GoGold Resources Inc. (TSX: GGD) (OTCQX: GLGDF) is pleased to announce the financial results for the third fiscal quarter of 2022, for the three months ended June 30, 2022 where Parral generated $10.4 million in revenue (all amounts are in U.S. dollars) from the sale of 512,670 silver equivalent ounces.
“In the quarter, we continued to focus on our Los Ricos project as we advance Los Ricos South to a pre-feasibility study and continue with our drilling program at Los Ricos North,” said Brad Langille, President and CEO. “Parral continues to produce for us, providing meaningful cash flow, despite the lower market silver price in the quarter, which contributes to the general and administrative costs and the Los Ricos exploration budget.”
During the quarter Parral generated free cash of $3.7 million before working capital changes (Non-IFRS measure, see reconciliation in management’s discussion and analysis as filed on SEDAR). Silver equivalent ounces sold increased by 15% compared to the March quarter end. Production is lower compared to the prior year as the project transitioned to a different zone in the tailings deposit at the start of 2022 which resulted in a lower stacking rate during the year so far to improve pad kinetics.
Highlights for the quarter ending June 30, 2022:
At Los Ricos, the Company drilled 22,778 metres on the projects for the quarter ended June 30, 2022 compared to 26,030 metres in the quarter ending March 31, 2022. The Company capitalized $7.9 million to the projects for drilling, exploration and consulting for the quarter ended June 30, 2022, compared to $6.0 million in the prior year. This included $4.7 million at Los Ricos North and $3.2 million at Los Ricos South. The Corporation is continuing the engineering studies required for a pre-feasibility study at Los Ricos South and undergoing a 100,000 metre drilling campaign at Los Ricos North in 2022 with the focus on increasing ounces in Mineral Resource Estimates.
Following are tables showing summarized financial information and key performance indicators:
|Summarized Consolidated Financial Information||Three months ended Jun 30||Nine months ended Jun 30|
|(in thousands USD, except per share amounts)||2022||2021||2022||2021|
|Revenue||$ 10,389||$ 14,973||$ 29,578||$ 42,282|
|Cost of sales, including depreciation||7,962||8,754||21,402||25,190|
|Net income (loss)||1,110||438||(382)||7,406|
|Basic net income (loss) per share||0.004||0.002||(0.001)||0.028|
|Cash flow from operations||(1,190)||2,714||(7,467)||11,839|
|Key Performance Indicators1||Three months ended Jun 30||Nine months ended Jun 30|
|(in thousands USD, except per ounce amounts)||2022||2021||2022||2021|
|Total tonnes stacked||360,460||480,499||1,311,691||1,347,811|
|Recoverable silver equivalent ounces stacked||475,000||610,000||1,713,000||1,775,000|
|Silver equivalent ounces sold||512,670||563,401||1,357,826||1,706,560|
|AISC per silver equivalent ounce2||$ 17.73||$ 16.98||$ 18.11||$ 16.12|
|Cash cost per silver equivalent ounce2||$ 13.17||$ 13.31||$ 13.29||$ 12.79|
|Realized silver price||$ 20.26||$ 26.58||$ 21.78||$ 24.78|
|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 nine months ended June 30, 2022, notes to the financial statements, and management’s discussion and analysis for the quarter ended June 30, 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. For more information visit gogoldresources.com.
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We acknowledge the [financial] support of the Government of Canada.