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Elevation Gold Reports Financial Results for Year Ended December 31, 2023, including $66.4M in Total Revenue

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Elevation Gold Reports Financial Results for Year Ended December 31, 2023, including $66.4M in Total Revenue

 

 

 

 

 

Elevation Gold Mining Corporation (TSX-V: ELVT) (OTCQB: EVGDF) is pleased to announce financial results for three months and year ended December 31, 2023.  All figures are expressed in US dollars unless otherwise noted.

 

Summary for the Three Months and Year Ended December 31, 2023

  • Elevation produced 7,989 ounces of gold and 60,706 ounces of silver for the three months ended December 31, 2023, and 31,047 ounces of gold and 202,060 ounces of silver for the year ended December 31, 2023.
  • The Company generated total revenue of $66.4 million during the year, an increase of 7% compared to 2022, on 31,063 ounces of gold and 281,467 ounces of silver sold. The average realized price of gold per ounce sold for the three months ended December 31, 2023 was $1,916.
  • Income from mine operations before depreciation and depletion of $12.5 million for the 2023 year.
  • For the three months ended December 31, 2023, total cash costs per ounce of gold sold (1) were $1,424 and all-in sustaining costs (“AISC”) per ounce of gold sold (1) were $2,126.

 

Tim Swendseid, Elevation Gold CEO, stated: During the fourth quarter our production and financial results were impacted by challenges in and around the crushing plant.  Our income from mine operations before depreciation and depletion was $3.8 million for the quarter and $12.5 million for the year, both reflecting a steady improvement compared to results for the same periods last year. Cash costs per ounce sold was $1,424, which is similar to Q4 2022, and $1,524 for the year, reflecting an $186/oz improvement over the 2022 year. We completed and put into operation the 3A-Ph2 leach pad and completed and reported the results of additional reverse circulation holes in Reynolds Pit and the Mordor area. (See News Release dated February 27, 2024.)  We are currently benefiting from strong gold prices but continue to preserve our liquidity by temporarily suspending royalty payments and silver stream deliveries as we announced on April 4, 2024.  As we also announced on April 4, 2024, first quarter 2024 production was disappointing, but based on current mining operations, we expect an improvement in production during the second quarter of this year.

 

Consolidated Financial Results Summary

 

The following table provides a summary of the components of the Company’s results for the three months and years ended December 31, 2023 and 2022.  For further details, refer to the Company’s Consolidated Financial Statements and Management Discussion and Analysis for the year ended December 31, 2023.

 

 

 (in thousands of dollars) Q4 2023 Q4 2022 YTD 2023 YTD 2022
Revenue $ 16,337 $ 17,108 $ 66,356 $ 62,008
Production costs (11,637) (13,467) (50,429) (56,396)
Royalties (881) (952) (3,419) (3,196)
Mine operating income before depreciation

and depletion

3,819 2,689 12,508 2,416
Depreciation and depletion (3,234) (4,463) (13,568) (10,310)
Income (loss) from mine operations 585 (1,774) (1,060) (7,894)
Corporate administrative expenses (776) (712) (3,064) (3,429)
Finance costs (2,068) (1,585) (8,449) (6,646)
Gain on modification of debt 549 549
Gain (loss) on revaluation of derivative liabilities (637) (5,167) 793 8,097
Impairment of plant and equipment and
mineral properties (1)
(11,163) (11,163) (33,850)
Other (94) (52) (150) 114
Loss for the period $ (13,604) $ (9,290) $ (22,544) $ (43,608)
 

 

(1) During the year ended December 31, 2023, the Company recognized a non-cash impairment of mineral properties of $11.2 million (2022: $33.9 million), of which $8.8 million (2022: $nil) was recorded in plant and equipment, $1.7 million (2022: $21.5 million) was recorded in depletable mineral properties and $0.7 million (2022: $12.3 million) in non-depletable mineral properties. Management completed an assessment of impairment indicators for the Moss Mine cash generating unit (“CGU”) due to continued losses from mining operations as well as the Company’s market capitalization remaining below the carrying value of net assets. Accordingly, the Company estimated the recoverable amounts of the CGU and compared them to the carrying value of the CGU.  The recoverable amount of the CGU was based on a fair value less cost of disposal method using discounted cash flow models. Upon completion of the Company’s impairment assessment, it was determined that the Moss Mine CGU was impaired by $11.2 million, which resulted in a charge of the same amount to the Company’s statement of income and loss and is included in the YTD 2023 period.

 

The projected cash flows used in impairment testing are significantly affected by changes in assumptions.  Key assumptions included by management in the discounted cash-flow model included a gold price of $2,108 per ounce, gold and silver recoveries of 77% and 43%, respectively, as indicated in life of mine plans, and a real after-tax discount rate of 6%. Management’s estimates of the recoveries are prepared by or under the supervision of and verified by Qualified Persons as defined in National Instrument 43-101 of the Canadian Securities Administrators (management’s experts). The Company performed a sensitivity analysis on these key assumptions. Based on the impairment testing performed at December 31, 2022, the sensitivity to changes in these key assumptions is as follows:

  • a 10% decrease in the short and long term gold prices would result in an additional impairment of $19.6 million,
  • a 10% decrease in gold recoveries would result in an additional impairment of $19.0 million, and
  • a 1% increase in the real after-tax discount rate to 7% would result in an additional impairment of $0.7 million.

 

Consolidated Operational Results Summary

 

The following table provides a summary of the Company’s operational statistics for the three months and years ended December 31, 2023 and 2022.  For further details, refer to the Company’s MD&A for the same periods.

 

 

Three Months Ended
December 31,
Year Ended December 31,
2023 2022 2023 2022
Ore tonnes mined t 620,039 723,418 2,747,220 2,963,038
Ore tonnes stacked t 604,147 738,478 2,798,293 2,976,281
Contained gold ounces stacked oz 10,421 12,540 42,206 43,401
Gold grade g/t 0.54 0.53 0.47 0.45
Gold ounces produced oz 7,989 9,183 31,047 31,094
Gold ounces sold oz 7,754 9,060 31,063 31,666
Average realized gold price (2) ($/oz) $            1,916 $           1,732 $           1,927 $          1,786
Cash costs per ounce of gold sold (2) ($/oz) $            1,424 $           1,435 $           1,524 $          1,710
AISC per ounce of gold sold (2) ($/oz) $            2,126 $           1,634 $           2,130 $          2,165
(2)     Refer to the Company’s Management Discussion and Analysis for the year ended December 31, 2022 and 2021 for a reconciliation to non-IFRS performance measures.

 

Qualified Persons

 

Unless otherwise indicated, the technical disclosure contained within this press release that relates to the Company’s operating mine has been reviewed and approved by Tim J. Swendseid, P.E., MBA, CFA, Chief Executive Officer of the Company and a Qualified Person for the purpose of NI 43-101.

 

Additional Information

 

Consolidated financial statements for the years ended December 31, 2023 and 2022 and related MD&A for the same periods can be found at www.sedarplus.ca and the Company’s website at www.elevationgold.com.

 

Non-IFRS Performance Measures

 

The following tables represent the calculation of certain Non-IFRS Financial Measures as referenced in this news release.

 

Reconciliation of Cash Costs and AISC

 

     (in thousands of dollars, except per ounce figures) Q4 2023 Q4 2022(3) YTD 2023 YTD 2022(3)
Gold ounces sold 7,754 9,060 31,063 31,666
Cost of sales $         15,752 $        18,882 $       67,416 $      69,902
  Less: Depreciation and depletion (3,233) (4,462) (13,568) (10,310)
  Add: Refining and transportation 94 71 321 293
  Less: Silver and other bi-product revenue (1,571) (1,491) (6,824) (5,739)
Total Cash Costs 11,042 13,000 47,345 54,146
  Sustaining capital expenditures 3,293 888 9,162 10,456
  Capitalized stripping 971 5,115
  Accretion 400 202 1,468 511
  Corporate administration 776 712 3,064 3,429
Total AISC $         16,482 $        14,802 $       66,154 $      68,542
Cash Costs per ounce of gold sold $           1,424 $          1,435 $         1,524 $        1,710
AISC per ounce of gold sold $           2,126 $          1,634 $         2,130 $        2,165
(3)  The Company has calculated Total Cash Costs, Total AISC, and relevant per ounce of gold unit rates consistently across each of the periods presented. Prior period comparable figures for 2022 included adjustments for heap leach and dore net realizable value write-downs, however, for the purposes of conforming to the current period calculation, these adjustments have been excluded in both periods. These impairment charges and reversals can create fluctuations in reported amounts in the periods in which they are recorded.

 

Reconciliation of Average Realized Price of Gold per Ounce Sold

 

     (in thousands of dollars, except per ounce figures) Q4 2023 Q4 2022 YTD 2023 YTD 2022
Gold revenue $         14,860 $         15,688 $           59,853 $        56,562
Gold ounces sold 7,754 9,060 31,063 31,666
Average realized price per ounce sold $           1,916 $           1,732 $             1,927 $          1,786

 

About Elevation Gold Mining Corporation

 

Elevation Gold is a publicly listed gold and silver producer, engaged in the acquisition, exploration, development and operation of mineral properties located in the United States.  Elevation Gold’s common shares are listed on the TSX Venture Exchange in Canada and on the OTCQB in the United States.  The Company’s principal operation is its 100% owned Moss Mine in the Mohave County of Arizona.  Elevation also holds the title to the Hercules exploration property, located in Lyon County, Nevada.

 

Posted April 18, 2024

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