Antioquia Gold Reports Second Quarter 2023 Financial Results

Rhea-AI Summary

Antioquia Gold Inc. reports a decrease in financial performance for Q2 2023 compared to the previous period. Gold production decreased by 26%, total revenues decreased by 20%, and adjusted EBITDA decreased by 94%. The average realized gold price increased by 6%, while cash cost per ounce sold increased by 36.3% and AISC per ounce sold increased by 79.6%.

Positive

• Gold production decreased by 26% in Q2 2023 compared to Q2 2022. The average realized gold price increased by 6% in Q2 2023. The company has continued improvements in mine planning and mining operations, process plant optimization.

Negative

• Total revenues decreased by 20% in Q2 2023 compared to Q2 2022. Adjusted EBITDA decreased by 94% in Q2 2023. Cash cost per ounce sold increased by 36.3% in Q2 2023. AISC per ounce sold increased by 79.6% in Q2 2023.

Calgary, Alberta--(Newsfile Corp. - August 17, 2023) - Antioquia Gold Inc. (TSXV: AGD) (OTC Pink: AGDXF) ("Antioquia Gold" or the "Corporation") is pleased to announce a summary of its financial results for the second quarter ended June 30, 2023. All amounts are in Canadian dollars, unless otherwise indicated.

For the second quarter of 2023, the company has shown a decrease financial performance in comparison to the previous period for the three months ended June 30,2023. The Company has continued improvements in mine planning and mining operations, process plant optimization.

The main operational and financial results for the second quarter 2023 are as follows ⁽¹⁾:

• Gold production for the second quarter of 2023 was 8,926 ounces compared to 12,090 ounces for the second quarter of 2022 (a 26% decrease).
• Total revenues for the second quarter of 2023 were $24.4M compared to $30.6M for the second quarter of 2022 (a 20% decrease).
• Adjusted EBITDA ⁽²⁾ for the second quarter of 2023 was $0.4M compared to $7.3M for the second quarter of 2022 (a 94% decrease).
• Net loss for the second quarter of 2023 was $5.8M compared to an income of $0.4M for the second quarter of 2022 (a 1,332% decrease).
• The average realized gold price ⁽²⁾ for the second quarter of 2023 was US$1,838/ounce compared to US$1,734/ounce for the second quarter of 2022 (a 6% increase).
• Cash cost per ounce sold ⁽²⁾ for the second quarter of 2023 was US$1,802 compared to $1,322 for the second quarter 2022 (a 36.3% increase).
• AISC per ounce sold ⁽²⁾ for the second quarter of 2023 was US$2,502 compared to $1,393 for the second quarter of 2022 (a 79.6% increase).

Summary of main operating and financial results Q2 2023

$CAD 000's	For the three months ended June 30,		For the six months ended June 30,		For the Years ended
	2023	2022	2023	2022	2022	2021	2020
Plant Process data
Gold produced (ounces)	8,926	12,090	19,120	24,856	48,955	37,867	20,301
Gold sold (ounces)	9,681	13,489	21,362	24,500	47,848	38,634	18,413
Operating data (2) (Currency: CAD)
Average realized gold price ($/oz sold)	2,469	2,213	2,387	2,191	2,153	2,097	2,295
Total cash costs ($/oz sold)	2,419	1,688	2,075	1,581	1,656	1,532	1,642
AISC ($/oz sold)	3,359	1,778	2,530	1,692	1,816	1,702	1,731
All-in costs ($/oz sold)	3,378	1,786	2,541	1,725	1,838	1,744	1,800
Operating data (2) (Currency: USD)
Average realized gold price ($/oz sold)	1,838	1,734	1,772	1,723	1,654	1,673	1,711
Total cash costs ($/oz sold)	1,802	1,322	1,539	1,244	1,273	1,222	1,224
AISC ($/oz sold)	2,502	1,393	1,877	1,331	1,396	1,358	1,290
All-in costs ($/oz sold)	2,515	1,399	1,886	1,356	1,412	1,391	1,342
Financial data (Currency: CAD 000's)
Revenue	24,403	30,563	52,049	55,001	105,274	83,233	43,905
Cost of sales	26,935	27,166	(50,816)	(47,443)	93,348	71,786	37,488
Gain (Loss) from mine operations	(2,532)	3,397	1,233	7,558	11,926	11,447	6,417
Exploration and evaluation expenditures	178	103	(231)	(804)	1,044	1,648	1,259
General and administrative expenses	779	795	(1,498)	(1,569)	3,273	3,034	2,338
EBITDA (2)	1,225	7,157	8,537	15,246	18,374	18,918	12,533
Adjusted EBITDA (2)	442	7,280	6,905	15,366	22,632	21,425	13,279
Gain (Loss) from operations	(2,451)	2,479	1,450	5,880	3,689	5,907	2,839
Interest expense and other income	3,395	1,977	7,597	4,107	11,059	9,436	7,359
Net Gain (Loss)	(5,846)	474	(6,146)	1,746	(8,314)	(5,600)	(6,050)
Net Gain (Loss) per share, basic and fully diluted	(0.01)	0.00	(0.01)	0.00	(0.01)	(0.01)	(0.01)

 

(1) This news release should be read in conjunction with the Company's financial statements and management's discussion and analysis for the period ended June 30, 2023 filed on SEDAR⁺ at www.sedarplus.ca.

(2) Non-IFRS performance measures. For more information, refer to the definitions of EBITDA, Adjusted EBITDA, Average realized gold price, Cash Cost, AISC and All-in Cost in the "Non-IFRS Measures" section of the period ended June 30, 2023 MD&A.

Cisneros Project

The Company owns and operates the Cisneros Project, located in the Municipality of Santo Domingo (Antioquia, Colombia) and approximately 70-km from the city of Medellin. The Cisneros Project consists of two operating, underground mines, Guaico and Guayabito and a processing plant with a newly expanded capacity of 1,200-tonnes/day, tailings deposit and a 10 km pipeline. Flotation and gravity concentrates are produced and sold through internationally recognized trading houses.

The Company controls the mineral rights to a large, consolidated land package of approximately 17,000 hectares and maintains an active exploration program. This program helps to identify and confirm resources around current mines.

Mine Technical Services (MTS) audited the Cisneros Mineral Resource estimate and completed an independent mineral resource estimate for validation purposes. Differences were generally less than 10% in tonnes, grade and contained metal.

Mineral Resources for the project were classified under the 2014 CIM Definition Standards for Mineral Resources and Mineral Reserves by applying a cut-off grade that incorporated mining costs, process operating costs, metallurgical recovery parameters and commodity prices.

The Qualified Person for the Mineral Resource estimate is David G. Thomas, P.Geo of MTS. Mineral resources are reported using a long-term metal price of $1,800/troy oz USD. Variable marginal cut-off grades were applied depending on the anticipated mining method. Resources have an effective date of October 1, 2022

The updated MRE for Cisneros has been completed according to CIM Definition Standards and it is supported by a NI 43-101 independent report published and filed on the Company's website and SEDAR profile on December 16, 2022

Qualified Persons

Roger Moss, Ph.D., P.Geo., Consultant to Antioquia Gold, is the qualified person as defined by National Instrument 43-101 and has reviewed and approved the technical information provided in this news release.

For further information on Antioquia Gold Inc. contact:
Gonzalo de Losada - CEO
Thomas Kelly - Director
Antioquia Gold Inc.
Email: info@antioquiagold.com
www.antioquiagoldinc.com
Phone 57 604 6041948

Neither the 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 press release.

Reader Advisory Forward-Looking Statements:

This press release contains "forward-looking information" within the meaning of Canadian securities legislation. This information and these statements, referred to herein as "forward-looking statements", are made as of the date of this press release and the Corporation does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by law.

Forward-looking statements relate to future events or future performance and reflect current expectations or beliefs regarding future events and include, but are not limited to, statements with respect to: the completion of the Rights Offering and the use of proceeds of the offering. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "anticipates", "plans", "projects", "estimates", "assumes", "intends", "strategy", "goals", "objectives", "schedule" or variations thereof or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements.

Forward-looking statements are made based upon certain assumptions by the Corporation and other important factors that, if untrue, could cause the actual results, performances or achievements of Antioquia to be materially different from future results, performances or achievements expressed or implied by such statements. Such statements and information are based on numerous assumptions regarding present and future business prospects and strategies and the environment in which Antioquia will operate in the future, including the accuracy of any resource estimations, the price of gold, anticipated costs and Antioquia's ability to achieve its goals, anticipated financial performance, regulatory developments, development plans, exploration, development and mining activities and commitments. Although management considers its assumptions on such matters to be reasonable based on information currently available to it, they may prove to be incorrect. Additional risks are described in Antioquia's most recently filed Annual Information Form, annual and interim MD&A and other disclosure documents available under the Corporation's profile at: www.sedarplus.ca.

By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions do not reflect future experience. We caution readers not to place undue reliance on these forward-looking statements as a number of important risk factors could cause the actual outcomes to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates, assumptions and intentions expressed in such forward-looking statements.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/177602

FAQ

What is the financial performance of Antioquia Gold Inc. in Q2 2023?

Antioquia Gold Inc. reported a decrease in financial performance in Q2 2023 compared to the previous period. Gold production decreased by 26%, total revenues decreased by 20%, and adjusted EBITDA decreased by 94%.

What was the average realized gold price in Q2 2023?

The average realized gold price in Q2 2023 was US$1,838/ounce, which is a 6% increase compared to Q2 2022.

What were the cash cost per ounce sold and AISC per ounce sold in Q2 2023?

The cash cost per ounce sold in Q2 2023 was US$1,802, which is a 36.3% increase compared to Q2 2022. The AISC per ounce sold in Q2 2023 was US$2,502, which is a 79.6% increase compared to Q2 2022.

What improvements has the company made in Q2 2023?

The company has made improvements in mine planning and mining operations, as well as process plant optimization in Q2 2023.