KEY HIGHLIGHTS OF THE YEAR
-- Net loss before income taxes for the year ended April 30, 2013 was $2.8 million or $0.04 per share. This compares to net income of $42.3 million or $0.58 per share in fiscal 2012. Net loss and comprehensive loss for the year was $3.6 million or $0.05 per share. Revenues for the year were $151.7 million compared to $159.8 million in fiscal 2012.-- The Company generated $24.6 million in cash flows from operations during the 2013 Fiscal Year compared to $51.2 million is fiscal 2012. This was mainly due to lower revenue combined with higher non-production costs such as interest and finance expense.-- Operating costs for the year were $337 per ton of ore ($1,119 per ounce of gold). This compared to $287 per ton and $804 per ounce in fiscal 2012. Inventory adjustments played a lesser role over this longer time period, accounting for $12 of the variance in the cost per ton, and $33 of the variance in the cost per ounce. The remaining variances between the last two fiscal years were largely caused by the unexpected delay, for technical reasons, in the Service Cage Project, which resulted in less ore being produced at a lower grade than expected. During this delay, the Company pushed ahead with work and hiring related to the Mine Expansion Project. The Company's long term target is to reduce the operating costs to less than $250 per ton by completing the Mine Expansion Project and increasing production.-- After meeting all operating costs, spending $91.1 million on infrastructure and $17.1 million on exploration, total cash resources (including short-term investments) as at April 30, 2013 were $77.0 million. Subsequent to year-end, the terms of the $30 million promissory note issued by the Company as partial consideration for its 2012 acquisition of seven joint venture properties from Osisko Mining Ltd. (formerly Queenston Mining Inc.) were amended. Pursuant to the amendment, interest under the promissory note was not payable for any period subsequent to December 31, 2012, representing a monthly interest saving to the Company of $140,000 or $557,000 for fiscal 2013. In connection with the amendment, the Company deposited the final $30 million plus interest ($30.6 million) payment into escrow, which funds were released to Osisko upon obtaining the severance of one of the former joint venture properties. As at July 10, 2013, total cash resources has decreased to $40.8 million largely as a result of making this payment.-- Expansion capital remains on budget at $95 million and spending is 90% complete with $85.3 million spent by the end of April, 2013. Project spending in some non-critical path Expansion Project areas, such as the Mill Expansion, has been delayed where practicable to match progress on the critical path elements of the project and to preserve cash.-- For the year, 304,062 tons of ore were produced at a head grade of 0.31 opt and a gold recovery rate of 95.72% to produce 91,518 ounces. The yearly tonnage of ore produced was a record for the Company and the Mine.-- Gold poured for the year was 91,786 ounces. A total of 91,771 ounces was sold at an average price of $1,653 (Fiscal 2012 $1,633).-- The recovered ore grade for the year decreased due to the depletion of higher grade SMC ore mining workplaces that could not be replaced until after the service cage came on line.-- The mix of ore tons in most months this year has been roughly one ton of ore coming from higher grade ore mining workplace to three tons of ore coming from a lower grade ore mining workplace. With the new service cage now in operation, ore ton ratios are expected return to a higher- grade balance realized in previous fiscal years. Ore grade is expected to fluctuate throughout the year, but the yearly average ore grade is also expected to increase over this year compared to the previous year, as additional high grade ore mining workplaces come on line.-- Net proceeds from financing activities for the year amounted to $132.9 million. Of that amount, $120.6 million was generated from two private placement financings of convertible debentures and the remainder was primarily attributable to lease financing of mobile equipment.-- The Company workforce totalled 1,059 as of April 30, 2013, an increase of 83 in the quarter, and an increase of 152 over the year. By the completion of the Mine Expansion Project, the Company expects to employ approximately 1,250 people. Contractor employment is expected to drop by roughly 100 positions at the same time.-- The first battery operated truck has been slung underground and is undergoing early testing and trials with no significant issues encountered to date.-- The number of ore mining faces currently active in the production cycle is 49, with 21 additional ore mining workplaces being developed. Another 20 workplaces are available for production, but are not active in the cycle at this time. The majority of these are simply out of sequence at present, but a minority are waiting for resources to be available or deployed. Thirty additional ore mining faces are at the planning stage. Work to increase the number of active production workplaces was increased as a result of the service cage being available. The activity level in some currently active ore mining workplaces is also being increased.-- As at December 31, 2013, proven and probable reserves were 3,230,000 tons at 0.45 opt for 1,454,000 contained ounces (consisting of proven reserves of 1,361,000 tons at 0.39 opt for 530,000 contained ounces and probable reserves of 1,869,000 tons at 0.49 opt for 924,000 contained ounces). Measured and indicated resources were 3,813,000 tons at 0.49 opt for 1,871,000 contained ounces (consisting of measured resources of 1,094,000 tons at 0.39 opt for 430,000 contained ounces and indicated resources of 2,719,000 tons at 0.53 opt for 1,441,000 contained ounces), and inferred resources were 2,238,000 tons at 0.52 opt for 1,157,000 contained ounces. The Company's news release dated May 21, 2013 sets out further details of these resources and reserves.-- Moving forward to fiscal 2014, exploration spending is expected to decline as available resources are redirected to production and Expansion Project activities.