TSX.V: GBN
SASKATOON, Aug. 28, 2014 /CNW/ - Golden Band Resources
Inc. ("Golden Band" or the "Company") (TSXV: GBN) today reported
results for the fourth quarter 2014 and year ended April 30, 2014.
The Company incurred an adjusted net loss before an impairment
provision on mine, plant and equipment in amount of $36,626,706 in 2014 compared to a loss of
$26,850,868 in 2013, which was
weakened by increase in cash cost per ounce of gold sold and the
suspension of mining activities in January 2014. As at
April 30, 2014 management reassessed
the expected cash flows from its mining projects and considered the
recoverability of its property, plant and equipment. The impairment
provision in amount of $71,000,000
(2013 – Nil) was recognised as a difference between the carrying
value of the mine, mill and equipment and the present value of the
estimated future cash flows. Due to the impairment provision, the
net loss increased to $107,626,706
for 2014 period. No impairment provision was recognised in
2013.
The Company incurred an adjusted net loss before an impairment
provision of $9,099,915 in Q4 2014
compared to a loss of $13,136,216 in
Q4 2013. Due to the impairment provision, the net loss increased to
$80,099,915 in Q4 2014.
A summary of financial results is presented below. All dollar
amounts presented are Canadian dollars, unless otherwise
specified.
SUMMARY QUARTERLY INFORMATION
CDN
$
|
Q4
2014
|
Q3
2014
|
Q2
2014
|
Q1
2014
|
Q4
2013
|
Q3
2013
|
Q2
2013
|
Q1
2013
|
Gold ounces
sold
|
3,1784
|
5,000
|
800
|
-
|
3,532
|
3,882
|
7,920
|
7,929
|
Revenue
($000's)
|
4,2974
|
6,683
|
1,064
|
-
|
$ 5,726
|
$ 6,460
|
$12,746
|
$12,733
|
Cash cost of
sales
($000's)
|
7,876
|
15,329
|
4,572
|
$1,8015
|
$10,476
|
$10,975
|
$12,509
|
$11,026
|
Net loss
before
impairment
provision
|
$(9,100)
|
$(15,631)
|
$(7,654)
|
$(4,242)
|
$(13,136)
|
$(7,381)
|
$(2,754)
|
$(3,580)
|
Impairment
provision
on mine, plant
and
equipment
|
$(71,000)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Net loss
($000's)
|
$(80,100)
|
$(15,631)
|
$(7,654)
|
$(4,242)
|
$(13,136)
|
$(7,381)
|
$(2,754)
|
$(3,580)
|
Net loss per share
1
|
$(0.28)
|
$(0.06)
|
$(0.03)
|
$(0.01)
|
$(0.04)
|
$(0.03)
|
$(0.01)
|
$(0.01)
|
Cash from (used
in)
operations
($000's)
|
$2,566
|
$(8,147)
|
$(8,704)
|
$(8,080)
|
$2,013
|
$1,418
|
$(1,460)
|
$165
|
Total cash costs
per
ounce of gold sold
3
|
$2,478
|
$3,066
|
$5,715
|
-
|
$2,966
|
$2,827
|
$1,579
|
$1,391
|
Average realized
gold
price/ounce
|
$1,352
|
$1,337
|
$1,330
|
-
|
$1,612
|
$1,656
|
$1,601
|
$1,599
|
|
|
1.
|
All per share amounts
are calculated on a weighted average, basic and fully diluted
basis.
|
2.
|
Per share amount is
negligible and has been recorded as nil.
|
3.
|
This is a non-IFRS
measure. See section regarding non-IFRS measures
below.
|
4.
|
Net of 1,124 ounces
of gold sold for the total value of $1,534,327, which was
recovered from Greywacke bulk sample
|
5.
|
Represents operating
costs and the excess of cost of broken ore over net realizable
value, which was written down
|
|
|
During Q4 2014, the Company produced Nil gold ounces compared to
2,383 gold ounces in Q4 2013 due to the suspension of mining
operations in January 2014.
During Q4 2014, the Company sold 3,178 gold ounces at an average
realized gold price of $1,352 per
ounce and generated $4,296,656 of
revenue. This amount is net of 1,124 ounces of gold sold for the
total value of $1,534,327, which was
recovered from Greywacke bulk sample. In Q4 2013 the Company sold
3,532 gold ounces at an average realized gold price of $1,612 per ounce and generated $5,726,324 of revenue.
HIGHLIGHTS FOR 2014
- Gold sales for the year were 8,978 ounces at an average price
of $1,341, for revenue of
$12,043,943.
- The Jolu mill processed 70,639 tonnes of ore at an average
grade of 5.03 g/t gold.
- The declining gold prices over the reporting period and lower
than anticipated ore grades from both the Roy underground mine and
the Golden Heart surface mine, have hindered the Company's ability
to return to profitability despite of restructuring operations and
significant cost cutting. On January 1,
2014, the mining operations, including operations at the Roy
Lloyd and Golden Heart mined and the Jolu mill were suspended for
an indefinite time.
- Production from underground operations at Roy Lloyd mine had a
combined total (high and low grade) of 41,199 tonnes of ore at an
average grade of 6.9 g/t gold.
- Production from open pit operations at Golden Heart totalled
just under 25,254 tonnes of material with a head grade of about 3.2
g/t gold.
- Production from open pit operations at Greywacke (JV) totalled
16,326 tonnes of material with 13,564 tonnes milled at a reconciled
head grade of 6.87 g/t gold. Recoverable gold from the bulk sample
is reported to be 2,533.4 troy oz.
- More efficient stoping methods at Roy Lloyd underground mine to
improve grade and reduce dilution continued.
- Continued strong safety performance. Subsequent to the year end
the Roy Lloyd operation reported 365 days non lost time
accidents.
- No reportable environmental spills during the year.
SUMMARY ANNUAL INFORMATION
|
Year ended April
30,
|
|
2014
|
2013
|
2012
|
Revenue
|
$12,043,943
|
$37,665,266
|
$67,913,921
|
Net Loss before
impairment provision on mine, plant and equipment
|
(36,626,706)
|
$(26,850,868)
|
$(6,424,093)
|
Impairment provision
on mine, plant and equipment
|
(71,000,000)
|
-
|
-
|
Net Loss
|
(107,626,706)
|
$(26,850,868)
|
$(6,424,093)
|
Net Loss per
Share (Basic and Diluted)
|
$(0.38)
|
$(0.09)
|
$(0.02)
|
Total
Assets
|
$30,268,038
|
$88,728,950
|
$89,867,465
|
Total
Liabilities
|
$102,860,842
|
$53,758,577
|
$28,161,044
|
Working
Deficit
|
$(97,201,710)
|
$(13,364,243)
|
$(15,004,133)
|
For year ended April 30, 2014, the
Company sold 8,978 gold ounces at an average realized gold price of
$1,341, for revenue of $12,043,943. This amount is net of 1,124 ounces
of Company's portion of gold sold for the total value of
$1,534,327, which was recovered from
Greywacke bulk sample. For year ended April
30, 2013, the Company sold 23,263 gold ounces at an average
realized gold price of $1,612, for
revenue of $37,665,266.
Cost savings have been initiated through the Company with the
intent to return to full production as soon as feasible. From a
sustainable production platform the Company intends to resume its
efforts towards growth and expansion from its extensive property
portfolio. It will be essential to resume permitting efforts on a
number of our deposits to ensure an adequate supply of mill
feed.
For full details of the Company's financial statements and
management's discussion and analysis for the fourth quarter and
year ended April 30, 2014, please see
the financial reports posted on SEDAR at www.sedar.com.
About Golden Band
Golden Band Resources Inc. is a gold producer operating in
the La Ronge gold belt in northern
Saskatchewan and is listed on the
TSX Venture Exchange in Canada
under the symbol GBN. Commercial production was declared on
April 1, 2011. The Company has
recently suspended mining operations ( see news release of
June 30, 2014) but has been actively
exploring the La Ronge Gold Belt since 1994 and has assembled a
land package of 870 km2, including 13 known gold
deposits and five former producing mines, being Jolu, Decade,
Star Lake, EP and Komis.
On behalf of the Board of Directors of Golden Band Resources
Inc.,
"Paul Saxton"
Paul Saxton, CEO
Caution Regarding Forward-Looking Information and
Statements
This news release includes certain forward-looking statements or
information. All statements other than statements of historical
fact included in this release, including, without limitation,
statements regarding the restructuring of operations, estimates and
costs of production, and other future plans, objectives or
expectations of Golden Band Resources Inc. (Company) are
forward-looking statements that involve various risks and
uncertainties. There can be no assurance that such statements will
prove to be accurate and actual results and future events could
differ materially from those anticipated in such statements.
Important factors that could cause actual results to differ
materially from the Company's plans or expectations include risks
relating to the actual results of operations, current exploration
activities, fluctuating gold prices, possibility of equipment
breakdowns and delays, cost overruns, general economic, market or
business conditions, regulatory changes, timeliness of government
or regulatory approvals and other risks detailed herein and from
time to time in the filings made by the Company. The Company makes
all reasonable efforts to update its corporate information on a
timely basis.
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.
SOURCE Golden Band Resources Inc.