GoGold Resources Inc. (TSX: GGD) (OTCQX: GLGDF) is pleased to announce the release of financial results for the quarter and year ending September 30, 2020 with record annual revenue of $39.5 million (all amounts are in U.S. dollars) from the sale of 2.2 million silver equivalent ounces which provided cash flow from operations before working capital changes of $8.7 million.
“Parral had a record production year and a record quarter which generated $6.5 million US of cash flow, paying for all of our exploration and general and administrative costs. We have one of the largest drilling programs in Mexico and we are currently self funding from operations at Parral. Parral had an excellent year which resulted in a reversal of a previously recorded impairment of $41.1 million, which really reflects on how strongly that asset is performing now,” Brad Langille, President and CEO stated. “With our $52.7 million US cash balance and the cash flow from our Parral operation, we are well positioned to continue the rapid advancement of the Los Ricos district.”
Financial Highlights for the year ending September 30, 2020:
At Parral, the project generated $39.5 million on sales of 2.2 million silver equivalent ounces for the year ended September 30, 2020, which is an increase of 46% compared to the prior year’s $27.0 million, while costs were similar. All in sustaining costs were $14.72 per ounce and cash costs were $12.24 in 2020, compared to AISC of $14.82 and cash costs of $11.80 in 2019.
With the strength of Parral’s operations in the year, at September 30 the Company recorded a non-cash reversal of impairment of $41.1 million, which was recorded through net income. The Company determined that increased positive cash flows, operational performance, and an increase in metal prices at the Parral project constituted indicators that a previously recorded impairment of $48.2 million on September 30, 2018 at Parral no longer existed, with the difference attributed to depreciation which would have been recorded had the initial impairment not been recorded.
At Los Ricos, the Company capitalized $8.3 million to the projects for drilling, exploration and consulting for the year ending September 30, 2020, compared to $1.8 million in the prior year. This included $5.5 million at Los Ricos South and $2.8 million at Los Ricos North. During the year, GoGold drilled 36,100 metres, released assay results for 194 drill holes, and released an initial Mineral Resource estimate at Los Ricos South. The Measured & Indicated Mineral Resource at Los Ricos South includes 63.7 million ounces silver equivalent (“AgEq”) grading 199 g/t AgEq contained in 10.0 million tonnes (“Mt”), with an Inferred Resource of of 19.9 million ounces AgEq grading 190 g/t AgEq contained in 3.3 Mt.
Financial Highlights for the quarter ending September 30, 2020:
Following are tables showing summarized financial information and key performance indicators:
|Summarized Consolidated Financial Information||Three months ended Sep 30||Year ended Sep 30|
|(in thousands USD, except per share amounts)||2020||2019||2020||2019|
|Revenue||$ 13,756||$ 9,709||$ 39,548||$ 26,972|
|Cost of sales, including depreciation||8,201||8,505||30,597||26,682|
|Operating income (loss)||4,225||4||3,952||(4,410)|
|Basic net income per share||0.206||0.004||0.206||0.048|
|Cash flow from operations before changes in working capital||5,473||1,959||8,749||2,974|
|Key Performance Indicators1||Three months ended Sep 30||Year ended Sep 30|
|(in thousands USD, except per ounce amounts)||2020||2019||2020||2019|
|Total tonnes stacked||417,803||300,263||1,398,633||1,654,393|
|Silver equivalent ounces sold||605,723||572,435||2,197,579||1,758,307|
|AISC per silver equivalent ounce2||$ 14.31||$ 13.78||$ 14.72||$ 14.82|
|Cash cost per silver equivalent ounce2||$ 11.97||$ 11.62||$ 12.24||$ 11.80|
|Realized silver price||$ 22.71||$ 16.96||$ 18.00||$ 15.34|
|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 consolidated financial statements for the year ended September 30, 2020, notes to the financial statements, and management’s discussion and analysis for the year ended September 30, 2020, 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.
Silver Viper Minerals Corp. (TSX-V: VIPR) (OTC: VIPRF) is plea... READ MORE
G2 Goldfields Inc. (TSX-V: GTWO) (OTCQX: GUYGF) is pleased to ann... READ MORE
Collective Metals Inc. (CSE: COMT) is pleased to announce that th... READ MORE
Laramide Resources Ltd. (TSX: LAM) (ASX: LAM) (OTCQX: LMRXF) is p... READ MORE
Marathon Gold Corporation (TSX: MOZ) announces its financial resu... READ MORE
We acknowledge the [financial] support of the Government of Canada.