GoGold Releases Financial Results for Quarter Ending March 31, 2023
Shares Outstanding: 326,114,177
Trading Symbols: TSX: GGD
OTCQX: GLGDF
"GoGold maintains a strong balance sheet with over
Financial Highlights for the quarter ending March 31, 2023:
- Cash of
$100.9 million USD - Revenue of
$7.6 million $21.39 - Production of 400,145 silver equivalent ounces, consisting of 173,717 silver ounces, 2,016 gold ounces, and 143 copper tonnes
- Adjusted cash cost per silver equivalent ounce of
$14.00 - Adjusted all in sustaining cost per silver equivalent ounce of
$19.76
Following are tables showing summarized financial information and key performance indicators:
Summarized Consolidated Financial Information | Three months ended Mar 31 | Six months ended Mar 31 | ||
(in thousands USD, except per share amounts) | 2023 | 2022 | 2023 | 2022 |
Revenue | $ 7,607 | $ 10,334 | $ 16,085 | $ 19,189 |
Cost of sales, including depreciation1 | 13,760 | 6,987 | 22,525 | 13,440 |
Operating income (loss)1 | (8,152) | 1,305 | (10,395) | 1,880 |
Net loss1 | (3,308) | (1,618) | (8,907) | (1,492) |
Basic net income (loss) per share | (0.011) | (0.004) | (0.020) | (0.005) |
Cash flow used in operations | (2,734) | (1,694) | (6,914) | (6,277) |
1Includes a pre-tax non-cash negative inventory adjustment of |
At Parral during the quarter, old material which had originally been stacked on the heap leach pad in 2015-2016 was removed from the pad, re-agglomerated, and then restacked using the current stacking process. It was determined that the material could be rehandled and restacked with quicker metal recoveries providing positive cash flow, as well as reclaiming heap leach pad area for future stacking which will defer pad expansion capital. An assessment of the additional costs associated with rehandling and restacking resulted in a negative pre-tax non-cash inventory adjustment of
Key Performance Indicators1 | Three months ended Mar 31 | Six months ended Mar 31 | ||
(in thousands USD, except per ounce amounts) | 2023 | 2022 | 2023 | 2022 |
Total tonnes stacked, fresh tailings | 80,680 | 377,874 | 433,043 | 951,231 |
Total tonnes stacked, rehandled tailings | 236,524 | - | 236,524 | - |
Silver equivalent ounces sold | 355,741 | 443,942 | 767,497 | 845,156 |
Adjusted AISC per silver equivalent ounce2 | $ 19.76 | $ 18.12 | $ 18.69 | $ 18.34 |
Adjusted Cash cost per silver equivalent ounce2 | $ 14.00 | $ 13.24 | $ 13.41 | $ 13.37 |
Realized silver price | $ 21.39 | $ 23.28 | $ 20.96 | $ 22.70 |
1Key performance indicators are unaudited non-GAAP measures, see reconciliation in MD&A. |
2Gold 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 three and six months ended March 31, 2023, notes to the financial statements, and management's discussion and analysis for the quarter ended March 31, 2023, 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.
GoGold Resources (TSX: GGD) is a Canadian-based silver and gold producer focused on operating, developing, exploring and acquiring high quality projects in Mexico. The Company operates the Parral Tailings mine in the
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 May 9, 2023 for the three months ended March 31, 2023, as presented on SEDAR.
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SOURCE GoGold Resources Inc.
