SAS Reports Positive 2012 Second Quarter Results with Record Production and
Strong Operating Cash Flow
Canada NewsWire
TORONTO, Aug. 10, 2012
All dollar amounts are stated in Canadian dollars, unless otherwise indicated
TORONTO, Aug. 10, 2012 /CNW/ - St Andrew Goldfields Ltd. (T-SAS), ("SAS" or the
"Company") earned net income attributable to shareholders for the second quarter
2012 of $4.4 million or $0.01 per share as compared to a net loss of $1.2
million, or nil on a per share for the same period last year. Adjusted net
earnings(1) for the quarter were $5.9 million, or $0.02 per share compared to an
adjusted net loss of $3.0 million, or $0.01 per share, for the same period in
2011.
SECOND QUARTER HIGHLIGHTS
* Generated operating cash flow of $9.4 million.
* Achieved record production of 23,016 ounces of gold from three operations
(Holt, Holloway and Hislop).
* Sold 22,495 ounces of gold at an average realized price (1) of US$1,620 per
ounce for revenues of $37.1 million.
* Mine cash costs of US$785 per ounce and a royalty cost of US$134 per ounce,
for a total cash cost per ounce of gold sold (1) of US$919 per ounce.
* Earned cash margin from mine operations (1) of $16.2 million.
* Invested $9.6 million in mine capital expenditures and exploration and
evaluation assets.
* Commenced dewatering activities at the Taylor Project to advance the
underground ramp rehabilitation and development.
* Completed a US$25.0 million secured bank facility and retired all of the
outstanding Gold Notes.
(1) See pages below for an explanation of non-GAAP measures
"We have achieved another record quarter of production, coupled with another
consecutive quarter of positive cash flow from operations meeting our
objectives, and improving on our first quarter results", said Jacques Perron,
President and CEO of SAS. "Production is expected to increase at Holt in the
second half of 2012, and grades at Hislop have been at or better than reserve
grade for the mine. We are confident we will meet our 2012 production target of
90,000 - 100,000 ounces of gold, and unit cost objectives. We have an improved
balance sheet with sufficient cash resources to complete our currently planned
capital programs, and advance our exploration efforts."
Holt Mine, Operations and Financial Review (see Operating and Financial
Statistics on page 10)
For the second quarter of 2012, the Holt Mine ("Holt") produced 11,193 ounces of
gold, a slight increase over the previous quarter due to a 15% increase in
throughput. The head grade mined during the quarter was slightly above the
Company's expectation and recovery was at the planned level.
When compared to the previous quarter, gold sales were impacted by a 4% decrease
in the average realized price per ounce of gold sold (1); partially offset by a
1% increase in the CAD:USD exchange rate. This resulted in a 2% decrease in cash
margin from mine operations(1) compared to the previous quarter.
Mine-site cost per tonne milled(1) for the second quarter decreased by 16% when
compared to the previous quarter mainly due to increased throughput, combined
with lower heating costs. The Company expects the mine-site cost per tonne
milled(1) will continue to improve as the mining rate at Holt increases.
Total cash cost per ounce of gold sold(1) was consistent with the previous
quarter.
Holloway Mine, Operations and Financial Review (see Operating and Financial
Statistics on page 11)
Production at the Holloway Mine ("Holloway") of 5,923 ounces of gold from the
Smoke Deep Zone ("Smoke Deep") improved by 17% over the previous quarter due to
increased throughput and a marginally better head grade. The increase in gold
production during the quarter led to a 14% increase in gold sales over the
previous quarter.
Mine-site cost per tonne milled(1) in the quarter decreased by 22% or $23 per
tonne when compared to the previous quarter due to increased throughput, lower
heating costs, and redeployment of manpower to Holt.
Total cash cost per ounce of gold sold(1) decreased by US$181 per ounce over the
previous quarter mainly due to the decrease in mine-site costs associated with
higher throughput and resulted in an increase in cash margin from mine
operations(1) of $1.3 million.
The Company expects the operating costs at Holloway will remain at around the
same level as achieved during the second quarter.
Hislop Mine, Operations and Financial Review (see Operating and Financial
Statistics on page 12)
The Hislop Mine ("Hislop") produced 5,899 ounces of gold during the second
quarter of 2012. The head grade averaged 2.21 g/t Au, which was substantially
higher than the reserve grade of 1.88 g/t Au. Mining is progressing as planned
and surface excavation is completed to the final pit perimeter in all areas.
Recovery for Hislop during the second quarter averaged 85.6%, slightly below
expectations. The ore grade is expected to range from 1.88 g/t Au to 2.00 g/t Au
for 2012, depending on the mining area in the pit.
Gold sales in the quarter increased by 17% over the previous quarter due to an
18% increase in head grade, partially offset by a 4% decrease in the average
realized price per ounce of gold sold(1).
Mine-site cost per tonne milled(1) for the second quarter of 2012 was $61 per
tonne, which was in line with expectations. Total cash cost per ounce of gold
sold(1) decreased by US$165 per ounce over the previous period mainly due to the
increase in ore grade, which also resulted in an increase in cash margin from
mine operations of $1.1 million.
Holt Mill Performance
The Holt Mill processed 228,781 tonnes of ore from the Holt, Holloway and Hislop
mines in the second quarter of 2012 as compared to 209,748 tonnes of ore from
the three mining operations in the previous period. This represents an average
milling rate of 2,500 tonnes per day or 96% of the mill capacity. Availability
was 89.9%, lower than anticipated due to power outages and regular mill
maintenance.
Taylor Project Update
A stepped approach is being taken in order to improve the quality of information
prior to allocating total capital expenditures for the development activities at
the West Porphyry Zone ("WPZ"). Once underground access is re-established, SAS
will validate its geological model, mining method and mill recovery rate by
initiating a bulk sampling program. Dewatering activities commenced in late
April and partial underground access has now been established. Development of
the underground ramp is forecast to commence in August in preparation for an
initial bulk sampling program on the first lens of the WPZ. The Company expects
to process the first bulk sample towards the end of the year. See press release
dated August 8, 2012, available under the Company's profile on SEDAR at
www.sedar.com, and on the Company's website at www.sasgoldmines.com.
Exploration Projects
Exploration activities during the second quarter of 2012 were focused on surface
drilling at the Ghost Zone ("Ghost") near Holt and the Hislop North Project
("Hislop North") located northwest of the Hislop pit. Recent results from the
Ghost and Hislop North projects were encouraging (see press release dated July
31, 2012, available under the Company's profile on SEDAR at www.sedar.com and on
the Company's website at www.sasgoldmines.com). A small infill drilling program
was also conducted at Taylor. On a year-to-date basis, more than 28,000 metres
of core drilling has been completed on the Company's exploration targets. In the
second half of this year, drilling will continue at the Ghost and Hislop North
targets, and surface drilling has commenced on the westerly extension of Zone 4
at the Holt Mine.
Financial Performance
Commercial gold production sold in the second quarter of 2012 increased by 48%
from the same period in 2011 due to the commencement of mining operations at
Holt in the second quarter of 2011, and increased by 11% when compared to the
previous quarter.
For the second quarter of 2012, mine cash cost per ounce of gold sold decreased
by US$393 per ounce from the second quarter of 2011 as a result of the addition
of Holt, and decreased by US$73 per ounce when compared to the previous quarter
due to increased production and lower operating unit costs. The increase in
revenue in the second quarter resulted in an increase in cash margin from mine
operations(1) of $2.3 million when compared to the previous quarter.
Mark-to-market loss on the gold-linked derivatives in the current quarter was
$0.8 million which resulted from the retirement of the Gold Notes. The Company
also incurred a foreign currency transaction and translation loss of $0.6
million as a result of the fluctuation of the US dollar to the Canadian dollar
exchange rate. Similarly, the Company also incurred a mark-to-market loss of
$0.8 million on foreign currency derivatives during the quarter.
Capital Resources
At the end of the quarter, the Company had cash and cash equivalents of $16.9
million. After completion of the bank financing on May 8, 2012, the Company has
access to additional cash resources by way of a US$10.0 million revolving credit
facility. In conjunction with the expected cash flows from operations, the
Company believes it has sufficient capital resources to finance its ongoing
capital programs at the mines and to finance the further advancement of Taylor
and other advanced stage exploration projects.
(1) See pages below for an explanation of non-GAAP measures
Q2 2012 Conference Call Information
SAS is scheduled to release its 2012 second quarter results on Friday, August
10, 2012. A conference call and webcast is scheduled for 10:00am EST, Monday,
August 13, 2012. Participants may join the call by dialling 1-866-212-4491 (toll
free within North America) or 1-416-800-1066 (outside North America) with the
password "St Andrew Goldfields". The Company will post accompanying power point
slides for the call on the website the morning of August 13, 2012. For further
information, please see the Company's website at www.sasgoldmines.com.
A recorded playback of the call will also be available via the website and will
be posted within 24 hours of the call.
Qualified Person
Production and ongoing development programs at the Holt, Holloway and Hislop
mines, and processing at the Holt Mill, as well as rehabilitation and
development activities at the Taylor Project are being conducted under the
supervision of Duncan Middlemiss, P.Eng, the Company's COO and VP of Operations.
The exploration programs on the Company's various mineral properties are under
the supervision of Craig Todd, P.Geo, the Company's Exploration Manager. Messrs.
Middlemiss and Todd are qualified persons as defined by National
Instrument43-101, and have reviewed and approved this news release.
Non-GAAP Measures
The Company has included the non-GAAP performance measures, adjusted net
earnings (loss), average realized price per ounce of gold sold, total cash
costs per ounce of gold sold, cash margin from mine operations and mine-site
cost per tonne milled, throughout this news release, which do not have
standardized meanings prescribed by International Financial Reporting Standards
("IFRS") and are not necessarily comparable to other similarly titled measures
of other companies due to potential inconsistencies in the method of
calculation. The Company believes that, in addition to conventional measures
prepared in accordance with IFRS, the Company and certain investors use this
information to evaluate the Company's performance. Accordingly, it is intended
to provide additional information and should not be considered in isolation or
as a substitute for measures of performance prepared in accordance with IFRS.
Refer to pages 6-9 of this news release for a discussion and the reconciliation
of these non-GAAP measurements to the Company's Unaudited Condensed Interim
Financial Report for the three and six months ended June 30, 2012.
The Unaudited Balance Sheets, Statements of Operations and Statements of Cash
Flows for the Company for the three and six months ended June 30, 2012, can be
found on pages 13-15.
To review the complete Unaudited Condensed Financial Report for the three and
six months ended June 30, 2012, and the Interim Management's Discussion and
Analysis for the second quarter 2012, please see SAS's SEDAR filings under the
Company's profile at www.sedar.com or the Company's website at
www.sasgoldmines.com.
About SAS
SAS (operating as "SAS Goldmines"), is a gold mining and exploration company
with an extensive land package in the Timmins mining district, north-eastern
Ontario, which lies within the Abitibi greenstone belt, the most important host
of historical gold production in Canada.
SAS owns and operate the Holt, Holloway and Hislop mines and is forecasting 2012
production of between 90,000 - 100,000 ounces of gold. The Company is also
advancing the Taylor Project and is conducting an aggressive exploration program
across 120km of land straddling the Porcupine-Destor Fault Zone.
FORWARD-LOOKING INFORMATION
This news release contains forward-looking information and forward-looking
statements (collectively, "forward-looking information") under applicable
securities laws, concerning the Company's business, operations, financial
performance, condition and prospects, as well as management's objectives,
strategies, beliefs and intentions. Forward-looking information is frequently
identified by such words as "may", "will", "plan", "expect", "estimate",
"anticipate", "believe", "intend" and similar words referring to future events
and results, including in respect of the targeted gold production levels at the
Company's three operating mines for 2012; the improvement in throughput and the
impact on operating costs at Holt; the reduction in operating costs at Holt; the
maintenance of ore grades at Hislop; the rehabilitation of the underground mine
workings at Taylor and the completion of an initial bulk sample, and the timing
thereof; the continuance of the exploration programs at the Ghost Zone, Hislop
North, and Zone 4 targets; and the sufficiency of the Company's cash flow and
cash resources to finance its capital programs and the advancement of Taylor and
other advance stage exploration projects.
This forward-looking information is subject to known and unknown risks,
uncertainties and other factors that may cause actual results to differ
materially from those expressed or implied by the forward-looking information.
Factors that may cause actual results to vary materially include, but are not
limited to, unanticipated operational or technical difficulties which could
escalate operating and/or capital costs and reduce anticipated production
levels; uncertainties relating to the interpretation of the geology, continuity,
grade and size estimates of the mineral reserves and resources; fluctuations in
gold prices and exchange rates; operational hazards and risks; compliance with
applicable government regulations, including the ability to obtain requisite
permits and licenses; dependence on key employees and changes in general
economic conditions and changes in conditions in the financial markets. Such
forward looking information is based on a number of assumptions, including but
not limited to the level and volatility of the price of gold, the ability to
achieve capital and operating cost estimates, the accuracy or reserve and
resource estimates and the assumptions upon which such estimates are based, the
continued availability of qualified personnel, and the sufficiency of the
Company's cash reserves and operating cash flow to complete planned development
and exploration activities. Should one or more risks and uncertainties
materialize or should any assumptions prove incorrect, then actual results could
vary materially from those expressed or implied in the forward-looking
information and accordingly, readers are cautioned not to place undue reliance
on this forward-looking information. SAS does not assume the obligation to
revise or update this forward-looking information after the date of this release
or to revise such information to reflect the occurrence of future unanticipated
events, except as may be required under applicable securities laws. A
description of these risks and uncertainties are can also be found in the
Company's Annual Information Form obtained on SEDAR at www.sedar.com.
NON-GAAP MEASURES
Adjusted net earnings (loss)
Adjusted net earnings (loss) are calculated by removing the gains and losses,
resulting from the mark-to-market revaluation of the Company's gold-linked
liabilities and foreign currency price protection derivative contracts, one-time
gains or losses on the disposition of non-core assets and expenses and
significant tax adjustment not related to current period's earnings, as detailed
in the table below. Adjusted net earnings (loss) does not constitute a measure
recognized by IFRS and does not have a standardized meaning defined by IFRS and
may not be comparable to information in other gold producers' reports and
filings. The Company discloses this measure, which is based on its Financial
Report, to assist in the understanding of the Company's operating results and
financial position.
Three months ended Six months ended June 30,
June 30, March 31, June 30,
Amounts in thousands of Canadian dollars, except per share amounts 2012 2012 2011 2012 2011
Net income (loss) per Financial Reports $ 4,357 $ 2,734 $ (1,233) $ 7,091 $ (3,986)
Reversal of income and mining tax asset valuation allowance - - (4,354) - (4,354)
Mark-to-market loss on gold-linked liabilities 815 822 937 1,637 926
Mark-to-market loss (gain) on foreign currency derivatives 777 (1,755) 635 (978) 542
Proceeds from insurance claim - (338) - (338)
Loss on the divestiture of non-core assets - - 1,353 - 1,353
Adjusted net earnings (loss) $ 5,949 $ 1,801 $ (3,000) $ 7,750 $ (5,857)
Weighted average number of shares outstanding (000s)
Basic 368,245 368,245 367,858 368,245 367,787
Diluted 368,359 368,782 370,257 368,592 370,463
Adjusted net earnings (loss) per share - basic and diluted $ 0.02 Nil $ (0.01) $ 0.02 $ (0.02)
Total cash cost per ounce of gold sold
Total cash cost per ounce of gold sold is a non-GAAP performance measure and may
not be comparable to information in other gold producers' reports and filings.
The Company has included this non-GAAP performance measure throughout this
document as the Company believes that this generally accepted industry
performance measure provides a useful indication of the Company's operational
performance. The Company believes that, in addition to conventional measures
prepared in accordance with IFRS, certain investors use this information to
evaluate the Company's performance and ability to generate cash flow.
Accordingly, it is intended to provide additional information and should not be
considered in isolation or as a substitute for measures of performance prepared
in accordance with IFRS. The following table provides a reconciliation of total
cash costs per ounce of gold sold to production expenses per the Financial
Report for the three and six months ended June 30, 2012:
Three months ended Six months ended June 30,
Amounts in thousands of Canadian dollars, except where indicated June 30, March 31, June 30, 2012 2011
2012 2012 2011
Mine-site costs per Financial Reports $ 17,831 $ 17,451 $ 17,282 $ 35,282 $ 28,947
Production royalties per Financial Reports 3,046 2,922 1,449 5,968 2,278
Adjustments (1) - (99) - (99) -
Total cash costs $ 20,877 $ 20,274 $ 18,731 $ 41,151 $ 31,225
Divided by gold ounces sold (2) 22,495 20,325 15,160 42,820 26,900
Total cash cost per ounce of gold sold (Canadian dollars) $ 928 $ 996 $ 1,236 $ 961 $ 1,161
Average CAD:USD exchange rate $ 1.01 $ 1.00 $ 0.97 $ 1.01 $ 0.98
Total cash cost per ounce of gold sold (US$) $ 919 $ 996 $ 1,277 $ 956 $ 1,188
Breakdown of total cash cost per ounce of gold sold (US$)
Holt Mine (2)
Mine cash costs $ 671 $ 670 $ 1,255 $ 671 $ 1,255
Royalty costs 166 168 136 167 136
$ 837 $ 838 $ 1,391 $ 838 $ 1,391
Holloway Mine
Mine cash costs $ 771 $ 948 $ 964 $ 852 $ 887
Royalty costs 205 209 164 207 134
$ 976 $ 1,157 $ 1,128 $ 1,059 $ 1,021
Hislop Mine (2)
Mine cash costs $ 1,020 $ 1,185 $ 1,311 $ 1,095 $ 1,306
Royalty costs - - - - -
$ 1,020 $ 1,185 $ 1,311 $ 1,095 $ 1,306
Total
Mine cash costs $ 785 $ 858 $ 1,178 $ 819 $ 1,101
Royalty costs 134 138 99 137 87
$ 919 $ 996 $ 1,277 $ 956 $ 1,188
Notes:
(1) In the first quarter of 2012, the Company accrued a royalty liability of $99 at Holloway which was incurred during the period from August
2011 to December 2011. This amount has been retroactively applied to the calculation of the total cash cost per ounce of gold sold for
each of these quarters, respectively.
(2) Commercial operations at Holt and Hislop commenced on April 1, 2011, and July 1, 2010, respectively.
Mine-site cost per tonne milled
Mine-site cost per tonne milled is a non-GAAP performance measure and may not be
comparable to information in other gold producers' reports and filings. As
illustrated in the table below, this measure is calculated by adjusting
Production Costs, as shown in the statements of operations for inventory level
changes and then dividing by tonnes processed through the mill. Since total cash
cost per ounce of gold sold data can be affected by fluctuations in foreign
currency exchange rates, Management believes that mine-site cost per tonne
milled provides additional information regarding the performance of mining
operations and allows Management to monitor operating costs on a more consistent
basis as the per tonne milled measure eliminates the cost variability associated
with varying production levels. Management also uses this measure to determine
the economic viability of mining blocks. As each mining block is evaluated based
on the net realizable value of each tonne mined, in order to be economically
viable, the estimated revenue on a per tonne basis must be in excess of the
mine-site cost per tonne milled. Management is aware that this per tonne milled
measure is impacted by fluctuations in production levels and thus uses this
evaluation tool in conjunction with production costs prepared in accordance with
IFRS. This measure supplements production cost information prepared in
accordance with IFRS and allows investors to distinguish between changes in
production costs resulting from changes in production versus changes in
operating performance.
Three months ended Six months ended June 30,
Amounts in thousands of Canadian dollars, except per tonne amounts June 30, March 31, June 30, 2012 2011
2012 2012 2011
Holt Mine (2)(3)
Mine-site costs $ 7,508 $ 7,163 $ 6,045 $ 14,671 $ 6,045
Inventory adjustments (1) (6) 611 528 605 528
Mine-site operating costs $ 7,502 $ 7,774 $ 6,573 $ 15,276 $ 6,573
Divided by tonnes of ore milled 78,429 67,937 $ 54,538 146,366 54,538
Mine-site cost per tonne milled $ 96 $ 114 $ 121 $ 104 $ 121
Holloway Mine
Mine-site costs $ 4,472 $ 4,659 $ 4,658 $ 9,131 $ 10,710
Inventory adjustments (1) (92) 281 (334) 189 (773)
Mine-site operating costs $ 4,380 $ 4,940 $ 4,324 $ 9,320 $ 9,937
Divided by tonnes of ore milled 53,169 47,151 47,971 100,320 98,596
Mine-site cost per tonne milled $ 82 $ 105 $ 90 $ 93 $ 101
Hislop Mine (2)
Mine-site costs $ 5,851 $ 5,629 $ 6,579 $ 11,480 $ 12,192
Inventory adjustments (1) 62 167 14 229 1,158
Mine-site operating costs $ 5,913 $ 5,796 $ 6,593 $ 11,709 $ 13,350
Divided by tonnes of ore milled 97,183 94,660 120,677 191,843 231,552
Mine-site cost per tonne milled $ 61 $ 61 $ 55 $ 61 $ 58
Notes:
(1) This inventory adjustment reflects production costs associated with unsold bullion and in-circuit inventory.
(2) Commercial operations at Holt and Hislop commenced on April 1, 2011, and July 1, 2010, respectively.
(3) Excludes 43,458 tonnes of development ore processed while Holt was in pre-production producing 5,435 ounces of gold in 2011.
Cash margin from mine operations
Cash margin from mine operations is a non-GAAP measure which may not be
comparable to information in other gold producers' reports and filings. It is
calculated as the difference between gold sales and production costs (comprised
of mine-site operating costs and production royalties) per the Company's
Financial Report. The Company believes it illustrates the performance of the
Company's operating mines and enables investors to better understand the
Company's performance in comparison to other gold producers who present results
on a similar basis.
Three months ended Six months ended June 30,
Amounts in thousands of Canadian dollars June 30, March 31, June 30, 2012 2011
2012 2012 2011
Gold sales per Financial Reports $ 37,073 $ 34,296 $ 22,135 $ 71,369 $ 38,078
Mine site operating costs per Financial Reports 17,831 17,451 17,282 35,282 28,947
Production royalties per Financial Reports 3,046 2,922 1,449 5,968 2,278
20,877 20,373 18,731 41,250 31,225
Cash margin from mine operations $ 16,196 $ 13,923 $ 3,404 $ 30,119 $ 6,853
Breakdown of cash margin from mine operations by mines:
Holt Mine $ 8,886 $ 9,054 $ 582 $ 17,940 $ 582
Holloway Mine 3,805 2,492 1,822 6,297 4,937
Hislop Mine 3,505 2,377 1,000 5,882 1,334
$ 16,196 $ 13,923 $ 3,404 $ 30,119 $ 6,853
Average realized price per ounce of gold sold
Average realized price per ounce of gold sold is a non-GAAP measure and is
calculated by dividing gold sales as reported in the Company's Financial Report
by the gold ounces sold. It may not be comparable to information in other gold
producers' reports and filings.
Operating and Financial Statistics - Holt Mine
Amounts in thousands of Canadian dollars, except where indicated Three months ended Six months ended June 30,
June 30, March 31, December September June 30, 2012 2011
2012 2012 31, 2011 30, 2011 2011
Tonnes milled 78,429 67,937 67,778 66,556 54,538 146,366 97,996
Head grade (g/t Au) 4.71 5.36 5.57 5.01 3.39 5.01 3.73
Average mill recovery 94.2% 94.1% 94.1% 93.4% 92.5% 94.2% 93.1%
Gold produced (ounces) 11,193 11,025 11,421 10,012 5,508 22,218 10,943
Commercial gold production sold (ounces) (1) 11,073 10,674 12,175 8,870 4,979 21,747 4,979
Gold sales (1) $ 18,250 $ 18,015 $ 21,060 $ 15,449 $ 7,284 $ 36,265 $ 7,284
Cash margin from mine operations (2) $ 8,886 $ 9,054 $ 12,054 $ 6,625 $ 582 $ 17,940 $ 582
Mine-site cost per tonne milled (2) $ 96 $ 114 $ 95 $ 106 $ 121 $ 104 $ 121
Total cash cost per ounce of gold sold (US dollars)(2):
Mine cash costs $ 671 $ 670 $ 556 $ 833 $ 1,255 $ 671 $ 1,255
Royalty costs 166 168 166 181 136 167 $ 136
Total cash cost per ounce of gold sold (2) 837 838 722 1,014 1,391 838 1,391
Depreciation and depletion 161 145 129 134 130 153 130
Total production cost per ounce of gold sold (US dollars) $ 998 $ 983 $ 851 $ 1,148 $ 1,521 $ 991 $ 1,521
Average CAD:USD exchange rate 1.01 1.00 1.02 0.98 0.97 1.01 0.97
Capital expenditures $ 5,036 $ 3,177 $ 4,250 $ 1,841 $ 1,963 $ 8,213 $ 3,703
Notes:
(1) Holt commenced commercial production on April 1, 2011. The operating results for the mine prior to April 1, 2011, were classified as site maintenance and pre-production expenditures.
(2) Total cash cost per ounce of gold sold, mine-site cost per tonne milled and cash margin from mine operations are non-GAAP measures and are not necessarily comparable to similarly titled measures of other companies due to potential inconsistencies in the method of calculation (see pages above for non-GAAP measurements).
Operating and Financial Statistics - Holloway Mine
Amounts in thousands of Canadian dollars, except where indicated Three months ended Six months ended June 30,
June 30, March 31, December September June 30, 2012 2011
2012 2012 31, 2011 30, 2011 2011
Tonnes milled 53,169 47,151 56,225 49,437 47,971 100,320 98,596
Head grade (g/t Au) 3.80 3.77 4.03 3.71 3.43 3.78 3.79
Average mill recovery 91.2% 88.6% 84.1% 85.2% 85.0% 90.0% 85.8%
Gold produced (ounces) 5,923 5,058 6,126 5,026 4,497 10,981 10,310
Commercial gold production sold (ounces) (1) 5,744 4,907 6,208 5,130 4,996 10,651 12,360
Gold sales (2) $ 9,467 $ 8,275 $ 10,750 $ 8,828 $ 7,272 $ 17,742 $ 17,268
Cash margin from mine operations (3) $ 3,805 $ 2,492 $ 4,116 $ 2,931 $ 1,822 $ 6,297 $ 4,937
Mine-site cost per tonne milled (3) $ 82 $ 105 $ 93 $ 98 $ 90 $ 93 $ 101
Total cash cost per ounce of gold sold (US dollars) (3):
Mine cash costs $ 771 $ 948 $ 853 $ 960 $ 964 $ 852 $ 887
Royalty costs (4) 205 209 203 218 164 207 134
Total cash cost per ounce of gold sold (3) 976 1,157 1,056 1,178 1,128 1,059 1,021
Depreciation and depletion 376 368 368 540 462 372 392
Total production cost per ounce of gold sold (US dollars) $ 1,352 $ 1,525 $ 1,424 $ 1,718 $ 1,590 $ 1,431 $ 1,413
Average CAD:USD exchange rate 1.01 1.00 1.02 0.98 0.97 1.01 0.98
Capital expenditures $ 2,539 $ 4,342 $ 3,666 $ 2,938 $ 2,986 $ 6,881 $ 5,765
Notes:
(1) Holloway commenced production in October 2009.
(2) Excluding the three months ended March 31, 2012 and June 30, 2012, gold sales include 1,860 ounces of gold delivered to the Gold Note holders in each of the quarters during 2011.
(3) Total cash cost per ounce of gold sold, mine-site cost per tonne milled and cash margin from mine operations, are non-GAAP measures and are not necessarily comparable to similarly titled measures of other companies due to potential inconsistencies in the method of calculation (see pages above for non-GAAP measurements).
(4) In the first quarter of 2012, the Company accrued a royalty liability of $99 at Holloway which was incurred during the period from August 2011 to December 2011. This amount has been retroactively applied to the calculation of the total cash cost per ounce of gold sold for each of these quarters, respectively.
Operating and Financial Statistics - Hislop Mine
Amounts in thousands of Canadian dollars, except where indicated Three months ended Six months ended June 30,
June 30, March 31, December September June 30, 2012 2011
2012 2012 31, 2011 30, 2011 2011
Overburden stripped (m3) 29,236 4,212 103,346 300,249 472,214 33,448 763,521
Tonnes mined (ore) 76,764 118,918 107,827 109,457 114,849 195,682 231,987
(waste) 536,015 680,221 599,330 738,054 1,303,072 1,216,236 2,230,288
612,779 799,139 707,157 847,511 1,417,921 1,411,918 2,462,275
Waste-to-Ore Ratio 7.0 5.7 5.6 6.7 11.3 6.2 9.6
Tonnes milled 97,183 94,660 92,794 107,741 120,677 191,843 231,552
Head grade (g/t Au) 2.21 1.88 1.94 1.68 1.53 2.04 1.59
Average mill recovery 85.6% 86.4% 83.0% 85.4% 87.2% 85.9% 87.6%
Gold produced (ounces) 5,899 4,935 4,803 4,980 5,192 10,834 10,401
Commercial gold production sold (ounces) (1) 5,678 4,744 4,985 5,260 5,185 10,422 9,561
Gold sales $ 9,356 $ 8,006 $ 8,625 $ 9,068 $ 7,579 $ 17,362
- More to follow, for following part double click [ID:nCNWC6232b]
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