WINNIPEG, MANITOBA -- (Marketwired) -- 08/12/13 -- (All amounts in Canadian dollars unless otherwise stated)
San Gold Corporation (TSX: SGR)(OTCQX: SGRCF) today reported 2013 second quarter financial and operating results.
During the quarter, the Company produced 22,526 ounces of gold with an average milled grade of 5.05 grams per tonne with cash operating costs of $783 per ounce of gold sold. The Company generated income from operations of $3.4 million, a cash contribution from operations before changes in non-cash working capital of $5.0 million, and recognized a quarterly total and comprehensive loss of $3.6 million.
The Company initiated a number of cost-cutting initiatives during the quarter in response to recent adverse market conditions. Compared with the same quarter last year, the Company reduced its total cash operating costs by $2.7 million, capital expenditures by $3.9 million, and general and administrative expenses by $2.6 million while maintaining production levels.
"I am very pleased with the progress we have made this quarter in improving grade and stabilizing production levels while reducing costs across all aspects of the company. I anticipate continued improvement in the Company's financial performance through the remainder of the year as the full effect of our cost-cutting initiatives takes hold," said Ian Berzins, San Gold's President, CEO and Chief Operating Officer.
Through the first two quarters of the year the Company has completed $10.4 million of flow- through eligible exploration pursuing a number of prospective drilling targets near existing infrastructure. The Company will continue to pursue these targets through the remainder of 2013 with its remaining $6 million in flow-through exploration commitments and anticipates a substantial reduction in surface exploration in 2014 once these commitments are complete.
2013 Second Quarter Highlights:
-- Produced 22,526 ounces of gold, a 23% increase compared to 18,241 ounces in the second quarter of 2012.-- Achieved average mill throughput of 1,784 tons per day for the quarter, a 39% increase compared to average mill throughput of 1,281 tons per day in the second quarter of 2012.-- Mined ore at a record quarterly rate of approximately 1,905 tons per day for a total of 173,350 tons, an increase of 11% compared to the rate of 1,709 tons per day in the same period of 2012.-- Achieved total cash costs of $783 per ounce of gold sold compared to $970 per ounce in the second quarter of 2012 and realized a cash operating margin of $611 per ounce of gold sold with a realized price of $1,394 per ounce through the quarter.-- Achieved a total cost per ton of ore of $105, a 36% decrease compared to a total cost per ton of ore of $164 in the second quarter of 2012.-- Generated cash flow from operating activities before changes in non-cash working capital of $5.0 million, compared to $5.7 million in the second quarter of 2012, despite a reduction in the realized price of gold.-- Generated quarterly operating income from operations of $3.4 million, compared to income from operations of $2.4 million in the second quarter of 2012.-- Recognized quarterly revenue of $30.4 million on gold sales of 21,796 ounces at a realized price of $1,394 per ounce compared to revenue of $31.6 million in the second quarter of 2012.-- Recognized quarterly total and comprehensive loss of $3.6 million, compared to total and comprehensive loss of $7.8 million in the second quarter of 2012.-- Had a cash and short term investments balance of $21.3 million as at June 30, 2013.-- Accessed the down dip extension of the 007 zone at depth on 26 level and began silling on the structure.-- Began a program to segregate lower grade ore in a separate surface stockpile to be milled as an incremental feed source at a later date.-- Completed approximately 74,000 metres of exploration and definition diamond drilling.-- Purchased mineral claims from Wildcat Exploration Ltd. in the subsequent period.