GoGold Resources Inc. (TSX: GGD) (OTCQX: GLGDF) is pleased to announce the financial results for the second fiscal quarter of 2022, for the three months ended March 31, 2022 where Parral generated $10.3 million in revenue (all amounts are in U.S. dollars) from the sale of 443,942 silver equivalent ounces.
“In the quarter, we continued to focus on our Los Ricos project as we continue to advance our second 100,000 metre drill program,” said Brad Langille, President and CEO. “Parral continues to produce for us, providing meaningful cash flow contributing to the general and administrative costs and the Los Ricos exploration budget. The cash flow generated at Parral increased by over $1 million from the December quarter as we completed the transition between tailings zones at the project.”
During the quarter Parral generated free cash of $4.4 million before working capital changes. Silver equivalent ounces sold increased by 11% compared to the December quarter end. Production is lower compared to the prior year as the project transitioned to a different zone in the tailings deposit which temporarily affected the leaching of pad kinetics. Stacking of recoverable ounces on the heap leach pad exceeded production by 18%, which resulted in a cash investment of $3.1 million associated with the increase in heap inventory. The Corporation is expected to benefit from production from these stacked ounces in future quarters.
Highlights for the quarter ending March 31, 2022:
At Los Ricos, the Company drilled 21,052 metres on the projects for the quarter ended March 31, 2022 compared to 22,045 metres in the quarter ending March 31, 2021. The Company capitalized $6.1 million to the projects for drilling, exploration and consulting for the quarter ended March 31, 2022, compared to $5.6 million in the prior year. This included $4.0 million at Los Ricos North and $2.1 million at Los Ricos South. The Corporation is undergoing a 100,000 metre drilling campaign at Los Ricos North in 2022 with the focus on increasing ounces in Mineral Resource Estimates.
Following are tables showing summarized financial information and key performance indicators:
|Summarized Consolidated Financial Information||Three months ended Mar 31||Six months ended Mar 31|
|(in thousands USD, except per share amounts)||2022||2021||2022||2021|
|Revenue||$ 10,334||$ 13,232||$ 19,189||$ 27,309|
|Cost of sales, including depreciation||6,987||8,027||13,440||16,436|
|Net (loss) income||(1,618)||2,732||(1,492)||6,968|
|Basic net (loss) income per share||(0.004)||0.010||(0.005)||0.026|
|Cash flow from operations||(1,694)||3,269||(6,277)||9,132|
|Key Performance Indicators1||Three months ended Mar 31||Six months ended Mar 31|
|(in thousands USD, except per ounce amounts)||2022||2021||2022||2021|
|Total tonnes stacked||377,874||417,487||951,231||867,313|
|Recoverable silver equivalent ounces stacked||537,000||513,000||1,238,000||1,165,000|
|Silver equivalent ounces sold||443,942||546,979||845,156||1,143,159|
|AISC per silver equivalent ounce2||$ 18.12||$ 16.27||$ 18.34||$ 15.70|
|Cash cost per silver equivalent ounce2||$ 13.24||$ 12.81||$ 13.37||$ 12.53|
|Realized silver price||$ 23.28||$ 24.19||$ 22.70||$ 23.89|
|1Key performance indicators are unaudited non-GAAP measures.|
|2Gold 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 three and six months ended March 31, 2022, notes to the financial statements, and management’s discussion and analysis for the quarter ended March 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 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.
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