TIDMCAN
RNS Number : 5706Y
Central African Gold PLC
24 December 2010
Central African Gold Plc / Ticker: CAN / Market: AIM /
Sub-sector: Gold Mining
24 December 2010
Central African Gold Plc ('CAG' or 'the Company')
New Dawn Publishes Financial Results for Year Ended 30 September
2010
Record High Consolidated Gold Sales
Central African Gold Plc, the AIM quoted gold mining and
exploration company, notes the following announcement made by New
Dawn Mining Corp (TSX:ND) ('New Dawn') on 23 December 2010, which
holds a 88.6% equity interest in CAG, regarding New Dawn's
Financial Results for the year ended 30 September 2010.
"Highlights:
-- US$16.4 Million in Revenues from Gold Sales ($16.3 Million
Attributable)
-- US$4.0 Million Adjusted EBITDA from Gold Mining
Operations
-- 14,018 Ounces of Gold Produced (13,900 Ounces
Attributable)
-- 92% Increase to Attributable Measured and Indicated Gold
Resources (Inclusive of Reserves)
-- 3 Gold Mines Operational and in Production
-- Advancing an Additional Gold Mine into Production in 2011
-- Advancing 3 Open Pit Gold Exploration Targets on a Priority
Basis in 2011
-- Targeting 38,000 to 40,000 Ounces of Annualized Consolidated
Gold Production by the Fourth Calendar Quarter of 2011
-- Mid-term Target of 100,000 Ounces of Annualized Consolidated
Gold Production by 2014-2015
TORONTO, Ontario, December 23, 2010 - New Dawn Mining Corp.
(TSX: ND) ("New Dawn" or the "Company") announced that its
financial results and corresponding Management's Discussion and
Analysis for the year ended September 30, 2010 have now been filed
on SEDAR and are also available to view on the Company's website at
www.newdawnmining.com.
The Company prepares its consolidated financial statements in
United States dollars and in accordance with Canadian Generally
Accepted Accounting Principles ("GAAP").
Attributable ounces are the ounces calculated on the basis of
the Company's proportionate ownership of such ounces, after
adjusting for the minority interests' share of gold production from
the Central African Gold Plc ("CAG") properties (see discussion of
"Total and Attributable Ounces" below).
OVERVIEW
Fiscal 2010 was a successful year of growth and development for
the Company, both internally and externally. The Company generated
net income before income taxes of $1,303,676 and completed the
acquisition of an 88.7% controlling interest in CAG, which owns
substantial gold mining properties in Zimbabwe.
Adjusted EBITDA, a non-GAAP measurement, totaled $4,003,453 for
the fiscal year ended September 30, 2010 (see table under "Non-GAAP
Measures" below).
Offsetting these positive results were the significant period
costs related to the acquisition of the 88.7% interest in CAG,
together with the substantial costs associated with stabilizing
CAG's operations in Zimbabwe and implementing the re-engineering of
management structures, process and reporting systems. The Company
expects that these costs will abate and/or normalize during
2011.
The acquisition of CAG, discussed in more detail in the
September 30, 2010 Management's Discussion and Analysis, has
substantially increased the Company's potential, increasing
measured and indicated resources by 92%, (inclusive of reserves)
and bringing under the Company's control five mining properties and
a large portfolio of exploration properties in Zimbabwe. The upside
potential of these assets, to be developed and operated using New
Dawn's established knowledge, experience and operating methods has,
in the view of Company's management, provided a substantial step
towards realizing the Company' s goal of becoming a mid-tier gold
producer.
At September 30, 2010, New Dawn had three gold mines in
operation, consisting of its 100%-owned Turk Mine, and the Old Nic
Mine and the Dalny Mine that New Dawn acquired as part of the CAG
transaction in June 2010, which resumed production during the
quarter ended September 30, 2010.
Looking forward to 2011, New Dawn expects to resume production
at one additional mine acquired in the CAG transaction, the Golden
Quarry Mine in the Gweru gold camp. New Dawn is targeting 38,000 to
40,000 ounces of consolidated annualized gold production from all
of its mines by the fourth calendar quarter of 2011, and has a
mid-term target of 100,000 ounces of consolidated annualized gold
production by 2014-2015.
"In fiscal 2010, New Dawn recorded increasing revenues from gold
produced primarily by the Turk Mine in Zimbabwe. The most notable
event in the past year occurred in June 2010, when New Dawn
acquired an 89% controlling interest in Central African Gold Plc,
which is a transformational event for New Dawn. With the completion
of the CAG transaction, New Dawn increased its gold
reserves/resources by over 90% with the acquisition of 5 past
producing mines and a portfolio of highly prospective exploration
ground in Zimbabwe. New Dawn currently has 3 gold mines in
production, and is planning on restarting operations at one
additional mine owned by CAG which was a past producer, in the
coming year. New Dawn is targeting on doubling its run rate by late
2011 to 38,000 to 40,000 ounces of consolidated annualized gold
production," commented Ian R. Saunders, President and CEO.
"Additionally, in 2011, we have established an aggressive
exploration budget for 3 high priority targets exhibiting
significant open pit potential near the surface in the oxide zones
of former producers. We expect that 2011 will be a very exciting
time for our Company, and we look forward to reporting continuing
progress to our shareholders."
ANNUAL RESULTS
The following table sets forth selected consolidated financial
information for the Company for the fiscal years ended September
30, 2010, 2009 and 2008, prepared in United States dollars and in
accordance with Canadian generally accepted accounting principles.
This selected financial information should be read in conjunction
with the Company's consolidated financial statements, including the
notes thereto.
Fiscal Years Ended September 30,
----------------------------------------------------------------------- --------------
2010 2009 2008
-------------------------------- ---------------- ------------------- --------------
Operations
-------------------------------- ---------------- ------------------- --------------
Revenue $16,380,508 $5,644,977 $7,480,925
-------------------------------- ---------------- ------------------- --------------
Net loss for the year (786,123) (3,737,594) (2,471,066)
-------------------------------- ---------------- ------------------- --------------
Basic and diluted loss per
common share (0.02) (0.13) (0.09)
-------------------------------- ---------------- ------------------- --------------
Balance sheet
-------------------------------- ---------------- ------------------- --------------
Total assets $44,820,031 $19,238,732 $21,383,249
-------------------------------- ---------------- ------------------- --------------
Total liabilities 19,245,119 5,646,869 4,160,911
-------------------------------- ---------------- ------------------- --------------
Cash dividends per share Nil Nil Nil
-------------------------------- ---------------- ------------------- --------------
Other measures
-------------------------------- ---------------- ------------------- --------------
Quantity of gold produced
(oz) 14,018 6,967 8,651
-------------------------------- ---------------- ------------------- --------------
Quantity of gold sold (oz) 14,089 6,029 8,651
-------------------------------- ---------------- ------------------- --------------
Intercompany loan repayments
paid from Zimbabwe $2,936,455 $395,105 $150,000
-------------------------------- ---------------- ------------------- --------------
Cash costs per oz $671 $622 $641
-------------------------------- ---------------- ------------------- --------------
Adjusted EBITDA $4,003,453 $(477,997) $109,915
-------------------------------- ---------------- ------------------- --------------
Attributable
-------------------------------- ---------------- ------------------- --------------
Revenue $16,270,999 $5,644,977 $7,480,925
-------------------------------- ---------------- ------------------- --------------
Quantity of gold produced
(oz) 13,900 6,967 8,651
-------------------------------- ---------------- ------------------- --------------
Quantity of gold sold (oz) 14,004 6,029 8,651
-------------------------------- ---------------- ------------------- --------------
(1) Cash costs per ounce, adjusted EBITDA and attributable
measures are non-GAAP measures, as more fully described in the
discussion below entitled "Non-GAAP measures".
Non-GAAP Measures
The Company has included within this press release and its
MD&A, EBITDA, adjusted EBITDA, cash costs per ounce and
attributable measures, which are non-GAAP performance measures.
These non-GAAP performance measures do not have any standardized
meaning prescribed by GAAP and, therefore, are unlikely to be
comparable to similar measures presented by other companies.
The Company believes that, in addition to conventional measures
prepared in accordance with GAAP, certain investors may find this
information useful in their evaluation of the Company's
performance. Accordingly, these non-GAAP measures are intended to
provide additional information and should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with GAAP.
Set out below are definitions for these performance measures and
reconciliations of the non-GAAP measures to reported GAAP
measures.
Total and Attributable Ounces
Total ounces represent the total ounces under the control of the
Company and its subsidiaries and includes 100% of such ounces.
Total ounces are presented consistent with the method of
consolidation of the accounting information provided in the
Company's consolidated financial statements, in which the Company
and its subsidiaries, both wholly-owned and partly-owned, are
considered an operating unit with adjustment for the minority
interest based on income after provision for income taxes.
Attributable ounces are the ounces calculated on the basis of
the Company's proportionate ownership of such ounces, after
adjusting for the minority interests' share of gold production from
the CAG properties. Accordingly, any financial information based on
attributable ounces is a non-GAAP measure.
The information shown below is for the fiscal year ended
September 30, 2010. For the fiscal year ended September 30, 2009,
as all properties were 100% owned by the Company, total and
attributable ounces were the same.
Casmyn Falgold Olympus Total Attributable
--------------- ------------ --------- --------- ------------ -------------
Proportionate
holding 100% 75% 89% - -
--------------- ------------ --------- --------- ------------ -------------
Ounces of gold
sold 13,667 277 145 14,089 14,004
--------------- ------------ --------- --------- ------------ -------------
Ounces of gold
produced 13,447 391 180 14,018 13,900
--------------- ------------ --------- --------- ------------ -------------
Revenue $15,841,538 $358,734 $180,236 $16,380,508 $16,270,999
--------------- ------------ --------- --------- ------------ -------------
EBITDA and Adjusted EBITDA
Earnings before interest expense, income taxes, depreciation and
amortization is a metric that is used by some readers to measure
cash earnings without the distortion arising from both varying
capital structures and different tax legislations that apply in
different jurisdictions. It is different from cash flow from
operations appearing in the consolidated statement of cash flows in
that it does not take into account interest expense and tax
payments or changes in non-cash working capital. It is also
different from free cash flow in that it excludes the cash required
to replace capital assets (capex).
The Company takes the view that stock-based compensation,
impairment expense and impairment recovery, all of which are
non-cash items, should also be excluded in arriving at this
measure. Included in the table below is EBITDA as typically
calculated, as well as Adjusted EBITDA that excludes certain
additional items.
The reconciliation to EBITDA and Adjusted EBITDA starts at net
loss for the period shown on the consolidated statement of
operations.
Years ended September 30,
------------------------------------------------------------------------------
2010 2009 2008
----------------------------------- ----------- ------------- -------------
Net loss for the period $(786,123) $(3,737,594) $(2,471,066)
----------------------------------- ----------- ------------- -------------
Add (deduct):
----------------------------------- ----------- ------------- -------------
Interest expense 70,409 10,000 -
----------------------------------- ----------- ------------- -------------
Income taxes 2,264,465 100,192 45,557
----------------------------------- ----------- ------------- -------------
Amortization and accretion 959,053 721,763 1,176,283
----------------------------------- ----------- ------------- -------------
Allocation of loss to minority
interest (174,666) -
----------------------------------- ----------- ------------- -------------
EBITDA 2,333,138 (2,905,639) (1,249,226)
----------------------------------- ----------- ------------- -------------
Add:
----------------------------------- ----------- ------------- -------------
Overhead of non-operational
properties 713,047 - -
----------------------------------- ----------- ------------- -------------
Impairment expense 435,000 2,320,523 1,211,500
----------------------------------- ----------- ------------- -------------
Stock-based compensation 522,268 107,119 147,641
----------------------------------- ----------- ------------- -------------
Adjusted EBITDA $4,003,453 $(477,997) $109,915
----------------------------------- ----------- ------------- -------------
Cash costs per ounce
The Company has adopted the definitions that were published by
the Gold Institute for operating costs per ounce in order to
enhance comparability with other mining companies. Cash costs are
derived from the statement of operations and include operating
costs such as mining, milling, refining and transportation,
by-product credits, royalties and production taxes but exclude
exploration costs, depreciation and depletion, reclamation and mine
closure costs, and gains and losses from foreign exchange. Costs
are based upon production activity.
Years ended
September 30,
--------------------------------------------------------------------------------------------------------------------
2010 2009 2008
--------------------------------------------------- --------------------- ------------------ --------------------
Quantity of gold produced (oz) 14,018 6,967 8,651
--------------------------------------------------- --------------------- ------------------ --------------------
Cash cost per ounce $671 $622 $632
--------------------------------------------------- --------------------- ------------------ --------------------
(For additional information, see cash costs per ounce discussed
in the section titled Non-GAAP Measures in the September 30, 2010
Management's Discussion and Analysis).
About New Dawn ...
New Dawn is a Zimbabwe-focused junior gold company currently
expanding gold production at its wholly-owned Turk Mine and, with
its June 2010 investment in which it acquired an 89% controlling
interest in Central African Gold Plc ("CAG"), New Dawn is targeting
consolidated annualized gold production of 50,000 to 60,000 ounces
within the next 18 to 24 months, increasing to 100,000 ounces of
consolidated annualized gold production within the next 4 to 5
years.
Having recently filed a new NI 43-101-compliant mineral reserve
and resource estimate for the CAG properties, New Dawn's total
attributable mineral reserves, including its Turk Mine, increased
32% to 220,000 ounces of gold grading 3.81 g/t from 1,785,000 tons
of mineralized material. The attributable mineral reserves are
comprised of attributable proven mineral reserves of 109,400 ounces
of gold grading 3.69 g/t from 874,700 tons of mineralized material
and attributable probable mineral reserves of 110,600 ounces of
gold grading 3.78 g/t from 910,300 tons of mineralized
material.
Additionally, New Dawn's total attributable measured and
indicated mineral resources (inclusive of attributable mineral
reserves) increased by 92% to 1,558,400 ounces of gold grading 2.37
g/t from 20,436,000 tons of mineralized material and New Dawn's
total attributable inferred mineral resources increased by 54% to
552,600 ounces of gold grading 4.95 g/t from 3,477,000 tons of
mineralized material. (Reference: New Dawn press release dated
October 19, 2010)
Presently, New Dawn operates 3 significant gold camps in
Zimbabwe, where it owns 6 mines, 3 of which are currently producing
gold and expanding production. Ultimately, New Dawn's objective is
to become a leading gold mining company in Zimbabwe, active in both
gold production and gold exploration, by employing modern mining
techniques and deploying capital in a country that is geologically
rich, highly prospective, and vastly under explored.
Additional information on New Dawn's gold reserve and resource
estimates is included at the Company's website at
www.newdawnmining.com or in the Company's filings on SEDAR at
www.sedar.com.
The TSX has not reviewed and does not accept responsibility for
the adequacy or the accuracy of this release.
The contents of this news release were supervised and reviewed
by Ian R. Saunders, B.Sc., who is President, Chief Executive
Officer, and a Director of New Dawn Mining Corp., and who is a
Qualified Person within the meaning of NI 43-101.
For Further Information:
Investor Relations Contact: Richard Buzbuzian +1
416.585.7890
President and Chief Executive Officer: Ian R. Saunders +1
416.585.7890
Visit us on the internet: http://www.newdawnmining.com or
Email us at: info@newdawnmining.com
Special Note Regarding Forward-Looking Statements: Certain
statements included or incorporated by reference in this news
release, including information as to the future financial or
operating performance of the Company, its subsidiaries and its
projects, constitute forward-looking statements. The words
"believe," "expect," "anticipate," "contemplate," "target," "plan,"
"intends," "continue," "budget," "estimate," "may," "schedule" and
similar expressions identify forward-looking statements.
Forward-looking statements include, among other things, statements
regarding targets, estimates and assumptions in respect of gold
production and prices, operating costs, results and capital
expenditures mineral reserves and mineral resources and anticipated
grades and recovery rates. Forward-looking statements are
necessarily based upon a number of estimates and assumptions that,
while considered reasonable by the Company, are inherently subject
to significant business, economic, competitive, political and
social uncertainties and contingencies. Many factors could cause
the Company's actual results to differ materially from those
expressed or implied in any forward-looking statements made by, or
on behalf of, the Company. Such factors include, among others,
risks relating to reserve and resource estimates, gold prices,
exploration, development and operating risks, political and foreign
risk uninsurable risks, competition, limited mining operations,
production risks, environmental regulation and liability,
government regulation, currency fluctuations, recent losses and
write-downs and dependence on key employees. See "Risk Factors" in
the Company's Annual Information Form - 2010. Due to risks and
uncertainties, including the risks and uncertainties identified
above, actual events may differ materially from current
expectations. Investors are cautioned that forward-looking
statements are not guarantees of future performance and,
accordingly, investors are cautioned not to put undue reliance on
forward-looking statements due to the inherent uncertainty therein.
Forward-looking statements are made as of the date of this press
release and the Company disclaims any intent or obligation to
update publicly such forward-looking statements, whether as a
result of new information, future events or results or
otherwise."
**ENDS**
For further information please visit
www.centralafricangold.comor contact:
Roy Pitchford Central African Gold Plc Tel: +44(0)77 9390
/ 9985
Ian Saunders Tel: +(263) 9 76826/7/8
Stuart Faulkner Strand Hanson Limited Tel: +44(0)20 7409
/ James Spinney 3494
Hugo de Salis St Brides Media and Finance Tel: +44(0)20 7236
/ Felicity Ltd 1177
Edwards
Notes to Editors
CAG
Central African Gold Plc is a gold mining company with a
portfolio of production, development and exploration assets in
Zimbabwe, where the Company operates through two subsidiaries,
Falcon Gold Zimbabwe Limited (84.7 per cent. owned) and Olympus
Gold Mines Limited (100 per cent. owned). Through these
subsidiaries, CAG has four main gold mines, the Dalny, Old Nic,
Golden Quarry and Camperdown mines, which arelocated in the highly
prospective Kadoma, Shurugwi and Bulawayo gold regions in
Zimbabwe.
NDM
The Company's 88.68% shareholder is Toronto Stock Exchange
listed New Dawn Mining Corp. ('NDM'), a gold mining company with a
broad portfolio of production and exploration assets also in
Zimbabwe. NDM owns and operates the Turk Mine in the upper
southwest area of Zimbabwe, which it believes has the potential to
produce an estimated 35,000 to 50,000 ounces of gold per annum. It
is NDM's objective to orchestrate the development of CAG's mining
operations and exploration portfolio, as well as its own, to become
a mid-tier gold producer focussed in Zimbabwe with a consolidated
annualised gold production to between 50,000 and 60 000 ounces
within the next 18 to 24 months, increasing to 100,000 ounces
within the next 4 to 5 years.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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