GoGold Sold 413,941 Silver Equivalent Ounces at a Cash Cost of $6.70 for Revenue of $6.9 Million

Trading Symbol: TSX: GGD
Shares Outstanding: 171,376,481

HALIFAX, Feb. 13, 2017 /CNW/ - GoGold Resources Inc. (TSX: GGD) ("GoGold", "the Company") is pleased to announce the release of financial results for the quarter ending December 31, 2016. GoGold recorded revenue of $6.9 million from the sale of 413,941 silver equivalent ounces with a cash cost per silver equivalent ounce of $6.70, with an operating income of $2.175 million for the quarter (All amounts are in U.S. dollars).  

Financial Highlights for the quarter ending December 31, 2016:

  • Revenue of $6.856 million from the sale of 413,941 silver equivalent ounces, a realized price of $16.56 per silver equivalent ounce
  • Operating income of $2.175 million
  • Cash flow from operations before changes in non-cash working capital of $3 million, or 2 cents per basic share
  • Cash cost per silver equivalent ounce of $6.70
  • All in sustaining cost per silver equivalent ounce of $9.16
  • Produced 403,545 silver equivalent ounces

GoGold produced 4,249 gold ounces and 102,371 silver ounces for a total of 403,545 silver equivalent ounces in the quarter ending December 31, 2016.  The Company's Parral project contributed 1,539 gold and 91,022 silver ounces for a total of 200,063 silver equivalent ounces.  Adjustments made to the heap leach process in November began to take effect in the current quarter and management is confident that they will see continued increases in the Parral production in the upcoming quarter.  The Company is in the final process of commissioning a previously announced sulphidization, acidification, recycling and thickening ("SART") plant which will lower cyanide costs by recycling of cyanide within the process, as well as providing revenues from base metals.

The Santa Gertrudis high grade project produced 2,710 ounces of gold and 11,349 ounces of silver, for a total of 203,482 silver equivalent ounces.  The Company continues to process the high grade material from the Santa Gertrudis project while construction on the vat leach plant for the feasibility study continues to progress, with forms in place and concrete ready to be poured for the vats.

 

Summarized Consolidated Financial Information

Three months ended December 31

(in thousands USD, except per share amounts)

2016

2015

Revenue

$

6,856

$

3,001

Cost of sales

$

3,680

$

2,176

Operating income (loss)

$

2,175

$

(268)

Net income (loss)

$

662

$

(2,349)

Basic net income (loss) per share

$

0.00

$

(0.01)

Cash flow from operations, before changes in non-cash working capital

$

2,813

$

123

Cash cost per silver equivalent ounce1,2

$

6.70

$

6.54

All in sustaining cost per silver equivalent ounce1,2

$

9.16

$

10.23

Realized silver price2

$

16.56

$

13.68

1Gold is converted using actual market metal price for the period (2016 – 71, 2015 – 77) 2Unaudited non-IFRS measure

 

This news release should be read in conjunction with the condensed consolidated interim financial statements for the three months ended December 31, 2016, notes to the financial statements, and management's discussion and analysis for the three months ended December 31, 2016, 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 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 ability to satisfy all conditions to funding of the second tranche under the credit agreement.  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 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-IFRS Measures and Additional IFRS Measures
The Company believes that investors use certain non-IFRS and additional IFRS 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 IFRS. Non-IFRS and additional IFRS measures do not have a standardized meaning prescribed under IFRS and therefore may not be comparable to similar measures presented by other companies.

Additional IFRS 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-IFRS 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 ounces of metal sold in the period. "Cash costs per ounce" and "all-in sustaining costs per ounce" as used in this analysis are non-IFRS 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-IFRS 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-IFRS and IFRS measures, please refer to the Management Discussion and Analysis dated February 8, 2017, for the three months ended December 31, 2016, as presented on SEDAR.

 

SOURCE GoGold Resources Inc.

For further information: Steve Low, Corporate Development, GoGold Resources Inc., T: 416 855 0435, Email : steve@gogoldresources.com, Or visit : www.gogoldresources.com

RELATED LINKS
http://www.gogoldresources.com/

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890