GoGold Resources Inc. (TSX: GGD) (OTCQX: GLGDF) is pleased to announce the financial results for the quarter ending March 31, 2023, with Parral generating $7.6 million (all amounts are in U.S. dollars) from the sale of 355,741 silver equivalent ounces.
“GoGold maintains a strong balance sheet with over $100 million USD in cash which continues to allow us to advance our Los Ricos South project in an expeditious manner. Reprocessing of older material stacked in 2015-2016 at Parral allows us to maintain a strong cash balance by deferring sustaining capital and more rapidly moving ounces from inventory to cash. Our most important priority is the advancement of Los Ricos South towards production and cash flow, and after that advancing Los Ricos North. We have focused on having a strong cash position so that we have the liquidity to achieve this,” said Brad Langille, President and CEO. “In addition to the advancement of Los Ricos South, we expect to release the results on our initial preliminary economic assessment at Los Ricos North shortly. This will be followed by an updated resource, PEA which will be completed for Los Ricos South this summer, with a pre-feasibility study before year’s end.
Financial Highlights for the quarter ending March 31, 2023:
Following are tables showing summarized financial information and key performance indicators:
|Summarized Consolidated Financial Information||Three months ended Mar 31||Six months ended Mar 31|
|(in thousands USD, except per share amounts)||2023||2022||2023||2022|
|Revenue||$ 7,607||$ 10,334||$ 16,085||$ 19,189|
|Cost of sales, including depreciation1||13,760||6,987||22,525||13,440|
|Operating income (loss)1||(8,152)||1,305||(10,395)||1,880|
|Basic net income (loss) per share||(0.011)||(0.004)||(0.020)||(0.005)|
|Cash flow used in operations||(2,734)||(1,694)||(6,914)||(6,277)|
|1Includes a pre-tax non-cash negative inventory adjustment of $7,962 and $10,500 in the three and six months ended March 31, 2023|
At Parral during the quarter, old material which had originally been stacked on the heap leach pad in 2015-2016 was removed from the pad, re-agglomerated, and then restacked using the current stacking process. It was determined that the material could be rehandled and restacked with quicker metal recoveries providing positive cash flow, as well as reclaiming heap leach pad area for future stacking which will defer pad expansion capital. An assessment of the additional costs associated with rehandling and restacking resulted in a negative pre-tax non-cash inventory adjustment of $8.0 million in the quarter and $10.5 million for the six months ending March 31, 2023.
|Key Performance Indicators1||Three months ended Mar 31||Six months ended Mar 31|
|(in thousands USD, except per ounce amounts)||2023||2022||2023||2022|
|Total tonnes stacked, fresh tailings||80,680||377,874||433,043||951,231|
|Total tonnes stacked, rehandled tailings||236,524||–||236,524||–|
|Silver equivalent ounces sold||355,741||443,942||767,497||845,156|
|Adjusted AISC per silver equivalent ounce2||$ 19.76||$ 18.12||$ 18.69||$ 18.34|
|Adjusted Cash cost per silver equivalent ounce2||$ 14.00||$ 13.24||$ 13.41||$ 13.37|
|Realized silver price||$ 21.39||$ 23.28||$ 20.96||$ 22.70|
|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 six months ended March 31, 2023, notes to the financial statements, and management’s discussion and analysis for the quarter ended March 31, 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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