Elgin Mining Inc. ("Elgin Mining" or the "Company") (TSX: ELG and ELG.WT) reports its financial and operational results for the three months ended June 30, 2013. Elgin Mining owns and operates the Björkdal gold mine ("Björkdal") in Sweden, and holds the past-producing Lupin gold mine ("Lupin") and the Ulu gold property in Nunavut, Canada. All figures are in Canadian dollars ($ or CAD) unless otherwise indicated.
A copy of the Company's financial statements and Management's Discussion and Analysis can be viewed on the Company's website at
Cash provided by operating activities was $1.9 million;
Net loss of $10.6 million which included $1.3 million in Lupin pre- development costs, $4.3 million in after-tax impairment charges relating to mineral properties and investment in associate, and $0.7 million in employee severance costs;
Basic and diluted loss per share of $0.07;
Gold production and cash cost per ounce produced for the first six months of 2013 in line with previously stated guidance for this year (see "Outlook" section below);
To address the rapid decline in the price of gold experienced in the current period, the Company undertook the following actions to manage the Company's existing treasury:
Significantly reduced the Company's cash burn outside of Björkdal by deferring all planned programs at Lupin for 2013, including placing the Lupin camp on care and maintenance indefinitely, and by significantly reducing all corporate general and administration costs through the reduction in staff and elimination of expenditures to essential levels needed to support the Company's key operations and projects; and
Initiated work on a revised flexible short-term mine plan for Björkdal that maximizes cash flow over the next 12 to 18 months that will be based on the optimum mix of open pit, underground and stockpile ore to the plant while minimizing sustaining capital expenditures without jeopardizing the long-term health of the open pit and underground, respectively;
Received the mining permit for the Lake Zone at Björkdal in May 2013 which allowed the Company to process ore stockpiled from this zone in earlier quarters and to extend development drifts to commence further mining of these veins;
Continued progress on the transition from contractor to owner mining in the underground through the receipt of further equipment deliveries and the hiring of more underground miners; and Released an updated mineral resource and reserve estimation for the Björkdal Mine in June 2013 showing an overall increase in reserves and resources, net of mine depletion, from the previous estimation released in March 2012.