Scorpio Gold Reports Fourth Quarter and Provides Year-End Financial Results for 2013
VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 17, 2014) - Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX VENTURE:SGN) is pleased to announce its financial results for the fourth quarter ("Q4") and year ended December 31, 2013. This press release should be read in conjunction with the Company's consolidated financial statements for the year ended December 31, 2013 and Management's Discussion & Analysis ("MD&A") for the same period, available on the Company's website at www.scorpiogold.com and under the Company's name on SEDAR at www.sedar.com. All monetary amounts are expressed in US dollars unless otherwise specified.
PERFORMANCE HIGHLIGHTS:
Q4 2013 Q4 2012 2013 2012
-------------------------------------- ------- ------- ------ ------
$ $ $ $
Revenue ($000's) 13,739 15,498 54,646 52,615
Mine operating earnings ($000's) 1,819 5,041 10,841 17,086
Net earnings (loss) ($000's) (1,976) 3,673 (6,843) 12,601
Basic and diluted earnings (loss) per
share (0.02) 0.02 (0.05) 0.07
Adjusted net earnings(1) (000's) 774 4,515 6,346 13,759
Adjusted basic and diluted net
earnings per share(1) 0.00 0.03 0.03 0.08
Adjusted EBITDA(1) (000's) 4,829 7,996 25,248 25,710
Adjusted basic and diluted EBITDA per
share(1) 0.03 0.05 0.14 0.15
Cash flow from operating activities
(000's) 4,829 6,122 22,894 23,078
Adjusted cash flow from operating
activities(1) (000's) 4,829 6,122 22,894 24,745
Total cash cost per ounce of gold
sold(1) 732 815 734 890
Gold ounces produced(2) 11,348 10,812 39,160 32,066
-------------------------------------- ------- ------- ------ ------
(1) This is a non-IFRS measure; refer to Non-IFRS
Measures section of this press release and the Company's
Management Discussion & Analysis for a complete definition
and reconciliation to the Company's financial statements.
(2) Production and revenue numbers for Q4 of 2012
include approximately 1,878 ounces of gold and 759
ounces of silver that were part of a sale of loaded
carbon to Waterton Global Value L.P., a company related
to Scorpio Gold.
Peter Hawley, the Company's CEO, comments, "Our 2103 financial results are solid despite a very challenging year for the gold sector. The lower gold price realized in 2013 created our biggest challenge resulting in a loss for the year due to a non-cash impairment charge, but the Mineral Ridge team responded with record high production levels, driving the cost per ounce of gold sold down to record low levels. The mine is running very well and we are forecasting production of 40,000 to 45,000 ounces of gold in 2014 at a conservative estimate of cash costs of $800 to $850 per ounce of gold sold."
2013 HIGHLIGHTS AND SUBSEQUENT EVENTS
-- 39,160 ounces of gold produced at the Mineral Ridge mine, compared to
32,066 ounces during 2012, an increase of 22%.
-- Increased revenue of $54.6 million compared to $52.6 million during 2012,
mainly due to a 24% increase in ounces of gold sold, offset by a lower
average gold price during 2013.
-- Improved total cash cost per ounce of gold sold(1) of $734 compared to
$890 during 2012. This reduction of 18% is mainly attributable to higher
production levels.
-- Mine operating earnings(1) of $10.8 million compared to $17.1 million
during 2012, mainly due to increased depletion and amortization during
2013, as a result of increased production levels.
-- Net loss of $6.8 million ($0.05 basic and diluted per share) after
non-cash impairment charges of $12.6 million ($0.08 basic and diluted per
share), compared to net earnings of $12.6 million ($0.07 basic and
diluted per share) during 2012.
-- Adjusted net earnings(1) of $6.3 million ($0.03 basic and diluted per
share) compared to $13.8 million ($0.08 basic and diluted per share)
during 2012, mainly due to increased depletion and amortization during
2013.
-- Adjusted EBITDA(1) of $25.2 million ($0.14 basic and diluted per share)
compared to $25.7 million ($0.15 basic and diluted per share) during
2012.
-- Adjusted cash flow from operating activities(1) of $22.9 million compared
to $24.7 million during 2012.
-- Receipt of approval for the new plan of operations at the Mineral Ridge
mine in February 2014 which allows for expansion of the Mary pit.
-- Sale of the Pinon property on March 5, 2014, with approximately $5.2
million of the proceeds applied to reduce the Company's long term debt
(see the Company's news release of March 5, 2014 for more details).
FOURTH QUARTER 2013 ("Q4") HIGHLIGHTS
-- 11,348 ounces of gold produced at the Mineral Ridge mine compared to
10,812 ounces in Q4 of 2012, an increase of 5%.
-- Revenue of $13.7 million compared to $15.5 million during Q4 of 2012.
This 12% decrease is mainly due to the significant decrease in gold price
for ounces sold despite an 18% increase in gold ounces sold during Q4 of
2013.
-- Improved total cash cost per ounce of gold sold(1) of $732 compared to
$815 during Q4 of 2012. This reduction of 14% is mainly attributable to
higher production levels during Q4 of 2013.
-- Improved cash cost per ounce and higher production levels did not
completely offset the decrease in the average gold price which
consequently negatively impacted the following:
-- Mine operating earnings(1) of $1.8 million compared to $5.0 million
during Q4 of 2012.
-- Net loss of $2.0 million ($0.02 basic and diluted per share), compared to
earnings of $3.7 million ($0.02 basic and diluted per share) during Q4 of
2012. During Q4 of 2013 a non-cash impairment charge of $2.7 million has
been recorded.
-- Adjusted net earnings(1) of $0.8 million ($0.00 basic and diluted per
share) compared to $4.5 million ($0.03 basic and diluted per share)
during Q4 of 2012.
-- Adjusted EBITDA(1) of $4.8 million ($0.03 basic and diluted per share)
compared to $8.0 million ($0.05 basic and diluted per share) during Q4 of
2012.
-- Adjusted cash flow from operating activities(1) of $4.8 million compared
to $6.1 million in Q4 of 2012.
(1) This is a non-IFRS measure; refer to Non-IFRS
Measures section of this press release and the Company's
Management Discussion & Analysis for a complete definition
and reconciliation to the Company's financial statements.
NON-IFRS MEASURES
The discussion of financial results in this press release includes reference to Adjusted EBITDA, Cash Cost per Ounce of Gold Sold, Adjusted Cash Flow from Operating Activities and Adjusted Net Earnings, which are non-IFRS measures. The Company provides these measures as additional information regarding the Company's financial results and performance. Please refer to the Company's MD&A for the year ended December 31, 2013 for definitions of these terms and a reconciliation of these measures to reported IFRS results.
About Scorpio Gold Corporation
Scorpio Gold holds a 70% interest in the Mineral Ridge gold mining operation located in Esmeralda County, Nevada with joint venture partner Waterton Global Value L.P. (30%), and is currently entitled to receive 80% of cash flow generated. Mineral Ridge is currently in production as a conventional open pit mining and heap leach operation. The property is host to multiple gold-bearing structures, veins and bodies at various exploration, development and production stages. Scorpio Gold also owns the Goldwedge advanced exploration-stage property and processing facility in Manhattan, Nevada. The Company is assessing its exploration plans for the Goldwedge property as well as the potential for toll milling at the Goldwedge plant currently permitted for 400 ton per day.
Scorpio Gold's CEO, Peter J. Hawley, P.Geo., is a Qualified Person as defined in National Instrument 43-101 and has reviewed and approved the content of this release.
ON BEHALF OF THE BOARD
SCORPIO GOLD CORPORATION
Peter J. Hawley, CEO
