GoGold Releases Q2 2024 Financial Results and Announces Changes to Board of Directors
GoGold Resources Inc. released its Q2 2024 financial results, showcasing net income of $1.3 million and revenue of $8.9 million from the sale of 374,140 silver equivalent ounces. Cash on hand is $80.8 million USD. The company saw production of 375,745 silver equivalent ounces, including silver, gold, and copper. Adjusted cash cost per silver equivalent ounce was $17.29. The company also announced changes to its Board of Directors, with the retirement of George Waye and the appointment of Douglas Reid.
Strong financial performance with net income of $1.3 million and revenue of $8.9 million.
Cash on hand totaling $80.8 million USD provides financial stability.
Increased production of 375,745 silver equivalent ounces, including silver, gold, and copper.
Successful addition of a zinc circuit contributing to company's balance sheet.
Adjusted cash cost per silver equivalent ounce at $17.29 showcases efficiency.
Appointment of Douglas Reid with extensive experience and skillset to the Board.
Operating loss of $123, indicating room for improvement in operational efficiency.
Decrease in revenue from $7.6 million in the previous period to $8.9 million.
Depreciation costs contributing to operating loss and affecting financial performance.
Cash used in operations amounting to $4.6 million, highlighting potential financial strain.
Shares Outstanding: 328,612,319
Trading Symbols: TSX: GGD
OTCQX: GLGDF
"At Parral, we're seeing the benefits of increasing production and rising metal prices, along with the successful addition of the SART zinc circuit. With our production anticipated to continue increasing in the coming quarters, we see it being a contributor to our strong balance sheet and ability to execute on our Los Ricos South project," said Brad Langille, President and CEO.
Highlights for the quarter ending March 31, 2024:
- Cash of
$80.8 million USD - Revenue of
$8.9 million $23.90 - Net income of
$1.3 million - Production of 375,745 silver equivalent ounces, consisting of 138,657 silver ounces, 2,184 gold ounces, and 93 copper tonnes
- First quarter producing a zinc precipitate, with 92 tonnes produced
- Adjusted cash cost per silver equivalent ounce of
$17.29 - Adjusted all in sustaining cost per silver equivalent ounce of
$24.20
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) | 2024 | 2023 | 2024 | 2023 | |
Revenue | $ 8,940 | $ 7,607 | $ 15,739 | $ 16,085 | |
Cost of sales, including depreciation1 | 6,517 | 13,760 | 12,584 | 22,525 | |
Operating loss1 | (123) | (8,152) | (1,732) | (10,395) | |
Net income (loss)1 | 1,268 | (3,308) | 1,463 | (6,197) | |
Basic net income (loss) per share1 | 0.004 | (0.011) | 0.005 | (0.020) | |
Cash flow used in operations | (4,637) | (2,734) | (7,665) | (6,914) | |
1 | Affected by inventory net realizable value adjustments of: Q2-24 |
Key Performance Indicators1 | Three months ended Mar 31 | Six months ended Mar 31 | |||
(in thousands USD, except per ounce amounts) | 2024 | 2023 | 2024 | 2023 | |
Total tonnes stacked | 423,977 | 317,204 | 797,861 | 669,567 | |
Silver equivalent ounces sold | 374,140 | 355,741 | 679,227 | 767,497 | |
Adjusted AISC per silver equivalent ounce2 | $ 24.20 | $ 19.76 | $ 24.40 | $ 18.69 | |
Adjusted Cash cost per silver equivalent ounce2 | $ 17.29 | $ 14.00 | $ 17.08 | $ 13.41 | |
Realized silver price | $ 23.90 | $ 21.39 | $ 23.17 | $ 20.96 | |
1 | Key performance indicators are unaudited non-GAAP measures, see reconciliation in MD&A. |
2 | Gold and copper are converted using average market prices. |
Board of Directors ("Board") Changes
The Company is announcing the retirement of George Waye, FCPA, FCA from its Board. Mr. Waye has provided invaluable expertise and guidance over the 14 years served on the Company's Board, originally joining in June 2010. His financial expertise combined with strategic knowledge helped grow GoGold from a shell company to a silver and gold producer for over 10 years at Parral along with being well positioned for the upcoming development of the Los Ricos district. "We'd like to thank George for the many years of service, and all of the valuable expertise and contributions that he provided over 14 years to help the company grow to the strong position we're in today," said John Turner, Chairman of the Board.
The Company has appointed Douglas Reid to its Board, effective May 7, 2024. Mr. Reid is a former partner of KPMG Canada, where he served in various leadership roles including Atlantic Managing Partner and as a member of the Board of Directors of KPMG Canada. During his 40-year career with KPMG, Mr. Reid provided professional services to many of
This news release should be read in conjunction with the interim condensed consolidated financial statements for the quarter ended March 31, 2024, notes to the financial statements, and management's discussion and analysis for the quarter ended March 31, 2024, 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.
About GoGold Resources
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, 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 7, 2024 for the three months ended March 31, 2024, as presented on SEDAR.
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SOURCE GoGold Resources Inc.
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