WINNIPEG, MANITOBA -- (Marketwire) -- 03/25/13 -- (All amounts in Canadian dollars unless otherwise stated)
San Gold Corporation (the "Company") (TSX: SGR)(OTCQX: SGRCF) is pleased to report its quarterly and full-year financial and operating results for 2012 for the Company's 100% owned Rice Lake Mining Complex (the "Property") located in Bissett, approximately 235 kilometres northeast of Winnipeg, Manitoba, Canada. The Property has a permitted, modern gold mill currently processing ore at a capacity of 2,500 tons per day, as well as modern surface infrastructure, including a licensed tailings management facility and is connected to the Manitoba power grid system.
"The Company continues to make significant progress in building the Rice Lake Mining Complex. We have increased production year over year while improving cash flow from operations," said Ian Berzins, President and Chief Executive Officer of San Gold. "Our recent convertible debenture financing ensures that the Company is well funded to finance its development plan. This will enable us to build the infrastructure necessary to exploit the resource well into the foreseeable future. We are confident that markets will recognize that this investment will lead to improved operational and financial performance."
Q4 Financial and Operating Highlights
-- Operating income of $3.5 million, compared to an operating loss of $7.5 million in Q4 2011 and Net loss of $3.9 million, compared to a Net income of $3.2 million in Q4 2011.-- Production of 19,019 ounces of gold, a 7% decrease compared to 20,359 ounces in Q4 2011.-- Revenue of $34.0 million on gold sales of 20,251 ounces at a realized price of $1,683 per ounce, a 3% increase from revenue of $33.0 million on gold sales of 19,482 ounces in Q4 2011.-- Average mill throughput of 1,827 tons per day.
Full Year Financial and Operating Highlights
-- Operating income of $20.6 million, compared to a 2011 operating income of $30.4 million and a net loss of $13.2 million, compared to a 2011 net loss of $5.1 million.-- Record production of 86,506 ounces of gold, a 16% increase over 2011 production of 74,277 ounces.-- Record cash flow from operating activities before changes in non-cash working capital of $42.1 million, compared to $19.9 million in 2011.-- Record revenue of $142.1 million on gold sales of 85,690 ounces of gold at a realized price of $1,659 per ounce, a 25% increase from 2011 revenue of $114.1 million on gold sales of 71,684 ounces of gold.-- Total cash costs of $855 per ounce of gold sold compared to 2011 cash costs of $848 per ounce.-- Realized a cash operating margin of $804 per ounce of gold sold with a realized price of $1,659 per ounce.-- Mill throughput of 1,719 tons per day, a 36% increase compared to 2011 mill throughput of 1,263 tons per day.-- Cash and cash equivalents balance of $11.6 million as at December 31, 2012.-- Completed 221,191 metres of exploration and definition diamond drilling.-- Continued exploration success along the depth extension of the 007 zone that returned 12.6 g/t gold over 6.0 metres and 15.5 g/t gold over 11.1 metres.-- Appointed Mr. Torben Jensen as Vice-President, Corporate Development, Mr. Michael Michaud VP, Exploration and appointed Mr. Robert (Bob) Brennan as an independent Director of the Company.-- Completed a number of transactions, expanding the Company's land base in the Rice Lake gold camp and in northern Ontario.