GoGold Releases Q1 2024 Financial Results
- Parral generated $6.8 million from the sale of 305,087 silver equivalent ounces
- Anticipation of increased free cash flow and production at Parral after the completion of the SART Zinc circuit commissioning
- The technical team is working on the definitive feasibility study and front-end engineering design for Los Ricos South
- Reported cash of $88.8 million USD, revenue of $6.8 million, and net income of $192,000
- Production of 300,260 silver equivalent ounces
- Adjusted cash cost per silver equivalent ounce was $16.83
- Adjusted all in sustaining cost per silver equivalent ounce was $24.64
- Net loss for the quarter was $192,000
Shares Outstanding: 328,222,500
Trading Symbols: TSX: GGD
TCQX: GLGDF
HALIFAX, NS, Feb. 7, 2024 /PRNewswire/ - GoGold Resources Inc. (TSX: GGD) (OTCQX: GLGDF) ("GoGold", "the Company") announces the financial results for the quarter ending December 31, 2023, with Parral generating
"In keeping with our outlook for 2024, as anticipated, the SART Zinc circuit commissioning was finalized at Parral in January, and now we will ramp up the production of zinc and increased precious metals production. We anticipate reaching the average run rate by July of this year when we will fully realize the benefits of the Zinc circuit providing increased free cash flow and production at Parral. The SART Zinc circuit was completed on budget and on schedule," said Brad Langille, President and CEO. "Our technical team is continuing with the definitive feasibility study and front-end engineering design for Los Ricos South to be completed within the first six months of 2024. With our strong cash position, which will be enhanced with improved cash flow from Parral, we are in an excellent position to move forward with our Los Ricos development."
Highlights for the quarter ending December 31, 2023:
- Cash of
$88.8 million USD - Revenue of
$6.8 million $22.28 - Net income of
$192,000 - Production of 300,260 silver equivalent ounces, consisting of 109,016 silver ounces, 1,848 gold ounces, and 95 copper tonnes
- Adjusted cash cost per silver equivalent ounce of
$16.83 - Adjusted all in sustaining cost per silver equivalent ounce of
$24.64
Following are tables showing summarized financial information and key performance indicators:
Summarized Consolidated Financial Information | Three months ended Dec 31 | |
(in thousands USD, except per share amounts) | 2023 | 2022 |
Revenue | $ 6,799 | $ 8,478 |
Cost of sales, including depreciation | 6,067 | 8,765 |
Operating loss | (1,609) | (2,242) |
Net loss | 192 | (2,891) |
Basic net income (loss) per share | 0.001 | (0.010) |
Cash flow used in operations | (3,027) | (4,246) |
Key Performance Indicators1 | Three months ended Dec 31 | |
(in thousands USD, except per ounce amounts) | 2023 | 2022 |
Total tonnes stacked | 373,884 | 352,363 |
Silver equivalent ounces sold | 305,087 | 411,756 |
Adjusted AISC per silver equivalent ounce2 | $ 24.64 | $ 17.76 |
Adjusted Cash cost per silver equivalent ounce2 | $ 16.83 | $ 12.89 |
Realized silver price | $ 22.28 | $ 21.18 |
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 quarter ended December 31, 2023, notes to the financial statements, and management's discussion and analysis for the quarter ended December 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
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, 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.
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 February 6, 2024 for the three months ended December 31, 2023, as presented on SEDAR.
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SOURCE GoGold Resources Inc.
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