TORONTO, ONTARIO -- (Marketwired) -- 08/29/13 -- Anaconda Mining Inc. ("Anaconda" or "the Company") (TSX: ANX) is pleased to report its financial and operating results for the fiscal year ended May 31, 2013. The Company generated net income of $7,438,629 or $0.04 per fully diluted share compared with net income of $3,298,063 or $0.02 per fully diluted share for the fiscal year ended May 31, 2012. Fiscal 2013 net income consisted of income from operations of $3,460,629 or $0.02 per share and the recording of a deferred income tax recovery of $3,978,000 or $0.02 per share. Deferred income tax assets were recorded when the Company removed its going concern note to the financial statements and recognized the tax value of its income tax loss carry forward amounts.
President and CEO, Dustin Angelo, stated, "The Company had another record year in terms of sales volume, revenue, operating cash flow and net income. We generated nearly $7 million in EBITDA and over $9 million in mine level cash flow, which is tremendous when you consider our market capitalization. We were also successful in achieving our number one goal for the fiscal year, which was to pay off all of our high cost debt. As at May 31, 2013, we had a very clean balance sheet with only approximately $260,000 in low cost, government issued loans. The balance sheet will be fortified in September when the Company receives the US$1 million commercial production milestone payment from our partners in Chile. Going forward, we will also begin to receive royalty payments from Chile so this non-core asset has, once again, become a cash generator."
The Company's core gold mining business continues to improve and management has set challenging goals for fiscal 2014. The Company has budgeted to produce and sell approximately 18,000 ounces of gold for the year and generate nearly $4 million in net income using a gold price of $1,400 per ounce and an average head grade of approximately 2.1 grams per tonne. Cash operating costs at the mine level (production, royalty, Pine Cove G&A, etc.) are expected to be approximately $960 per ounce and all in cash costs including corporate, capital expenditures and exploration are projected to be approximately $1,200 per ounce.
Highlights for the fiscal year ended May 31, 2013
BALANCE SHEET IMPROVEMENT:
-- As at May 31, 2013, the Company had cash and cash equivalents of $466,899 and net working capital of $1,333,047.-- During the year ended May 31, 2013, the Company made principal payments of $4,054,727 and reduced its overall principal amount of debt to $262,338. Of the total principal paid, $3,697,280 went against its Series I Debenture, Series II Debenture and the Thorsen loan, paying off these obligations in full.
-- For the year ended May 31, 2013, the Company sold 14,879 ounces of gold and generated $24,173,439 in revenue at an average sales price of $1,625 per ounce.-- Cash operating cost per ounce sold at the Pine Cove Project for the year ended May 31, 2013 was $1,004 per ounce.-- Total cash cost per ounce sold, including corporate administration, capital expenditures and exploration and evaluation asset costs for the year ended May 31, 2013 was $1,341 per ounce.-- At the Pine Cove project, earnings before interest, depreciation and depletion and share based compensation ("EBITDA") for the year ended May 31, 2013 was $9,233,758.-- On a consolidated basis, EBITDA for the year ended May 31, 2013 was $6,914,426.-- Net income for the year ended May 31, 2013 was $7,438,629 or $0.04 per share basic and $0.04 per fully diluted share, respectively. Net income attributable to operations was $3,460,629 or $0.02 per share and net income related to the recording of a deferred income tax asset was $3,978,000 or $0.02 per share.-- Purchase of property, mill and equipment for the year ended May 31, 2013 was $1,665,632.