Thursday, February 12, 2015 6:31:16 PM
Added PPP $3.25 Avg, (first buy was a little early). Should move up off bottom of triangle, earnings seemed good.
http://finance.yahoo.com/news/primero-reports-fourth-quarter-full-120000075.html
excerpt from report/link:
"Primero Mining Corp. ("Primero" or the "Company") (TSX:P.TO) (PPP) today reported financial and operational results for the fourth quarter and year ended December 31, 2014. On January 20, 2015 the Company reported record production of 225,100 gold equivalent ounces(1), a 57% increase over 2013, at low cash costs(2) of $687 per gold equivalent ounce. Today the Company reports record revenues in 2014 of $274.6 million, operating cash flow before changes in working capital(3) of $73.7 million ($0.48 per share), a net loss of $224.4 million ($1.48 per share) including $209.0 million ($1.37 per share) in non-cash impairment charges(4) and adjusted net income(5) of $5.4 million ($0.04 per share).
Fourth Quarter and Full-Year 2014 Highlights:
Record Annual Production: Strong fourth quarter performance included 62,200 gold equivalent ounces from San Dimas and Black Fox combined, resulting in record 2014 production of 225,100 gold equivalent ounces, 57% higher than 2013 and within the Company's guidance range.
Disciplined Cost Management: Fourth quarter cash costs of $701 per gold equivalent ounce resulted in 2014 cash costs of $687 per gold equivalent ounce and all-in sustaining costs(6) of $1,222 per ounce, within the Company's guidance range and these are expected to decline in 2015.
Balance Sheet Strengthened: Total liquidity position of $62.4 million as at December 31, 2014, which has been boosted following the recent addition of $75 million of convertible unsecured subordinated debentures, maturing on February 28, 2020.
Record Revenues and Strong Operating Cash Flow: Primero generated record annual revenues of $274.6 million in 2014 and strong operating cash flow before working capital changes of $73.7 million ($0.48 per share).
Further Production Growth in 2015: Production is expected to increase further in 2015, by up to 20% over 2014, to between 250,000 and 270,000 gold equivalent ounces.
Strengthening our Management Team: Primero has increased the experience depth of the management team most recently with the addition of Ernest Mast as President and Chief Operating Officer, as well as by the addition of Wendy Kaufman as Chief Financial Officer in 2014.
"In 2014, Primero continued to deliver on its commitment to build a strong intermediate gold producer with a portfolio of high quality, low cost precious metals assets in the Americas," stated Joseph F. Conway, Chief Executive Officer. "The Company now has diversified cash flow from two high-grade gold mines in top mining jurisdictions of North America. It also has a pipeline of organic growth poised to deliver increased production at competitive cash costs as the company moves forward. Our operating teams excelled in 2014 by delivering record production at first quartile all-in sustaining costs at our platform San Dimas mine in Mexico. They also began the optimization of the Black Fox mine in Canada, with aims to improve productivity, reduce costs and increase reserves and resources, just as they did with San Dimas over the last few years. At a corporate level we are focused on managing costs and will be closing our Mexico City and Vancouver offices early in 2015. We have also strengthened our management team with the addition of a seasoned C.O.O. to complement our new C.F.O. who also brings a depth of experience in mining. Combined, these efforts have created a strong foundation that will allow Primero to complete the organic growth planned in 2015 and beyond, positioning the Company for a period of strong cash flows and value creation for our shareholders."
High-Grade Production from Top Jurisdictions in the Americas
Primero produced 62,200 gold equivalent ounces during the fourth quarter of 2014, at cash costs of $701 per gold equivalent ounce and all-in sustaining costs of $1,196 per ounce. This resulted in record 2014 production of 225,100 gold equivalent ounces at cash costs of $687 per gold equivalent ounce and all-in sustaining costs of $1,222 per ounce, representing a 57% increase in production over 2013 and within the Company's guidance range.
San Dimas produced 41,900 gold equivalent ounces (35,800 ounces of gold and 1.74 million ounces of silver) during the fourth quarter at cash costs of $654 per gold equivalent ounce and all-in sustaining costs of $897 per ounce. This resulted in full-year 2014 production of 161,200 gold equivalent ounces (126,100 ounces of gold and 6.15 million ounces of silver from San Dimas) at cash costs of $628 per gold equivalent ounce and all-in sustaining costs of $826 per ounce. Production at San Dimas in 2014 was higher than 2013 as a result of higher throughput with the completion of the expansion of the mill to 2,500 tonnes per day ("TPD"). Average throughput in 2014 increased by approximately 17% over 2013 to 2,463 TPD (based on 365 day availability). The expansion of the mill combined with an increase in long-hole mining allowed the San Dimas mine and mill to operate more efficiently. The optimization program at San Dimas was also successful at further improving mining dilution and reducing process inefficiencies.
Black Fox produced 20,300 ounces of gold during the fourth quarter at cash costs of $799 per ounce and all-in sustaining costs of $1,374 per ounce. This resulted in 2014 production, from the March 5, 2014 acquisition date, of 63,900 ounces of gold at cash costs of $837 per ounce and all-in sustaining costs of $1,428 per ounce. The Company initiated an optimization program at Black Fox following its acquisition, increasing underground exploration and development throughout the year. The Black Fox mill operated at approximately 2,300 TPD in 2014, with over 70% of the ore coming from the open pit and only 30% coming from the underground, according to plan, as the Company focuses on building its underground stope inventory.
Strong Financial Results
Revenue in the fourth quarter of 2014 was $71.2 million, 49% higher than the $47.7 million in the fourth quarter 2013, as a result of the addition of the Black Fox Complex and the completion of the San Dimas mill expansion to 2,500 TPD. The Company sold 54,406 ounces of gold at an average realized price of $1,188 per ounce and 1.56 million ounces of silver at an average realized price of $4.20 per ounce in the fourth quarter of 2014, in accordance with the San Dimas silver purchase agreement(7) and the Black Fox gold stream agreement(8).
Gold produced at Black Fox is subject to a gold purchase agreement and as a result 1,148 ounces were sold to Sandstorm Gold Ltd. ("Sandstorm") at a fixed price of $509 per ounce in the fourth quarter of 2014. Silver produced at San Dimas is subject to a silver purchase agreement and as a result 1.56 million ounces of silver were sold to Silver Wheaton Caymans ("Silver Wheaton") at a fixed price of $4.20 per ounce. As of December 31, 2014 the Company has delivered 2.44 million ounces of silver into the San Dimas silver purchase agreement's 6.0 million ounce annual threshold, after which the Company will begin selling 50% of the silver produced at San Dimas at spot market prices.
The Company incurred a net loss of $110.0 million ($0.69 per share) for the fourth quarter of 2014 compared with a net loss of $35.9 million ($0.31 per share) for the fourth quarter of 2013, mainly due to certain developments that the Company announced in its guidance news release on January 20, 2015 (the "2015 Guidance") that required non-cash impairment charges against the carrying amount of the Black Fox mine and the Cerro del Gallo project. The non-cash charges against the Black Fox mine were primarily due to the early depletion of the open-pit, as disclosed in the 2015 Guidance, and the non-cash charges against the Cerro del Gallo project were primarily due to current economic conditions and the subsequent deferral of a construction decision, as also disclosed in the 2015 Guidance. The adjusted net loss for the fourth quarter was $5.1 million ($0.03 per share), compared to adjusted net income of $1.6 million ($0.01 per share) in the fourth quarter of 2013. Adjusted net loss/income primarily excludes the impact of impairment charges and prior quarter depletion adjustment related to the finalization of the Brigus purchase price allocation in 2014, deferred taxes due to foreign exchange rate changes on deferred tax balances in both periods and deferred taxes recorded on the enactment of a new royalty tax in Mexico in 2013.
Operating cash flow before working capital changes in the fourth quarter of 2014 was $18.2 million ($0.11 per share), compared to $14.0 million ($0.12 per share) in the fourth quarter of 2013.
For the twelve months ended December 31, 2014 revenue was a record $274.6 million compared to $200.3 million in 2013 as a result of selling 64% more gold ounces at an 11% lower average realized gold price and 4% less silver ounces at a 7% higher average realized silver price. In 2014 Primero sold 185,286 ounces of gold at an average realized price of $1,243 per ounce, and 5.94 million ounces of silver at an average realized price of $7.46 per ounce. In 2014 the Company sold 4,353 ounces of gold to Sandstorm at a fixed price of $509 per ounce and 4.70 million ounces of silver to Silver Wheaton at a fixed price of $4.18 per ounce. The Company sold 1.24 million ounces of silver at spot prices in 2014, 24% more than the 1.0 million ounces sold in 2013.
The Company incurred a net loss of $224.4 million ($1.48 per share) in 2014, mainly due to certain developments that the Company disclosed in the 2015 Guidance and other developments that the Company had disclosed earlier, that required $209.0 million ($1.37 per share) in non-cash impairment charges, compared with a net loss of $4.3 million ($0.04 per share) in 2013. The non-cash impairment charges include a $99.0 million goodwill impairment as a result of share price appreciation from the announcement date of the Brigus acquisition to the close date, plus a further $75.0 million impairment of Black Fox due to the early depletion of the open-pit, as disclosed in the 2015 Guidance, and a $35.0 million impairment of the Cerro del Gallo development project as a result of current economic conditions and the subsequent deferral of a construction decision, as also disclosed in the 2015 Guidance.
Adjusted net income for 2014 was $5.4 million ($0.04 per share) compared with adjusted net income of $38.7 million ($0.36 per share) in 2013. Adjusted net income primarily excludes the impact of impairment charges in 2014 on the Black Fox Complex and the Cerro del Gallo project, foreign exchange rate changes on deferred tax balances in both periods and deferred taxes resulting from the introduction of the new royalty tax in Mexico in 2013.
Operating cash flow before working capital changes was $73.7 million ($0.48 per share) in 2014, compared to $72.4 million ($0.67 per share) in 2013.
Balance Sheet Strengthened
The Company's liquidity position at December 31, 2014 was $62.4 million, comprising cash of $27.4 million, up from the September 30, 2014 balance of $22.1 million, plus $35.0 million of undrawn credit facility.
On February 9, 2015 the Company closed a $75 million offering of 5.75% convertible unsecured subordinated debentures, maturing on February 28, 2020. This has improved the Company's current liquidity positon to $134.0 million.
The Company generated strong operating cash flow in 2014 and has continued to invest in its operations with total capital expenditures of $112.3 million spent during the year. The Company also repaid $63.3 million of debt and interest in 2014, including repaying the remaining $27.2 million of the promissory note previously held by Goldcorp Inc., plus $20.9 million in senior secured notes and $1.9 million of convertible debentures both assumed upon the acquisition of Brigus.
Production Growth Continues in 2015
In 2015 Primero expects to increase production to between 250,000 and 270,000 gold equivalent ounces, up to 20% higher than 2014, due to increased production from both San Dimas and Black Fox. Cash costs for 2015 are expected to be in the range of $650 to $700 per gold equivalent ounce, or between $1,000 and $1,100 per ounce on an all-in sustaining cost basis.
Total capital expenditures during 2015 are expected to be approximately $66.7 million excluding capitalized exploration costs of $18.6 million. Primero's 2015 production outlook is summarized in the following table:
Production Outlook Black Fox San Dimas Estimated 2015
Attributable gold equivalent production(1)
(gold equivalent ounces) 75,000-85,000 175,000-185,000 250,000-270,000
Gold Production
(ounces) 75,000-85,000 145,000-155,000 220,000-240,000
Silver Production(7)
(million ounces) 6.5-7.5 6.5-7.5
Total cash costs(2)
(per gold equivalent ounce) $820-$870 $590-$640 $650-$700
All-in Sustaining Costs(6)
(per gold ounce) $1,075-$1,125 $840-$890 $1,000-$1,100
Material assumptions used to forecast total cash costs for 2015 include: an average gold price of $1,200 per ounce; an average silver price of $5.21 per ounce (calculated using the silver purchase agreement contract price of $4.20 per ounce and assuming excess silver beyond contract requirements is sold at an average silver price of $18 per ounce); and conservative foreign exchange rates of 1.10 Canadian dollars and 13 Mexican pesos to the US dollar."
http://finance.yahoo.com/news/primero-reports-fourth-quarter-full-120000075.html
excerpt from report/link:
"Primero Mining Corp. ("Primero" or the "Company") (TSX:P.TO) (PPP) today reported financial and operational results for the fourth quarter and year ended December 31, 2014. On January 20, 2015 the Company reported record production of 225,100 gold equivalent ounces(1), a 57% increase over 2013, at low cash costs(2) of $687 per gold equivalent ounce. Today the Company reports record revenues in 2014 of $274.6 million, operating cash flow before changes in working capital(3) of $73.7 million ($0.48 per share), a net loss of $224.4 million ($1.48 per share) including $209.0 million ($1.37 per share) in non-cash impairment charges(4) and adjusted net income(5) of $5.4 million ($0.04 per share).
Fourth Quarter and Full-Year 2014 Highlights:
Record Annual Production: Strong fourth quarter performance included 62,200 gold equivalent ounces from San Dimas and Black Fox combined, resulting in record 2014 production of 225,100 gold equivalent ounces, 57% higher than 2013 and within the Company's guidance range.
Disciplined Cost Management: Fourth quarter cash costs of $701 per gold equivalent ounce resulted in 2014 cash costs of $687 per gold equivalent ounce and all-in sustaining costs(6) of $1,222 per ounce, within the Company's guidance range and these are expected to decline in 2015.
Balance Sheet Strengthened: Total liquidity position of $62.4 million as at December 31, 2014, which has been boosted following the recent addition of $75 million of convertible unsecured subordinated debentures, maturing on February 28, 2020.
Record Revenues and Strong Operating Cash Flow: Primero generated record annual revenues of $274.6 million in 2014 and strong operating cash flow before working capital changes of $73.7 million ($0.48 per share).
Further Production Growth in 2015: Production is expected to increase further in 2015, by up to 20% over 2014, to between 250,000 and 270,000 gold equivalent ounces.
Strengthening our Management Team: Primero has increased the experience depth of the management team most recently with the addition of Ernest Mast as President and Chief Operating Officer, as well as by the addition of Wendy Kaufman as Chief Financial Officer in 2014.
"In 2014, Primero continued to deliver on its commitment to build a strong intermediate gold producer with a portfolio of high quality, low cost precious metals assets in the Americas," stated Joseph F. Conway, Chief Executive Officer. "The Company now has diversified cash flow from two high-grade gold mines in top mining jurisdictions of North America. It also has a pipeline of organic growth poised to deliver increased production at competitive cash costs as the company moves forward. Our operating teams excelled in 2014 by delivering record production at first quartile all-in sustaining costs at our platform San Dimas mine in Mexico. They also began the optimization of the Black Fox mine in Canada, with aims to improve productivity, reduce costs and increase reserves and resources, just as they did with San Dimas over the last few years. At a corporate level we are focused on managing costs and will be closing our Mexico City and Vancouver offices early in 2015. We have also strengthened our management team with the addition of a seasoned C.O.O. to complement our new C.F.O. who also brings a depth of experience in mining. Combined, these efforts have created a strong foundation that will allow Primero to complete the organic growth planned in 2015 and beyond, positioning the Company for a period of strong cash flows and value creation for our shareholders."
High-Grade Production from Top Jurisdictions in the Americas
Primero produced 62,200 gold equivalent ounces during the fourth quarter of 2014, at cash costs of $701 per gold equivalent ounce and all-in sustaining costs of $1,196 per ounce. This resulted in record 2014 production of 225,100 gold equivalent ounces at cash costs of $687 per gold equivalent ounce and all-in sustaining costs of $1,222 per ounce, representing a 57% increase in production over 2013 and within the Company's guidance range.
San Dimas produced 41,900 gold equivalent ounces (35,800 ounces of gold and 1.74 million ounces of silver) during the fourth quarter at cash costs of $654 per gold equivalent ounce and all-in sustaining costs of $897 per ounce. This resulted in full-year 2014 production of 161,200 gold equivalent ounces (126,100 ounces of gold and 6.15 million ounces of silver from San Dimas) at cash costs of $628 per gold equivalent ounce and all-in sustaining costs of $826 per ounce. Production at San Dimas in 2014 was higher than 2013 as a result of higher throughput with the completion of the expansion of the mill to 2,500 tonnes per day ("TPD"). Average throughput in 2014 increased by approximately 17% over 2013 to 2,463 TPD (based on 365 day availability). The expansion of the mill combined with an increase in long-hole mining allowed the San Dimas mine and mill to operate more efficiently. The optimization program at San Dimas was also successful at further improving mining dilution and reducing process inefficiencies.
Black Fox produced 20,300 ounces of gold during the fourth quarter at cash costs of $799 per ounce and all-in sustaining costs of $1,374 per ounce. This resulted in 2014 production, from the March 5, 2014 acquisition date, of 63,900 ounces of gold at cash costs of $837 per ounce and all-in sustaining costs of $1,428 per ounce. The Company initiated an optimization program at Black Fox following its acquisition, increasing underground exploration and development throughout the year. The Black Fox mill operated at approximately 2,300 TPD in 2014, with over 70% of the ore coming from the open pit and only 30% coming from the underground, according to plan, as the Company focuses on building its underground stope inventory.
Strong Financial Results
Revenue in the fourth quarter of 2014 was $71.2 million, 49% higher than the $47.7 million in the fourth quarter 2013, as a result of the addition of the Black Fox Complex and the completion of the San Dimas mill expansion to 2,500 TPD. The Company sold 54,406 ounces of gold at an average realized price of $1,188 per ounce and 1.56 million ounces of silver at an average realized price of $4.20 per ounce in the fourth quarter of 2014, in accordance with the San Dimas silver purchase agreement(7) and the Black Fox gold stream agreement(8).
Gold produced at Black Fox is subject to a gold purchase agreement and as a result 1,148 ounces were sold to Sandstorm Gold Ltd. ("Sandstorm") at a fixed price of $509 per ounce in the fourth quarter of 2014. Silver produced at San Dimas is subject to a silver purchase agreement and as a result 1.56 million ounces of silver were sold to Silver Wheaton Caymans ("Silver Wheaton") at a fixed price of $4.20 per ounce. As of December 31, 2014 the Company has delivered 2.44 million ounces of silver into the San Dimas silver purchase agreement's 6.0 million ounce annual threshold, after which the Company will begin selling 50% of the silver produced at San Dimas at spot market prices.
The Company incurred a net loss of $110.0 million ($0.69 per share) for the fourth quarter of 2014 compared with a net loss of $35.9 million ($0.31 per share) for the fourth quarter of 2013, mainly due to certain developments that the Company announced in its guidance news release on January 20, 2015 (the "2015 Guidance") that required non-cash impairment charges against the carrying amount of the Black Fox mine and the Cerro del Gallo project. The non-cash charges against the Black Fox mine were primarily due to the early depletion of the open-pit, as disclosed in the 2015 Guidance, and the non-cash charges against the Cerro del Gallo project were primarily due to current economic conditions and the subsequent deferral of a construction decision, as also disclosed in the 2015 Guidance. The adjusted net loss for the fourth quarter was $5.1 million ($0.03 per share), compared to adjusted net income of $1.6 million ($0.01 per share) in the fourth quarter of 2013. Adjusted net loss/income primarily excludes the impact of impairment charges and prior quarter depletion adjustment related to the finalization of the Brigus purchase price allocation in 2014, deferred taxes due to foreign exchange rate changes on deferred tax balances in both periods and deferred taxes recorded on the enactment of a new royalty tax in Mexico in 2013.
Operating cash flow before working capital changes in the fourth quarter of 2014 was $18.2 million ($0.11 per share), compared to $14.0 million ($0.12 per share) in the fourth quarter of 2013.
For the twelve months ended December 31, 2014 revenue was a record $274.6 million compared to $200.3 million in 2013 as a result of selling 64% more gold ounces at an 11% lower average realized gold price and 4% less silver ounces at a 7% higher average realized silver price. In 2014 Primero sold 185,286 ounces of gold at an average realized price of $1,243 per ounce, and 5.94 million ounces of silver at an average realized price of $7.46 per ounce. In 2014 the Company sold 4,353 ounces of gold to Sandstorm at a fixed price of $509 per ounce and 4.70 million ounces of silver to Silver Wheaton at a fixed price of $4.18 per ounce. The Company sold 1.24 million ounces of silver at spot prices in 2014, 24% more than the 1.0 million ounces sold in 2013.
The Company incurred a net loss of $224.4 million ($1.48 per share) in 2014, mainly due to certain developments that the Company disclosed in the 2015 Guidance and other developments that the Company had disclosed earlier, that required $209.0 million ($1.37 per share) in non-cash impairment charges, compared with a net loss of $4.3 million ($0.04 per share) in 2013. The non-cash impairment charges include a $99.0 million goodwill impairment as a result of share price appreciation from the announcement date of the Brigus acquisition to the close date, plus a further $75.0 million impairment of Black Fox due to the early depletion of the open-pit, as disclosed in the 2015 Guidance, and a $35.0 million impairment of the Cerro del Gallo development project as a result of current economic conditions and the subsequent deferral of a construction decision, as also disclosed in the 2015 Guidance.
Adjusted net income for 2014 was $5.4 million ($0.04 per share) compared with adjusted net income of $38.7 million ($0.36 per share) in 2013. Adjusted net income primarily excludes the impact of impairment charges in 2014 on the Black Fox Complex and the Cerro del Gallo project, foreign exchange rate changes on deferred tax balances in both periods and deferred taxes resulting from the introduction of the new royalty tax in Mexico in 2013.
Operating cash flow before working capital changes was $73.7 million ($0.48 per share) in 2014, compared to $72.4 million ($0.67 per share) in 2013.
Balance Sheet Strengthened
The Company's liquidity position at December 31, 2014 was $62.4 million, comprising cash of $27.4 million, up from the September 30, 2014 balance of $22.1 million, plus $35.0 million of undrawn credit facility.
On February 9, 2015 the Company closed a $75 million offering of 5.75% convertible unsecured subordinated debentures, maturing on February 28, 2020. This has improved the Company's current liquidity positon to $134.0 million.
The Company generated strong operating cash flow in 2014 and has continued to invest in its operations with total capital expenditures of $112.3 million spent during the year. The Company also repaid $63.3 million of debt and interest in 2014, including repaying the remaining $27.2 million of the promissory note previously held by Goldcorp Inc., plus $20.9 million in senior secured notes and $1.9 million of convertible debentures both assumed upon the acquisition of Brigus.
Production Growth Continues in 2015
In 2015 Primero expects to increase production to between 250,000 and 270,000 gold equivalent ounces, up to 20% higher than 2014, due to increased production from both San Dimas and Black Fox. Cash costs for 2015 are expected to be in the range of $650 to $700 per gold equivalent ounce, or between $1,000 and $1,100 per ounce on an all-in sustaining cost basis.
Total capital expenditures during 2015 are expected to be approximately $66.7 million excluding capitalized exploration costs of $18.6 million. Primero's 2015 production outlook is summarized in the following table:
Production Outlook Black Fox San Dimas Estimated 2015
Attributable gold equivalent production(1)
(gold equivalent ounces) 75,000-85,000 175,000-185,000 250,000-270,000
Gold Production
(ounces) 75,000-85,000 145,000-155,000 220,000-240,000
Silver Production(7)
(million ounces) 6.5-7.5 6.5-7.5
Total cash costs(2)
(per gold equivalent ounce) $820-$870 $590-$640 $650-$700
All-in Sustaining Costs(6)
(per gold ounce) $1,075-$1,125 $840-$890 $1,000-$1,100
Material assumptions used to forecast total cash costs for 2015 include: an average gold price of $1,200 per ounce; an average silver price of $5.21 per ounce (calculated using the silver purchase agreement contract price of $4.20 per ounce and assuming excess silver beyond contract requirements is sold at an average silver price of $18 per ounce); and conservative foreign exchange rates of 1.10 Canadian dollars and 13 Mexican pesos to the US dollar."
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