Shares Outstanding:
325,278,261
Trading
Symbols:
TSX: GGD
OTCQX: GLGDF
HALIFAX,
NS, Feb. 14, 2023 /CNW/ - GoGold Resources
Inc. (TSX: GGD) (OTCQX: GLGDF) ("GoGold", "the
Company") is pleased to announce the financial results for the
quarter ending December 31, 2022,
with Parral generating $8.5 million
(all amounts are in U.S. dollars) from the sale of 411,756 silver
equivalent ounces.
"Our December financial statements highlight one of the key
strengths of our Company – which is our strong balance sheet which
continues to allow us to advance our Los Ricos project.
Subsequent to our quarter end, we closed a bought deal financing
which further strengthened our balance sheet, with over
$100 million USD in cash as of
today," said Brad Langille,
President and CEO. "We continue to be excited for 2023 at Los
Ricos including some of these key milestones for the year:
- Completion of PEA at Los Ricos North
- Continued drilling program at Los Ricos South
- Updated Mineral Resource Estimate and Preliminary Economic
Assessment ("PEA") at Los Ricos South including the impact of the
Eagle concession
- Completion of Pre-Feasibility Study ("PFS") at Los Ricos
South
- Underground exploration and development at Los Ricos South
focussing initially on the Eagle
- Construction decision and permitting at Los Ricos South
With our above objectives and our strong balance sheet, we
expect the year ahead will be strong in value creation for GoGold
as we advance on the development road towards mining."
Financial Highlights for the quarter ending December 31, 2022:
- Cash of $62.6 million USD
- Revenue of $8.5 million on the
sale of 411,756 silver equivalent ounces at a realized price per
ounce of $21.18 per oz
- Production of 441,217 silver equivalent ounces, consisting of
159,838 silver ounces, 2,399 gold ounces, and 222 copper
tonnes
- Adjusted cash cost per silver equivalent ounce of $12.89
- Adjusted all in sustaining cost per silver equivalent ounce of
$17.76
Following are tables showing summarized financial information
and key performance indicators:
Summarized
Consolidated Financial Information
|
Three months ended
Dec 31
|
(in thousands USD,
except per share amounts)
|
2022
|
2021
|
Revenue
|
$ 8,478
|
$ 8,854
|
Cost of sales,
including depreciation
|
8,765
|
6,453
|
Operating income
(loss)
|
(2,242)
|
574
|
Net loss
|
(2,891)
|
(495)
|
Basic net income (loss)
per share
|
(0.010)
|
(0.002)
|
Cash flow used in
operations
|
(4,246)
|
(4,584)
|
Key Performance
Indicators1
|
Three months ended
Dec 31
|
(in thousands USD,
except per ounce amounts)
|
2022
|
2021
|
Total tonnes
stacked
|
352,363
|
573,357
|
Silver equivalent
ounces sold
|
411,756
|
401,214
|
Adjusted AISC per
silver equivalent ounce2
|
$ 17.76
|
$
18.58
|
Adjusted Cash cost per
silver equivalent ounce2
|
$ 12.89
|
$
13.51
|
Realized silver
price
|
$ 21.18
|
$
22.07
|
Metres
drilled
|
21,642
|
19,864
|
1 Key
performance indicators are unaudited non-GAAP measures, see
reconciliation in MD&A.
|
2 Gold and
copper are converted using average market prices
|
This news release should be read in conjunction with the interim
condensed consolidated financial statements for the quarter ended
December 31, 2022, notes to the
financial statements, and management's discussion and analysis for
the quarter ended December 31, 2022,
which have been filed on SEDAR and are available on the Company's
website.
Technical information contained in this news release with
respect to GoGold has been reviewed and approved by Mr.
Bob Harris, P.Eng., who is a
qualified person for the purposes of NI 43-101.
About GoGold Resources
GoGold Resources (TSX: GGD) is a Canadian-based silver and gold
producer focused on operating, developing, exploring and acquiring
high quality projects in Mexico. The Company operates the
Parral Tailings mine in the state of
Chihuahua and has the Los Ricos South and Los Ricos North
exploration projects in the state of Jalisco. Headquartered in Halifax, NS, GoGold is building a portfolio of
low cost, high margin projects. For more information visit
gogoldresources.com.
CAUTIONARY STATEMENT:
The securities described herein
have not been, and will not be, registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act"), or
any state securities laws, and may not be offered or sold within
the United States or to, or for
the benefit of, U.S. persons (as defined in Regulation S under the
U.S. Securities Act) except in compliance with the registration
requirements of the U.S. Securities Act and applicable state
securities laws or pursuant to exemptions therefrom. This release
does not constitute an offer to sell or a solicitation of an offer
to buy of any of GoGold's securities in the United States.
This news release may contain "forward-looking information" as
defined in applicable Canadian securities legislation. All
statements other than statements of historical fact, included in
this release, including, without limitation, statements regarding
the Parral tailings project, the Los Ricos project, future
operating margins, future production and processing, and future
plans and objectives of GoGold, constitute forward looking
information that involve various risks and uncertainties.
Forward-looking information is based on a number of factors and
assumptions which have been used to develop such information but
which may prove to be incorrect, including, but not limited to,
assumptions in connection with the continuance of GoGold and its
subsidiaries as a going concern, general economic and market
conditions, mineral prices, the accuracy of mineral resource
estimates, and the performance of the Parral project There can be
no assurance that such information will prove to be accurate and
actual results and future events could differ materially from those
anticipated in such forward-looking information.
Important factors that could cause actual results to differ
materially from GoGold's expectations include exploration and
development risks associated with the GoGold's projects, the
failure to establish estimated mineral resources or mineral
reserves, volatility of commodity prices, variations of recovery
rates, the effects of the global COVID-19 pandemic, and global
economic conditions. For additional information with respect to
risk factors applicable to GoGold, reference should be made to
GoGold's continuous disclosure materials filed from time to time
with securities regulators, including, but not limited to, GoGold's
Annual Information Form. The forward-looking information contained
in this release is made as of the date of this release.
Cautionary non-GAAP Measures and Additional GAAP
Measures
Note that for purposes of this section, GAAP
refers to IFRS. The Company believes that investors use certain
non-GAAP and additional GAAP measures as indicators to assess
mining companies. They are intended to provide additional
information and should not be considered in isolation or as a
substitute for measures of performance prepared with GAAP. Non-GAAP
and additional GAAP measures do not have a standardized meaning
prescribed under IFRS and therefore may not be comparable to
similar measures presented by other companies.
Additional GAAP measures that are presented on the face of the
Company's consolidated statements of comprehensive income include
"Operating income (loss)". These measures are intended to provide
an indication of the Company's mine and operating performance. Per
ounce measures are calculated by dividing the relevant mining and
processing costs and total costs by the tonnes of ore processed in
the period. "Adjusted cash costs per ounce" and "Adjusted all-in
sustaining costs per ounce" are used in this analysis and are
non-GAAP terms typically used by mining companies to assess the
level of gross margin available to the Company by subtracting these
costs from the unit price realized during the period. These
non-GAAP terms are also used to assess the ability of a mining
company to generate cash flow from operations. There may be some
variation in the method of computation of these metrics as
determined by the Company compared with other mining companies. In
this context, "Adjusted cash costs per ounce" reflects the cash
operating costs allocated from in-process and dore inventory
associated with ounces of silver and gold sold in the period.
"Adjusted cash costs per ounce" may vary from one period to another
due to operating efficiencies, grade of material processed and
silver/gold recovery rates in the period. "Adjusted all-in
sustaining costs per ounce" include total cash costs, exploration,
corporate and administrative, share based compensation and
sustaining capital costs. For a reconciliation of non-GAAP and GAAP
measures, please refer to the Management Discussion and Analysis
dated February 13, 2023 for the three
months ended December 31, 2022, as
presented on SEDAR.
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SOURCE GoGold Resources Inc.