GoGold Releases Financial Results for Quarter Ending December 31, 2022
GoGold Resources Inc. (OTCQX: GLGDF) reported its financial results for the quarter ending December 31, 2022, achieving $8.5 million in revenue from the sale of 411,756 silver equivalent ounces. The company boasts a robust balance sheet with over $100 million in cash following a recent financing deal. Production included 441,217 silver equivalent ounces with adjusted cash costs at $12.89 per ounce. GoGold outlined significant milestones for 2023, including the completion of a Preliminary Economic Assessment at its Los Ricos North project. However, the quarter also saw a net loss of $2.89 million, contrasting with the previous year's loss of $495,000.
- Strong revenue of $8.5 million from silver equivalents.
- Cash position strengthened to over $100 million post-financing.
- Production of 441,217 silver equivalent ounces.
- Adjusted cash cost per ounce improved to $12.89.
- Net loss increased to $2.89 million from $495,000 year-over-year.
- Revenue decreased compared to the prior year's $8.85 million.
Shares Outstanding: 325,278,261
Trading Symbols: TSX: GGD
OTCQX: GLGDF
"Our December financial statements highlight one of the key strengths of our Company – which is our strong balance sheet which continues to allow us to advance our Los Ricos project. Subsequent to our quarter end, we closed a bought deal financing which further strengthened our balance sheet, with over
- Completion of PEA at Los Ricos North
- Continued drilling program at Los Ricos South
- Updated Mineral Resource Estimate and Preliminary Economic Assessment ("PEA") at Los Ricos South including the impact of the Eagle concession
- Completion of Pre-Feasibility Study ("PFS") at Los Ricos South
- Underground exploration and development at Los Ricos South focussing initially on the Eagle
- Construction decision and permitting at Los Ricos South
With our above objectives and our strong balance sheet, we expect the year ahead will be strong in value creation for GoGold as we advance on the development road towards mining."
Financial Highlights for the quarter ending
- Cash of
$62.6 million USD - Revenue of
on the sale of 411,756 silver equivalent ounces at a realized price per ounce of$8.5 million per oz$21.18 - Production of 441,217 silver equivalent ounces, consisting of 159,838 silver ounces, 2,399 gold ounces, and 222 copper tonnes
- Adjusted cash cost per silver equivalent ounce of
$12.89 - Adjusted all in sustaining cost per silver equivalent ounce of
$17.76
Following are tables showing summarized financial information and key performance indicators:
Summarized Consolidated Financial Information | Three months ended | |
(in thousands USD, except per share amounts) | 2022 | 2021 |
Revenue | $ 8,478 | $ 8,854 |
Cost of sales, including depreciation | 8,765 | 6,453 |
Operating income (loss) | (2,242) | 574 |
Net loss | (2,891) | (495) |
Basic net income (loss) per share | (0.010) | (0.002) |
Cash flow used in operations | (4,246) | (4,584) |
Key Performance Indicators1 | Three months ended | |
(in thousands USD, except per ounce amounts) | 2022 | 2021 |
Total tonnes stacked | 352,363 | 573,357 |
Silver equivalent ounces sold | 411,756 | 401,214 |
Adjusted AISC per silver equivalent ounce2 | $ 17.76 | $ 18.58 |
Adjusted Cash cost per silver equivalent ounce2 | $ 12.89 | $ 13.51 |
Realized silver price | $ 21.18 | $ 22.07 |
Metres drilled | 21,642 | 19,864 |
1 Key performance indicators are unaudited non-GAAP measures, see reconciliation in MD&A. |
2 Gold and copper are converted using average market prices |
This news release should be read in conjunction with the interim condensed consolidated financial statements for the quarter ended
Technical information contained in this news release with respect to GoGold has been reviewed and approved by Mr.
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 "
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. 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. "Adjusted cash costs per ounce" and "Adjusted all-in sustaining costs per ounce" are used in this analysis and 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, "Adjusted 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. "Adjusted 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. "Adjusted 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
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