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Elevation Gold Reports Q3 2022 Financial Results, including $17M in Total Revenue on 9,096 Ounces of Gold Sold for the Most Recent Quarter

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Elevation Gold Reports Q3 2022 Financial Results, including $17M in Total Revenue on 9,096 Ounces of Gold Sold for the Most Recent Quarter

 

 

 

 

 

Elevation Gold Mining Corporation (TSXV: ELVT) (OTCQX: EVGDF) is pleased to announce financial results for the three and nine months ended September 30, 2022.  All figures are expressed in US dollars unless otherwise noted.

 

Summary for the Three Months Ended September 30, 2022

  • Elevation produced 8,835 ounces of gold and 49,007 ounces of silver during Q3 2022 from 750,908 ore tonnes processed with average grades of 0.51 g/t gold and 4.08 g/t silver.
  • The Company generated total revenue of $17.0 million on 9,096 ounces of gold and 75,862 ounces of silver sold. The average realized price of gold per ounce sold (1) was $1,713. Gold ounces sold represented an increase of 46% from Q3 2021 and 30% from Q2 2022.
  • Q3 2022 income from mine operations before depreciation and depletion of $2.1 million and net income of $1.2 million, or $0.01 per share.
  • Total Cash Costs per ounce of gold sold (1) of $1,770 and all-in sustaining costs per ounce of gold sold (1) of $2,033. The Company expects to improve on its operational results in Q4 2022 with the addition of higher-grade ore sourced from East Pit, and the reduction of capital expenditure requirements as the majority of the Company’s major capital projects were completed in Q2 2022 and early Q3 2022.
  • Completed a multi-phase infill and resource expansion drilling program at the Moss Mine, which included 17,197 meters of reverse circulation (“RC”) drilling in the first half of 2022. In July 2022, the Company began its maiden exploration program at Florence Hill. New RC drilling program expected to commence at Moss Mine in November 2022 to further test mineralization near Center and West Pit.
(1) Refer to the Company’s Management Discussion and Analysis for the three and nine months ended September 30, 2022 and 2021 for a reconciliation to non-IFRS performance measures.

 

Tim Swendseid, Elevation Gold President, stated “Our Q3 2022 financial results reflect a significant improvement in operations at the Moss Mine, with total revenue increasing 40% over Q3 2021 and 18% over Q2 2022 and gold ounces sold increasing 46% from Q3 2021 and 30% from Q2 2022.  Without considering inventory swings and adjustments, cash costs per ounce approximated $1,479.  We remain on track to meet sales guidance for 2022 of total ounces sold between 32,000 and 34,000 for the year.  My thanks to the outstanding performance of everyone at the Moss Mine, and we continue to be excited about our current and ongoing exploration programs both in the Florence Hill area and our near-mine programs.”

 

The following chart provides additional information on the Company’s increasing grade and recoverable ounces placed on the pad during 2022 on a quarter-by-quarter basis.

 

Outlook

 

During Q3 2022, the Company completed several key capital projects including the completion of the construction of the new heap leach pad 2C and constructed two new production water wells.  The Company also completed five new monitoring wells in Q2 2022.  The monitoring wells were a requirement of our Aquifer Protection Permit, while the production water wells secure water for operations at the Moss Mine.

 

The Company continues to focus on overall efficiencies and enhancements including sourcing higher-grade ore material from East Pit for the remainder of 2022 and obtaining consistent higher levels of ore processing rates.  For Q3 2022, the mine averaged 8,162 stacked ore tonnes per day, which is in-line with the YTD 2022 average of 8,197 stacked ore tonnes per day, a 9% betterment than YTD 2021.  By improving quality control from mine drilling and blasting and oversight on scheduled crusher maintenance, the Company looks ahead to continually improve crusher throughput.  With the additional high-grade ore sourced from East Pit in the second half of the year, the Company is well positioned to deliver on annual guidance of between 32,000 to 34,000 ounces of gold sold for the full year 2022.

 

The Company has also recently begun an exploration program in the Florence Hill and the surrounding areas and a newly announced reverse-circulation drilling program at the Moss Mine in Q4 2022.

 

Consolidated Financial Results Summary

 

The following table provides a summary of the components of the Company’s net income (loss) for the three and nine months ended September 30, 2022 and 2021.  For further details, refer to the Company’s condensed interim consolidated financial statements and Management Discussion and Analysis (“MD&A”) for the same periods.

 

Three Months Ended September 30, Nine Months Ended September 30,
 (in thousands of dollars) 2022 2021 2022 2021
Revenue $ 16,979 $ 12,095 $ 44,900 $ 45,086
Production costs1 (13,948) (8,500) (42,929) (29,413)
Royalties (899) (685) (2,244) (2,437)
Mine operating (loss) income before depreciation and depletion 2,132 2,910 (273) 13,236
Depreciation and depletion1 (1,837) (1,713) (5,847) (6,177)
(Loss) earnings from mine operations 295 1,197 (6,120) 7,059
Corporate administrative expenses (965) (1,037) (2,717) (3,848)
Finance costs (1,643) (792) (5,061) (3,976)
Gain (loss) on revaluation of derivative liabilities 3,240 4,031 13,264 3,198
Impairment of mineral properties (33,850)
Other 266 136 166 268
Income (loss) for the period $ 1,193 $ 3,535 $ (34,318) $ 2,701
(1)  During the six months ended June 30, 2022, the Company incurred an inventory net realizable value impairment charge of approximately $5.8 million.  During Q3 2022, due to lower per ounce costs and higher production in the period, the Company reversed a total of $2.7 million from production costs to inventory, resulting in a net impairment of $3.1 million for the YTD 2022.  All impairments and reversal of impairments are included in changes in inventories and part of production costs.  For a complete analysis and breakdown of production costs and significant components, refer to the Company’s condensed interim consolidated financial statements for the three and nine months ended September 30, 2022 and the related MD&A for the same period.

 

 

Consolidated Operational Results Summary

 

The following table provides a summary of the Company’s operational statistics for the three and nine months ended September 30, 2022 and 2021.  For further details, refer to the Company’s MD&A for the same periods.

 

Three Months Ended
September 30,
Nine Months Ended
September 30,
2022 2021 2022 2021
Ore tonnes mined t 778,177 730,447 2,239,620 2,119,071
Ore tonnes stacked t 750,908 714,642 2,237,803 2,047,688
Contained gold ounces stacked oz 12,354 9,275 30,861 29,679
Gold grade g/t 0.51 0.40 0.43 0.45
Gold ounces produced oz 8,835 6,526 21,912 22,368
Gold ounces sold oz 9,096 6,214 22,606 22,380
Average realized gold price (1) ($/oz) $     1,713 $     1,785 $     1,808 $     1,794
Cash costs per ounce of gold sold (1) ($/oz) $     1,770 $     1,316 $     1,682 $     1,202
AISC per ounce of gold sold(1) ($/oz) $     2,003 $     1,810 $     2,239 $     2,078
(1) Refer to the Company’s Management Discussion and Analysis for the three and nine months ended September 30, 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, Chief Operating Officer of the Company and a Qualified Person for the purpose of NI 43-101.

 

Additional Information

 

Full condensed interim consolidated financial statements for the three months and nine months ended September 30, 2022 and 2021 and related MD&A for the same period can be found at www.sedar.com 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

 

Three Months Ended

September 30,

Nine Months Ended

September 30,

(in thousands of dollars, except per ounce figures) 2022 2021 2022 2021
Gold ounces sold 9,096 6,214 22,606 22,380
Cost of sales $         16,684 $        10,898 $       51,020 $        38,027
  Less: Heap leach and doré adjustment(1) 2,653 (3,116)
  Less: Depreciation and depletion (1,837) (1,713) (5,847) (6,177)
  Add: Refining and transportation 94 60 223 212
  Less: Silver and other bi-product revenue (1,492) (1,065) (4,249) (5,157)
Total Cash Costs 16,102 8,180 38,031 26,905
  Sustaining capital expenditures 1,108 1,968 9,568 15,559
  Accretion 46 62 309 195
  Corporate administration 965 1,037 2,717 3,848
Total AISC $         18,221 $        11,247 $       50,625 $         46,507
Cash Costs per ounce of gold sold $           1,770 $          1,316 $         1,682 $           1,202
AISC per ounce of gold sold $           2,003 $          1,810 $         2,239 $           2,078
(1)  As discussed in the section Financial Results, during the six months ended June 30, 2022, the Company incurred an inventory net realizable value impairment charge of approximately $5.8 million.  During Q3 2022, due to lower per ounce costs and higher production in the period, the Company reversed a total of $2.7 million from production costs to inventory, resulting in a net impairment of $3.1 million for the YTD 2022.  All impairments and reversal of impairments are included in changes in inventories and part of production costs.

 

The Company has calculated Total Cash Costs, Total AISC, and relevant per ounce of gold unit rates consistently across each of the periods presented, which includes period adjustments for heap leach and doré impairment charges (and reversals) incurred in Q3 2022 and YTD 2022.  These impairment charges and reversals (described immediately above) can create fluctuations where such adjustments occur.  Management views the current quarter costs considerably lower, on a per ounce sold basis, than costs seen in the first half of 2022, when not factoring in the accounting adjustments related to impairment.  For Q3 2022 and YTD 2022, without considering these adjustments in our reconciliation, Total Cash Costs would have been $13.4 million and $41.1 million, or $1,479 and $1,820 per ounce of gold sold for each respective period.  Similarly, Total AISC for Q3 2022 and YTD 2022, without considering these inventory impairment adjustments, would have been $15.6 million and $53.7 million, or $1,712 and $2,377 per ounce of gold sold for each respective period.

 

Reconciliation of Average Realized Price of Gold per Ounce Sold

 

Three Months Ended

September 30,

Six Months Ended

September 30,

(in thousands of dollars, except per ounce figures) 2022 2021 2022 2021
Gold revenue $         15,581 $        11,090 $       40,874 $        40,141
Gold ounces sold 9,096 6,214 22,606 22,380
Average realized price per ounce sold $            1,713 $           1,785 $         1,808 $          1,794

 

 

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.  The Company’s principal operation is the 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.

 


The following chart provides additional information on the Company’s increasing grade and recoverable ounces placed on the pad during 2022 on a quarter-by-quarter basis. (CNW Group/Elevation Gold Mining Corp.)

 

Posted November 3, 2022

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