-- Produced 55,000 ounces of gold, a 36% increase from the first quarter of 2012-- Reported cash operating cost per ounce (exclusive of the 5% royalty) of $358 per ounce of gold sold, well below the Company's annual cash operating cost guidance of $415 to $435. Total cash costs (including royalties) were $449 per ounce of gold sold-- Achieved average crusher throughput of 17,900 tonnes per day ("tpd"), above the Company's annual guidance of 17,500 tpd for the second consecutive quarter-- All-in sustaining costs (which include total cash costs, exploration, corporate and administrative, share based compensation and sustaining capital costs) were $692 per ounce of gold sold. The Company anticipates all-in sustaining costs per ounce to be between $785 and $825 in 2013-- Announced an update on project permitting in Turkey, including substantial progress on Kirazli EIA approval-- Replaced mineral reserves mined out at Mulatos in 2012, and increased measured and indicated resources by 10% in Turkey-- Withdrew the Company's offer to acquire all of the common shares of Aurizon
Subsequent to quarter-end:
-- Announced a share buyback program, pursuant to which the Company will offer to purchase for cancellation up to 10% of the public float of its outstanding common shares, or 11,373,316 shares over the next 12 months (limited to a maximum of 94,061 shares during any trading day)
First Quarter 2013 Financial Results
Strong operating margins from high realized gold prices and continued low cash costs contributed to the Company generating substantial cash provided by operating activities and earnings in the first quarter of 2013. Cash from operating activities before changes in non-cash working capital in the first quarter of 2013 of $40.4 million ($0.32 per basic share) decreased 10% relative to the same period of 2012.
Earnings before income taxes in the first quarter of 2013 were $38.8 million or $0.31 per basic share, compared to $39.5 million or $0.33 per basic share in the first quarter of 2012. On an after-tax basis, earnings in the first quarter of 2013 of $26.0 million or $0.21 per basic share decreased 12% over the comparable period of 2012 as a result of higher amortization attributed to mill production, costs incurred related to the Aurizon offer, and a higher effective tax rate, partially offset by a higher number of ounces sold during the period.
Capital expenditures in the first quarter of 2013 totalled $13.9 million. Sustaining capital spending in Mexico in the first quarter included operating and expansion capital of $4.1 million, consisting of $2.0 million for component changes on mobile equipment, $1.2 million for interlift liners on the leach pad, and $0.9 million invested in other smaller capital projects.
In addition, the Company invested $3.2 million in Mexico focused on continuing development of the El Salto portion of the Mulatos pit, pit design and stability work at Escondida and $1.5 million in capitalized exploration. The Company also invested $6.4 million in development projects in Turkey, focused on exploration, engineering and permitting work.
Key financial highlights for the first quarter of 2013 compared to the first quarter of 2012 are presented at the end of this release in Table 1. The unaudited interim consolidated statements of financial position, comprehensive income, and cash flows for the three months ended March 31, 2013 and 2012 are presented at the end of this release in Table 2.