RENO, NEVADA -- (Marketwire) -- 02/25/13 -- Allied Nevada Gold Corp. ("Allied Nevada", "we", "us", "our" or the "Company") (TSX: ANV)(NYSE Amex: ANV)(NYSE MKT: ANV) is pleased to report operating and financial results for the year ended December 31, 2012. The Company produced 136,930 ounces of gold and sold 114,705 ounces of gold at adjusted cash costs(1) of $638 per ounce for the year resulting in record revenues of $214.6 million. Net income increased 30% to $47.7 million or $0.53 per share, compared to $36.7 million or $0.41 per share for fiscal 2011.
2012 Results and Highlights:
-- To date, Hycroft achieved 183 days without a lost time accident amid a significant construction effort and doubling of the workforce at the mine in 2012.-- Revenue increased 41% over 2011 to a record $214.6 million.-- Net income increased by 30% to a record $47.7 million or $0.53 per share in 2012. While significantly higher, net income in 2012 was impacted by increased net interest expense and income tax expense of $17.9 million and $16.4 million respectively (compared with $0.7 million and $6.3 million, respectively, in 2011). The increased interest expense arose from the May 2012 issuance of the senior unsecured notes and additional capital lease obligations of $94.9 million entered into during 2012. These costs were partially offset by lower exploration, development and land holding costs during 2012.-- Record production and sales were achieved in 2012. Production from Hycroft in 2012 of 136,930 ounces of gold and 794,097 ounces of silver was 32% and 66% higher than 2011 production results, respectively. Sales of 114,705 ounces of gold and 696,144 ounces of silver surpassed 2011 sales by 30% and 87%, respectively.-- Adjusted cash costs(1) increased 31% to $638 per ounce in 2012 and were negatively impacted by increased production costs in the first half of 2012, selling costs associated with in-process inventories, and an increase in the average cost per ounce in beginning of the year 2012 inventory compared to 2011. In the first half of 2012, our strip ratio was 1.4:1, increasing our production costs and average cost per ounce sold for 2012. Additionally, the average cost per gold ounce on the leach pads in the beginning of 2012 was $825/oz, an increase of $186/oz compared to the beginning of 2011. The aforementioned increases in adjusted cash costs(1) were partially offset by the additional revenue resulting from the silver ounce to gold ounce ratio increasing to 6.1:1 in 2012 compared to 4.2:1 in 2011.-- Cash used in operations totaled $21.1 million, cash used in investing activities was $275.2 million and financing activities generated $368.4 million of cash, increasing the Company's cash balance at year end to $347 million.-- Year-to-date, up to and including February 21, 2013, we mined and placed 6.0 million tons of ore containing approximately 67,000 ounces of gold and 513,000 ounces of silver. In that same period, approximately 24,000 ounces of gold and approximately 140,000 ounces of silver have been or were available to be sold. We are currently installing additional carbon column capacity and expect to be able to process 100% solution flows in March 2013. The on-site carbon strip circuit capacity will handle all of our carbon.-- Proven and probable reserves were 11.9 million ounces of gold and 509.6 million ounces of silver (1.1 billion tons grading 0.011 opt gold and 0.46 opt silver). The life of mine waste to ore strip ratio declined to 1.15:1 (from 1.26:1).