptions in respect of future production, mine
development costs, unit costs, capital costs, timing of
commencement of operations and future economic, market and other
conditions, and is based on current expectations that involve a
number of business risks and uncertainties. Factors that could
cause actual results to differ materially from any forward-looking
statement include, but are not limited to: the final approval of
the private placement by the Toronto Stock Exchange; the grade and
recovery of ore which is mined varying from estimates; capital and
operating costs varying significantly from estimates; inflation;
changes in exchange rates; fluctuations in commodity prices; delays
in the development of the any project caused by unavailability of
equipment, labour or supplies, climatic conditions or otherwise;
termination or revision of any debt financing; failure to raise
additional funds required to finance the completion of a project;
and other factors. Additionally, forward-looking statements look
into the future and provide an opinion as to the effect of certain
events and trends on the business. Forward-looking statements may
include words such as "plans," "may," "estimates," "expects,"
"indicates," "targeting," "potential" and similar expressions.
These forward-looking statements, including statements regarding
Anaconda's beliefs in the potential mineralization, are based on
current expectations and entail various risks and uncertainties.
Forward-looking statements are subject to significant risks and
uncertainties and other factors that could cause actual results to
differ materially from expected results. Readers should not place
undue reliance on forward-looking statements. These forward-looking
statements are made as of the date hereof and we assume no
responsibility to update them or revise them to reflect new events
or circumstances, except as required by law.
SOURCE Anaconda Mining Inc.