financials out, looks good.
10,769 ounces of gold produced compared to 7,394 during Q2 of 2012.
• Increased revenue of $14.8 million compared to $12.5 million during Q2 of 2012, mainly due to increased
production and higher grades which resulted in a higher number of ounces sold albeit a lower average gold
price.
• Improved total cash cost per ounce of gold sold(1) of $713 compared to $965 during Q2 of 2012 mainly
attributable to higher production level as well as higher head grade.
• Mine operating earnings (1) of $3.3 million compared to $3.4 million during Q2 of 2012.
• Net loss of $7.8 million ($0.05 basic and diluted per share) following non-cash impairment charges of $9.9
million ($0.06 basic and diluted per share), compared to net earnings of $2.6 million ($0.01 basic and
diluted per share) during Q2 of 2012.
• Adjusted net earnings (1) of $2.7 million ($0.01 basic and diluted per share) compared to $2.6 million ($0.01
basic and diluted per share) during Q2 of 2012.
• Increased adjusted EBITDA (1) of $8.0 million ($0.04 basic and diluted per share) compared to $4.7 million
($0.03 basic and diluted per share) during Q2 of 2012, as a result of increased revenue and lower cash
costs.
• Adjusted cash flow from operating activities (1) of $5.4 million down from $7.5 million during Q2 of 2012,
mainly due to an increase in inventory level during Q2 of 2013.
(1) This is a non-IFRS measure; please see Non-IFRS performance measures section.
Management Discussion and Analysis
For the six months ended June 30, 2013
2
HIGHLIGHTS FOR THE SIX MONTHS ENDED JUNE 30, 2013
• 18,180 ounces of gold produced compared to 14,591 during the six months ended June 30, 2012.
• Increased revenue of $26.5 million compared to $25.4 million during the six months ended June 30, 2012,
mainly due to increased production and higher grades which resulted in a higher number of ounces sold
albeit a lower average gold price.
• Improved total cash cost per ounce of gold sold(1) of $738 compared to $944 during the six months ended
June 30, 2012, mainly attributable to higher production level as well as higher head grade.
• Mine operating earnings (1) of $6.5 million compared to $8.3 million during the six months ended June 30,
2012.
• Net loss of $5.7 million ($0.04 basic and diluted per share) following non-cash impairment charges of $9.9
million ($0.06 basic and diluted per share), compared to net earnings $5.7 million ($0.03 basic and diluted
per share) during the six months ended June 30, 2012.
• Adjusted net earnings (1) of $4.8 million ($0.02 basic and diluted per share) compared to $6.8 million ($0.04
basic and diluted per share) during the six months ended June 30, 2012.
• Increased adjusted EBITDA (1) of $14.5 million ($0.08 basic and diluted per share) compared to $10.7
($0.06 basic and diluted per share) million during the six months ended June 30, 2012 as a result of
increased revenue and lower cash costs.
• Adjusted cash flow from operating activities (1) of $11.5 million down from $14.3 million during the six
months ended June 30, 2012, mainly due to an increase in inventory level during Q2 of 2013.
UPDATED 2013 PRODUCTION AND OPERATING GUIDANCE
• 2013 gold production now forecast to be between 35,000 and 40,000 ounces compared to earlier guidance
of between 32,000 and 35,000 ounces.
• Total cash cost now forecast to be between $700 and $800 per ounce compared to earlier guidance of
between $800 and $900 per ounce. (For more information on the parameters and assumptions upon which
the updated production and operating guidance is based, please see the “Outlook” section below).
As of June 30, 2013, the Company had $2.4 million in cash compared to $2.0 million as of December 31, 2012.
Working capital was $8.5 million as of June 30, 2013 compared to $5.9 million as of December 31, 2012. The
Company anticipates that it will make the required payments on its debt and fund its planned capital expenditures
and other cash requirements from cash flow from operations at Mineral Ridge. However, if cash flow is insufficient,
additional financing will be required.
