Shares Outstanding: 222,187,746
Trading Symbols: TSX: GGD
OTCQX: GLGDF
HALIFAX, May 7, 2020 /CNW/ - GoGold Resources Inc.
(TSX: GGD) (OTCQX: GLGDF) ("GoGold", "the
Company") is pleased to announce the release of financial
results for the quarter ending March 31,
2020 with revenue of $8.6
million (all amounts are in U.S. dollars) from the sale of
567,013 silver equivalent ounces which provided cash flow from
operations of $1.9 million.
"The Company's operations generated $1.9
million USD of cash flow, net of general and administrative
expenses, in the quarter. Parral had another record
production quarter, which covered corporate general and
administrative expenses and the majority of our exploration
expenditures at Los Ricos," Brad
Langille, President and CEO stated. "With our
$19.1 million cash balance and the
cash flow from our Parral operation, we are well positioned to
execute on our Los Ricos project."
Financial Highlights for the quarter ending March 31, 2020:
- Cash flow from operations of $1.9
million
- Revenue of $8.6 million, at a
realized price per ounce of $15.19
- Record production of 600,697 silver equivalent ounces, an
increase of 42% from prior year
- Cash of $19.1 million, an
increase from $2.4 million at
September 30, 2019
- All in sustaining costs of $15.10
per silver equivalent ounce
- Cash costs of $12.33 per silver
equivalent ounce
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Summarized
Consolidated Financial Information
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Three months ended
Mar 31
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Six months ended
Mar 31
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(in thousands USD,
except per share amounts)
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2020
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2019
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2020
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2019
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Revenue
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$
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8,613
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$
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7,030
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$
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17,906
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$
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10,881
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Cost of sales,
including depreciation
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$
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7,885
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$
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6,678
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$
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15,995
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$
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12,114
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Operating
loss
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$
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(687)
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$
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(787)
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$
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(526)
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$
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(3,508)
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Net (loss)
income1,2
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$
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(1,993)
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$
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2,437
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$
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(1,458)
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$
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10,591
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Basic net (loss)
income (loss) per share
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$
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(0.010)
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$
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0.014
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$
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(0.008)
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$
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0.062
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Cash flow from
operations
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$
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1,910
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$
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(4,560)
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$
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2,697
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$
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(7,764)
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1
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Net loss in the
quarter ended March 31, 2020 includes foreign exchange losses of
$1,567.
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2
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Net income in 2019
includes a $3.8M gain on the fair market value of marketable
securities in the three months ended March 31 and a gain of $11,837
on the sale of the Santa Gertrudis royalty for the 6 months ended
March 31.
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Key Performance
Indicators1
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Three months ended
Mar 31
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Six months ended
Mar 31
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(in thousands USD,
except per ounce amounts)
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2020
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2019
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2020
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2019
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Total tonnes
stacked
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366,808
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478,874
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698,087
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834,487
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AISC per silver
equivalent ounce2
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$
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15.10
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$
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14.08
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$
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14.85
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$
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16.43
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Cash cost per silver
equivalent ounce2
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$
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12.33
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$
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10.75
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$
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12.43
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$
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12.58
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Realized silver
price
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$
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15.19
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$
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14.77
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$
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15.95
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$
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14.56
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1
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Key performance
indicators are unaudited non-GAAP measures
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2
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Gold is converted
using actual realized prices
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This news release should be read in conjunction with the interim
condensed consolidated financial statements for the quarter ended
March 31, 2020, notes to the
financial statements, and management's discussion and analysis for
the quarter ended March 31, 2020,
which have been filed on SEDAR and are available on the Company's
website.
Technical information contained in this news release with
respect to GoGold has been reviewed and approved by Mr.
Bob Harris, P.Eng., who is a
qualified person for the purposes of NI 43-101.
CAUTIONARY STATEMENT:
The securities described herein
have not been, and will not be, registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act"), or
any state securities laws, and may not be offered or sold within
the United States or to, or for
the benefit of, U.S. persons (as defined in Regulation S under the
U.S. Securities Act) except in compliance with the registration
requirements of the U.S. Securities Act and applicable state
securities laws or pursuant to exemptions therefrom. This release
does not constitute an offer to sell or a solicitation of an offer
to buy of any of GoGold's securities in the United States.
This news release may contain "forward-looking information" as
defined in applicable Canadian securities legislation. All
statements other than statements of historical fact, included in
this release, including, without limitation, statements regarding
the Parral tailings project, the Los Ricos project, future
operating margins, future production and processing, and future
plans and objectives of GoGold, constitute forward looking
information that involve various risks and uncertainties.
Forward-looking information is based on a number of factors and
assumptions which have been used to develop such information but
which may prove to be incorrect, including, but not limited to,
assumptions in connection with the continuance of GoGold and its
subsidiaries as a going concern, general economic and market
conditions, mineral prices, the accuracy of mineral resource
estimates, and the performance of the Parral project There can be
no assurance that such information will prove to be accurate and
actual results and future events could differ materially from those
anticipated in such forward-looking information.
Important factors that could cause actual results to differ
materially from GoGold's expectations include exploration and
development risks associated with the GoGold's projects, the
failure to establish estimated mineral resources or mineral
reserves, volatility of commodity prices, variations of recovery
rates, the effects of the global COVID-19 pandemic, and global
economic conditions. For additional information with respect to
risk factors applicable to GoGold, reference should be made to
GoGold's continuous disclosure materials filed from time to time
with securities regulators, including, but not limited to, GoGold's
Annual Information Form. The forward-looking information contained
in this release is made as of the date of this release.
Cautionary non-GAAP Measures and Additional GAAP
Measures
Note that for purposes of this section, GAAP
refers to IFRS. The Company believes that investors use certain
non-GAAP and additional GAAP measures as indicators to assess
mining companies. They are intended to provide additional
information and should not be considered in isolation or as a
substitute for measures of performance prepared with GAAP. Non-GAAP
and additional GAAP measures do not have a standardized meaning
prescribed under IFRS and therefore may not be comparable to
similar measures presented by other companies.
Additional GAAP measures that are presented on the face of the
Company's consolidated statements of comprehensive income include
"Operating income (loss)". These measures are intended to provide
an indication of the Company's mine and operating performance.
"Cash flow from operating activities before changes in non-cash
working capital" is a non-GAAP performance measure that could
provide an indication of the Company's ability to generate cash
flows from operations, and is calculated by adding back the change
in non-cash working capital to "Net cash used in operating
activities" as presented on the Company's consolidated statements
of cash flows. Per ounce measures are calculated by dividing the
relevant mining and processing costs and total costs by the tonnes
of ore processed in the period. "Cash costs per ounce" and "all-in
sustaining costs per ounce" as used in this analysis are non-GAAP
terms typically used by mining companies to assess the level of
gross margin available to the Company by subtracting these costs
from the unit price realized during the period. These non-GAAP
terms are also used to assess the ability of a mining company to
generate cash flow from operations. There may be some variation in
the method of computation of these metrics as determined by the
Company compared with other mining companies. In this context,
"cash costs per ounce" reflects the cash operating costs allocated
from in-process and dore inventory associated with ounces of silver
and gold sold in the period. "Cash costs per ounce" may vary from
one period to another due to operating efficiencies, grade of
material processed and silver/gold recovery rates in the period.
"All-in sustaining costs per ounce" include total cash costs,
exploration, corporate and administrative, share based compensation
and sustaining capital costs. For a reconciliation of non-GAAP and
GAAP measures, please refer to the Management Discussion and
Analysis dated May 6, 2020, for the
quarter ended March 31, 2020, as
presented on SEDAR.
SOURCE GoGold Resources Inc.