GoGold Resources Inc. (TSX: GGD) (OTCQX: GLGDF) announces the financial results for the quarter ending June 30, 2023, including net income of $2.6 million (all amounts are in U.S. dollars) and Parral generating $8.6 million from the sale of 360,011 silver equivalent ounces.
“GoGold maintains a strong balance sheet with $98.7 million USD in cash which continues to allow us to advance our Los Ricos projects in an expeditious manner. Our main focus at GoGold is our flagship assets at Los Ricos. With the upcoming addition of our zinc circuit at Parral, which is in its tenth year of production, Parral is expected to remain a meaningful contributor of cash flow over the next seven years of mine life. The savings and additional revenue which the zinc circuit will provide should significantly reduce our all in sustaining cost at Parral,” said Brad Langille, President and CEO. “We continue to focus on completing the studies required for the upcoming updated mineral resource estimate and preliminary economic assessment at Los Ricos South to be completed by end of summer.”
Financial Highlights for the quarter ending June 30, 2023:
Proposed SART Zinc Circuit
As originally reported on July 12, 2023, the Company has begun the process of adding a zinc circuit to the existing SART plant at Parral. Bench scale and in-field heap leach testing has demonstrated that an addition of a zinc circuit to the SART plant should produce a saleable zinc product and more importantly regenerate cyanide that is expected to increase cash flow at Parral over the next seven years of mine life.
Summary of Zinc circuit effects:
Following are tables showing summarized financial information and key performance indicators:
|Summarized Consolidated Financial Information||Three months ended Jun 30||Nine months ended Jun 30|
|(in thousands USD, except per share amounts)||2023||2022||2023||2022|
|Revenue||$ 8,485||$ 10,389||$ 24,570||$ 29,578|
|Cost of sales, including depreciation1||6,272||7,962||28,796||21,402|
|Operating income (loss)1||245||221||(10,149)||2,101|
|Net income (loss)1||2,604||1,110||(3,593)||(382)|
|Basic net income (loss) per share||0.008||0.004||(0.012)||(0.001)|
|Cash flow used in operations||(299)||(1,190)||(7,210)||(7,467)|
|1Includes a pre-tax non-cash negative inventory adjustment of $10,500 in the nine months ended June 30, 2023|
|Key Performance Indicators1||Three months ended Jun 30||Nine months ended Jun 30|
|(in thousands USD, except per ounce amounts)||2023||2022||2023||2022|
|Total tonnes stacked, fresh tailings||–||360,460||433,043||1,311,691|
|Total tonnes stacked, rehandled tailings||407,738||–||644,262||–|
|Silver equivalent ounces sold||360,011||512,670||1,127,508||1,357,826|
|Adjusted AISC per silver equivalent ounce2||$ 20.85||$ 17.73||$ 13.99||$ 18.11|
|Adjusted Cash cost per silver equivalent ounce2||$ 15.24||$ 13.17||$ 19.38||$ 13.29|
|Realized silver price||$ 23.57||$ 20.26||$ 21.79||$ 21.78|
|1Key performance indicators are unaudited non-GAAP measures, see reconciliation in MD&A.
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, 2023, notes to the financial statements, and management’s discussion and analysis for the quarter ended June 30, 2023, 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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