Atna Resources Ltd. Reports Fourth Quarter and 2014 Fiscal Year Results

GOLDEN, Colo., March 17, 2015 /CNW/ -- Atna Resources Ltd. ("Atna" or the "Company") (TSX:ATN / OTCQB:ATNAF) today reported audited financial and operating results for the Company's year ended December 31, 2014. Unless otherwise designated, all amounts are in U.S. dollars. Additional details may be found in the MD&A and Financials filed on SEDAR and EDGAR or on our website at www.atna.com.

2014 Highlights

Financial Results

  • Adjusted EBITDA was $5.1 million in 2014, compared to $5.4 million in 2013.
  • Net working capital (current assets less current liabilities) as of December 31, 2014 was $12.1 million, inclusive of $2.2 million of cash. 
  • Operating cash flow in 2014, exclusive of changes in working capital, was $0.4 million, while net cash used in operating activities was $0.6 million.
  • Total liabilities were reduced by $2.1 million in 2014, a reduction of 6.0 percent.
  • In January 2014, the Company refinanced $22.0 million of current obligations with a 2-year credit facility, and in August 2014, the Company closed a private placement of equity netting $1.8 million.
  • A net loss of $15.4 million, ($0.08) per weighted average share was recognized and included a $1.0 million impairment of unamortized development costs and an inventory write-down of $4.2 million.

Operating Results

  • Gold ounces sold increased 3 percent to 32,800 ounces in 2014 from 31,700 ounces in 2013.
  • Revenue declined 8 percent to $41.5 million in 2014 due to an 11 percent decrease in gold price, partially offset by increased gold sales.
  • The Briggs Mine generated $6.7 million in operating cash flow in 2014, and the Pinson Underground Mine, operating with one crew in the second half of 2014, used $1.5 million in cash for operating activities in the full-year 2014.
  • General and administrative, exploration, and care and maintenance expenses in combination declined $2.0 million or 30 percent.
  • The average cash cost per ounce remained about the same as in 2013, decreasing less than 1 percent, to $1,037 per ounce.
  • The Company's average all-in sustaining cost (AISC) decreased by 4 percent to $1,193 per ounce in 2014 from $1,249 in 2013.
  • Pinson Underground re-started in June 2014, and a total of 9,010 tons of ore at an average grade of 0.402 ounce per ton were mined, containing approximately 3,620 ounces of gold. Gold ore sales contained approximately 2,950 ounces, while payable ounces sold were 1,950.
  • Atna completed an NI 43-101 compliant Technical Report titled "Pinson Project, Preliminary Feasibility Study, Humboldt County, Nevada" detailing resources and reserves for both the Pinson Underground and the Mag Pit.

Highlights for Fourth Quarter 2014

  • Revenues totaled $10.8 million in Fourth Quarter 2014, an increase of 7 percent relative to revenues of $10.1 million in Third Quarter 2014.
  • Gold ounces sold increased 14 percent to approximately 8,922 ounces; however the average selling price declined 6 percent to $1,204 per ounce.
  • Pinson Underground's cash cost per ounce decreased from $1,382 in the Third Quarter to $933 in the Fourth Quarter as gold production increased 6 percent to 1,800 ounces.  AISC decreased from $1,816 to $1,077 per ounce, a decrease of 41 percent, in Fourth Quarter 2014.  
  • Briggs generated $0.1 million in operating cash flow in Fourth Quarter 2014, while Pinson Underground generated $0.3 million in operating cash flow.
  • Cash flows from investing activities provided the Company $8.8 million net, principally from the sale of Reward and Clover for $10.0 million.
  • $5.0 million of cash was used to prepay debt and the interest accrued on it, without prepayment penalty.
  • A net loss of $4.5 million, exclusive of impairments and write-downs, was recognized in Fourth Quarter 2014.

Outlook

The Company is targeting production of 55,000 to 65,000 ounces of gold, combined, from both Briggs and Pinson in 2015. The consolidated average cash cost of gold is expected to be between $800 and $900 per ounce sold, and all-in sustaining cost (AISC) is expected to be between $890 and $990 per ounce sold in 2015.

Qualified Person

This press release was prepared under the supervision and review of William Stanley, V.P. Exploration of Atna, a Registered Member of the Society for Mining, Metallurgy, and Exploration (No. 3069054), a Licensed Geologist and qualified person, as defined in NI 43-101, who has verified the authenticity and validity of the technical information contained within this news release.

About Atna Resources

Atna is a gold production and development company with a focus in the western US. Atna is producing gold at its Briggs Mine located in Inyo County, California. The Company owns the permitted Pinson underground development stage gold mine near Winnemucca, Nevada and the permitted Reward gold project near Beatty, Nevada. Pre-feasibility study work is being conducted at the Pinson open pit project and at the Columbia gold project located near Lincoln, Montana.   

For additional information on Atna, its mining, development and exploration projects, please visit our website at www.atna.com.

This press release contains certain "forward-looking statements," as defined in the United States Private Securities Litigation Reform Act of 1995, and within the meaning of Canadian securities legislation. Forward-looking statements are statements that are not historical fact. They are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include: the Company might encounter problems such as the significant depreciation of metals prices; accidents and other risks associated with mining exploration and development operations; the risk that the Company will encounter unanticipated geological factors; the Company's need for and ability to obtain additional financing; the possibility that the Company may not be able to secure permitting and other governmental clearances necessary to carry out the Company's exploration programs; and the other risk factors discussed in greater detail in the Company's various filings on SEDAR (www.sedar.com) with Canadian securities regulators and its filings with the U.S. Securities and Exchange Commission, including the Company's 2013 Form 20-F dated March 13, 2015.

Cautionary Note to U.S. Investors --- The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this report, such as "measured," "indicated," "inferred," and "resources," that the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC.

FOR FURTHER INFORMATION, CONTACT:

James Hesketh, President and CEO - (303) 278-8464
Valerie Kimball, Investor Relations - toll free (877) 692-8182
www.atna.com

 

ATNA RESOURCES LTD. AND SUBSIDIARIES

SUMMARIZED CONSOLIDATED FINANCIAL INFORMATION

(US dollars, IFRS basis)

(Audited)














 December 31, 


 December 31, 







2014


2013



BALANCE SHEETS









ASSETS









Current assets




$       21,780,600


$       20,296,500



Noncurrent assets




74,464,800


91,980,800



Total assets




96,245,400


112,277,300



LIABILITIES AND SHAREHOLDERS' EQUITY









Current liabilities




9,682,200


27,336,300



Notes payable - long term




18,806,000


1,430,400



Noncurrent liabilities




5,178,000


7,000,600



Shareholders' equity




62,579,200


76,510,000



Total liabilities and shareholders' equity




$       96,245,400


$      112,277,300














 Three Months Ended 


 Twelve Months Ended 



 December 31, 


 December 31, 



2014


2013


2014


2013

STATEMENTS OF OPERATIONS









Revenues


$       10,791,100


$       10,699,000


$       41,484,300


$       45,035,100

Cost of sales


8,985,800


7,996,500


34,226,000


33,299,800

Depreciation and amortization, cost of sales


2,205,600


2,279,600


7,992,400


7,015,100

Adjust inventory to net realizable value, cost of sales


3,018,900


1,830,100


4,150,400


2,595,600

Impairment of non-current assets, net


1,010,800


33,090,100


935,300


33,090,100

Depreciation - G&A


10,900


57,600


132,300


173,500

General and administrative


807,800


1,172,300


3,588,500


4,842,100

Exploration


11,000


318,100


308,400


703,900

Property maintenance expense


93,200


257,900


797,400


1,132,200

Provision for site restoration


676,700


(568,600)


676,700


(568,600)

Interest and other expense, net


2,490,000


1,828,100


4,034,500


2,342,700

Net income before income tax


(8,519,600)


(37,562,700)


(15,357,600)


(39,591,300)

Income tax expense


(2,600)


(10,604,700)


(2,600)


(10,028,300)

Net loss


(8,522,200)


(48,167,400)


(15,360,200)


(49,619,600)

Other comprehensive (loss) income 


(1,600)


433,900


(1,480,300)


962,200










Basic and diluted (loss) income per share


$               (0.04)


$               (0.26)


$               (0.08)


$               (0.32)

Basic and diluted weighted-average shares outstanding


207,291,978


183,379,554


196,524,869


155,721,306










CASH FLOWS









Cash and cash equivalents, beginning of period


$            644,000


$         2,822,100


$            789,900


$       19,342,900

Net cash (used in) provided by operating activities


(1,030,100)


1,521,500


(643,200)


8,307,100

Net cash provided by (used in) investing activities


8,768,700


(1,835,100)


3,483,500


(22,459,000)

Net cash used in financing activities


(6,219,000)


(1,706,400)


(1,450,000)


(4,233,400)

Effect of exchange rate changes on cash


(1,400)


(12,200)


(18,000)


(167,700)

Cash and cash equivalents, end of period


$         2,162,200


$            789,900


$         2,162,200


$            789,900




























Adjusted EBITDA and operating cash flows exclusive of changes in working capital




For the years ended December 31,







2014


2013



Net loss




$      (15,360,200)


$      (49,619,600)



Deferred income tax expense adjustments




-


10,327,500



Loss on asset disposals




1,690,400


330,600



Unrealized loss (gain) on derivatives




14,500


(1,080,800)



Provision for site restoration




676,700


(568,600)



Impairment, net of recoveries, of non-current assets




935,300


33,090,100



Current tax expense (recovery)




2,600


(299,200)



Interest expense




4,844,100


3,445,600



Depreciation and amortization, cost of sales




7,992,400


7,015,100



Adjust inventory to net realizable value, cost of sales, otherwise reportable as depreciation




4,150,400


2,595,600



Depreciation - G&A only




132,300


173,500



EBITDA




$         5,078,500


$         5,409,800












Net cash (used in) provided by operating activities




$          (643,200)


$         8,307,100



Cash (used for) provided by funding of Changes in operating assets and liabilities




(1,033,300)


4,068,100



Operating cash flows exclusive of changes in working capital




$            390,100


$         4,239,000



 

SOURCE Atna Resources Ltd.

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