San Gold Corporation (SGRCF)

[goldenpolarbear]

Sadly, NOT GOOD! & ABSOLUTELY NOT-Good ENOUGH!
http://sangold.mwnewsroom.com/press-releases/san-gold-reports-2014-first-quarter-results-tsx-sgr-201405120945270001

May 12, 2014
San Gold Reports 2014 First Quarter Results
WINNIPEG, MANITOBA--(Marketwired - May 12, 2014) - San Gold Corporation (TSX:SGR)(OTCQX:SGRCF) today reported 2014 first quarter financial and operating results (all amounts in Canadian dollars unless otherwise stated).

During the quarter, the Company produced 12,083 ounces of gold and recognized a quarterly loss from operations of $2.8 million and a total and comprehensive loss of $7.7 million. Exploration expenses decreased by $4.6 million and general and administrative expenses decreased by $2.2 million. Additionally, capital expenditures were reduced by $7.0 million or 37% compared with Q1 2013. These savings, however, were offset by a total reduction in revenues of $9.4 million or 39% compared with last year.

In March, the Company initiated a comprehensive technical review of operations which has already identified a number of opportunities to improve the financial performance of the Company. Key areas identified include reducing costs related to inventory, overhead and surface drilling, improving grade control initiatives, and revising mining methods with smaller stope sizes to promote access to higher grade areas with less dilution. A new initiative is also underway to improve mill recoveries.

"We understand the urgency to become profitable and we are aggressively pursuing a number of strategies to achieve this. We have already revised the mine plan to target the most profitable ounces and have eliminated significant capital expenditures in the process. We expect the cost savings associated with these changes to have an immediate impact on our financial performance with incremental improvements going forward," said Gestur Kristjansson, San Gold's President and Chief Executive Officer.

2014 First Quarter Highlights:

Announced an updated mineral reserve and resource estimate with a 60% increase in proven and probable mineral reserves.

Closed a US$23.8 million debt financing.

Produced 12,083 ounces of gold.

Recognized quarterly revenue of $14.9 million on gold sales of 10,375 ounces at a realized price of $1,440 per ounce and had total cash costs of $1,226 per ounce of gold sold.

Had a cash and cash equivalents balance of $16.1 million as at March 31, 2014.

Achieved average mill throughput of 1,333 tons per day for the quarter.

Recognized quarterly loss from operations of $2.8 million and a quarterly total and comprehensive loss of $7.7 million

Cash flow used by operating activities before changes in non-cash working capital of $5.6 million.

Completed approximately 14,000 metres of definition and exploration diamond drilling.

Formed a technical committee to evaluate all aspects of the Rice Lake operations with a mandate to create a clear path toward profitability.

Appointed Gestur Kristjansson as President and CEO and Mandeep Rai as CFO effective March 18, 2014.