HALIFAX, Aug. 12, 2013 /PRNewswire/ - Brigus Gold Corp.
("Brigus" or the "Company") (NYSE MKT: BRD; TSX: BRD) today
reported financial results for the second quarter ended
June 30, 2013.
Wade Dawe,
Chairman and CEO of Brigus Gold, commented: "Overall, we are
pleased with Brigus' production
and operating results for the second quarter. During the
quarter, the Brigus team produced
23,304 ounces of gold and achieved solid operating results, despite
a temporary shutdown of the Mill for 20% of the quarter. The Black
Fox mine and mill are performing well and we look forward to
stronger operating results and lower all-in sustaining cash costs
in the third and fourth quarters."
Second Quarter 2013 Financial
Highlights
- Sold 22,490 ounces of gold, a 22% increase over Q2 2012
- Decreased long-term debt by $7.3
million
- Revenue of $30.4 million, a 7%
increase over Q2 2012
- Further reduced 2013 budgeted capital spending by $3 million, to $38.5
million
Second Quarter 2013 Operational
Highlights
- Produced 23,304 ounces of gold, a 28% increase over Q2
2012
- Processed 154,667 tonnes of ore at 4.97 grams per tonne ("gpt")
and a 94% recovery
- Completed overburden removal and commenced production from
Phase 3 of the open pit
- Increased 2013 production guidance to 95,000 - 105,000
ounces of gold
Consolidated Financial Results
(in thousands, except per share amounts and
ounces) |
Q2 2013 |
Q2 2012 |
YTD 2013 |
YTD 2012 |
Revenue from the sale of gold |
$30,401 |
$28,422 |
$74,229 |
$54,245 |
Operating costs |
$32,760 |
$23,736 |
$61,339 |
$46,079 |
(Loss) income from operations |
$(2,359) |
$4,686 |
$12,830 |
$8,166 |
Total net (loss) income |
$(4,741) |
$416 |
$9,000 |
$5,936 |
Basic and diluted (loss) earnings per share |
$(0.02) |
$0.00 |
$0.04 |
$0.03 |
Adjusted cash flow from
operations(1) |
$10,956 |
$11,379 |
$35,318 |
$20,245 |
Gold sales in ounces |
22,490 |
18,419 |
50,308 |
34,452 |
Cash cost per ounce gold sold(1) |
$908 |
$799 |
$754 |
$826 |
All-in sustaining cash cost per ounce of gold
sold(1) (2) |
$1,365 |
$1,717 |
$1,220 |
$1,832 |
(1) |
Adjusted cash flow from operations, cash cost per ounce gold
sold and all-in sustaining cash cost per ounce of gold sold are
non-GAAP measures and are not necessarily comparable to similar
titled measures of other companies due to potential inconsistencies
in the method of calculation. Please see the Company's Q22013
Management Discussion and Analysis for a reconciliation of these
non-GAAP measures. |
(2) |
The term "all-in sustaining cash costs per ounce" is used on
a per ounce of gold sold basis. All-in sustaining cash costs
per ounce commences with total cash costs and then adds sustaining
capital expenditures, corporate general and administrative costs,
and environmental rehabilitation costs. This measure seeks to
represent the total costs of sustaining gold production from
current operations. It does not include capital expenditures
attributable to project or mine expansion, exploration and
evaluation costs attributable to growth projects, or interest
costs. |
Results from Operations
(in thousands, except per share amounts and
ounces) |
Q2 2013 |
Q2 2012 |
YTD 2013 |
YTD 2012 |
Metal Sales |
|
|
|
|
Gold (ounces) |
22,490 |
18,419 |
50,308 |
34,452 |
Silver (ounces) |
1,211 |
1,191 |
2,594 |
2,049 |
Average realized gold price ($/ounce) |
$1,352 |
$1,543 |
$1,475 |
$1,575 |
Production |
|
|
|
|
Open Pit Mine |
|
|
|
|
Ore tonnes mined |
149,825 |
192,041 |
348,824 |
412,621 |
Operating waste tonnes mined |
1,331,311 |
1,332,625 |
1,958,179 |
2,659,987 |
Capital stripping tonnes mined |
561,659 |
691,635 |
665,105 |
1,444,995 |
Overburden tonnes mined |
294,851 |
- |
2,171,190 |
- |
Total tonnes mined - Open Pit Mine |
2,337,646 |
2,216,301 |
5,143,298 |
4,517,603 |
|
|
|
|
|
Underground Mine |
|
|
|
|
Ore tonnes mined |
82,616 |
36,604 |
154,033 |
71,751 |
Total Tonnes Mined |
2,420,262 |
2,252,905 |
5,297,331 |
4,589,354 |
|
|
|
|
|
Tonnes milled |
154,667 |
178,002 |
338,486 |
358,967 |
Tonnes milled per day |
1,700 |
1,956 |
1,870 |
1,972 |
Head grade of ore (gpt) |
4.97 |
3.31 |
4.85 |
3.17 |
Recovery (%) |
94% |
96% |
94% |
96% |
Gold ounces produced |
23,304 |
18,254 |
49,620 |
35,176 |
|
|
|
|
|
Cash costs ($/ounce) |
$908 |
$799 |
$754 |
$826 |
Operating margin ($/ounce) |
$444 |
$744 |
$721 |
$749 |
All-in sustaining cash cost ($/ounce) |
$1,365 |
$1,717 |
$1,220 |
$1,832 |
Brigus is
increasing production guidance from 90,000 - 100,000 to 95,000 -
105,000 ounces of gold, at a per ounce cash cost between
$650 - $700 for 2013.
Cost management remained a focus for the Company
during the quarter. Brigus has
further reduced budgeted capital spending for mine development and
other sustaining capital requirements from $41.5 million to $38.5
million for 2013. Management implemented a series of cost
saving measures during the quarter including headcount reductions
and price concessions from key suppliers.
All-in sustaining cash costs for the quarter
were impacted by several non-routine events including the
recognition of a net realizable value adjustment on the low grade
ore stockpile, and a suspension of milling operations for 19 days,
which resulted in the loss of approximately 40,000 tonnes of mill
throughput. Excluding the impact of the net realizable value
adjustment, all-in sustaining cash costs would have been
$1,280 per ounce for the quarter and
$1,184 on a year to date basis.
All-in sustaining costs in Q1 2013 were $1,103. Brigus
expects all-in sustaining costs during Q3 and Q4 to be consistent
with Q1 2013 results.
At quarter end, the Company's cash balance
totalled $20.9 million, compared to
$29.8 million at December 31, 2012, a decrease of $8.9 million. Cash balances were impacted
in large part by lower gold production and gold sales due to the 19
day mill shutdown and debt repayment during the quarter.
Cash provided by operating activities on a year
to date basis totalled $30.7 million,
an increase of $13.2 million compared
to the same period in 2012. Improved operating cash flow is
the result of higher gold production and sales in the first six
months of 2013 compared to 2012.
Total liabilities decreased by $18.6 million, from $188.7
million as of December 31,
2012, to $170.1 million as of
June 30, 2013, and shareholder's
equity increased from $232.6 million
to $243.2 million year to date.
Long-term debt decreased by $7.3
million mainly as a result of principal payments during the
quarter.
As a result of lower gold prices the carrying
value of the Black Fox Mine and the net realizable value of its
long term stock piled ore were evaluated. The company
recorded a net realizable value adjustment of $3.1 million on the long term stock piled ore but
no adjustment was required for the Black Fox Mine.
The Company also reviewed its long-term capital
requirements and is forecasting total capital spending on mine
development and sustaining capital of $20 to
$25 million for 2014. An exploration budget for 2014 will be
set at a later date.
Exploration
In July 2013, the Company announced
an updated independent NI 43-101 resource estimate for the 147,
Contact, and Grey Fox South zones. The resource estimate
included a constraining pit shell which had not been included in
the previous resource estimates. Highlights include a total
of 507,400 indicated ounces (255,000 relating to the underground
and 252,400 relating to the open pit) and 228,600 inferred ounces
(184,800 relating to the underground and 43,800 relating to the
open pit). The underground and open pit cut-off grades were
set at 2.84 gpt and 0.72 gpt, respectively. The 147, Contact and
Grey Fox south zones all remain open for future expansion, and
drilling continues.
The Black Fox orebody remains open at depth and
along strike and includes gold reserves to a maximum depth of 500
metres. Orebodies in the region, along the Destor Porcupine Fault,
often extend to depths of more than 1,000 metres. The Company is
currently reviewing the results of the underground drilling program
performed in Q4 2012 and Q1 2013 to develop plans for further
drilling in 2014.
Second Quarter Webcast and Conference
Call
A webcast and conference call will be held, Monday August 12 at noon Atlantic Time
(11:00 a.m. Eastern Time). Analysts
and other interested parties wanting to participate in the call
should dial 1-877-407-8133 (international 201-689-8040) at least 10
minutes prior to the start of the call. No pass code is required.
The teleconference will be recorded. If you are unable to join the
teleconference live, you can dial for playback, toll-free at
1-877-660-6853 (international 201-612-7415), please use conference
ID 417707. The event will be archived and available for replay
until midnight on August 26, 2013.
The teleconference will also be accompanied by a presentation made
available on the Company's website at www.brigusgold.com
This release should be read in conjunction with
Brigus' 2013 second quarter
Financial Statements and Management's Discussion and Analysis
report at www.brigusgold.com. Brigus' unaudited 2013 second quarter
Financial Statements and Management's Discussion and Analysis have
been filed with Canadian securities regulators (available at
www.sedar.com) and with the U.S Securities and Exchange Commission
(available at www.sec.gov). Brigus
shareholders may obtain a copy of the financial documents free of
charge upon request to the Company.
About Brigus Gold
Brigus is a growing gold producer
committed to maximizing shareholder value through a strategy of
efficient production, targeted exploration and select acquisitions.
The Company operates the wholly owned Black Fox Mine and Mill in
the Timmins Gold District of Ontario,
Canada. The Black Fox Complex encompasses the Black Fox Mine
and adjoining properties in the Township of Black River‐Matheson,
Ontario, Canada. Brigus also owns the Goldfields Project
located near Uranium City, Saskatchewan,
Canada, which hosts the Box and Athona gold deposits. In the
Dominican Republic, Brigus has signed an agreement to sell its
remaining interests in three mineral exploration projects. In
Mexico, Brigus owns the Ixhuatan Project located in
the state of Chiapas.
Cautionary Note to U.S. Investors Concerning
Estimates of Mineral Resources
This news release uses the term mineral "resources". The Company
advises U.S. investors that while these terms are defined in and
required by Canadian regulations, these terms are not defined terms
under the U.S. Securities and Exchange Commission ("SEC") Industry
Guide 7 and are generally not permitted to be used in reports and
registration statements filed with the SEC. The SEC generally only
permits issuers to report mineralization that does not constitute
SEC Industry Guide 7 compliant "reserves" as in‐place tonnage and
grade without reference to unit measures. U.S. investors are
cautioned not to assume that any part or all of mineral deposits in
these categories will ever be converted into reserves.
Cautionary and Forward‐Looking
Statements
Statements contained in this news release, which are not historical
facts, are forward‐looking statements that involve risk,
uncertainties and other factors that could cause actual results to
differ materially from those expressed or implied by such
forward‐looking statements. All statements regarding the ability of
the Company to achieve its production, total cash costs, steady
state annual production and mining rate estimates; estimated
average gold grades for the open pit and underground operations;
increase in gold production; increase in profitability; exploration
drill results and resource additions, are forward‐looking
statements and estimates that involve various risks and
uncertainties. This forward‐ looking statements include, or may be
based upon, estimates, forecasts, and statements as to management's
expectations with respect to, among other things, the outcome of
legal proceedings, the issue of permits, the size and quality of
the Company's mineral resources, progress in development of mineral
properties, future production and sales volumes, capital and mine
production costs, demand and market outlook for metals, future
metal prices and treatment and refining charges, and the financial
results of the Company.
Important factors that could cause actual
results to differ materially from these forward‐looking statements
include environmental risks and other factors disclosed under the
heading "Risk Factors" in Brigus'
most recent Annual Information Form and Management Discussion and
Analysis filed under the Company's name at www.sedar.com and annual
report on Form 40F filed with the United States Securities and
Exchange Commission at www.sec.gov as well as elsewhere in
Brigus' documents filed from time
to time with the Toronto Stock Exchange, the NYSE Amex Equities,
the United States Securities and
Exchange Commission and other regulatory authorities. All
forward‐looking statements included in this news release are based
on information available to the Company on the date hereof. The
Company assumes no obligation to update any forward‐looking
statements, except as required by applicable securities laws.
SOURCE Brigus Gold Corp.