SAS reports 2013 second quarter results, beating cash cost guidance
Canada NewsWire
TORONTO, Aug. 13, 2013
All dollar amounts are stated in Canadian dollars, unless otherwise indicated
(1) See "non-GAAP Measures" for an explanation of non-GAAP
TORONTO, Aug. 13, 2013 /CNW/ - St Andrew Goldfields Ltd. (T-SAS) (OTCQX-STADF), ("SAS" or the "Company") reports a net loss attributable to shareholders for Q2 2013 of $1.1 million, or nil on a per share basis, compared to net income of $4.4 million, or $0.01 per share, for Q2 2012. For Q2 2013, adjusted net loss (1) was $0.9 million, or nil on a per share basis, compared to adjusted net earnings of $5.6 million, or $0.02 per share, for Q2 2012.
Net loss and adjusted net loss for the quarter were impacted by the significant decrease in the price of gold as well as an increase in non-cash depreciation and depletion expense of $3.8 million when compared to Q2 2012.
Cash provided by operating activities for Q2 2013 was $7.0 million or $0.02 per share, compared to $9.1 million or $0.02 per share in Q2 2012. Net cash outflow (1) for the quarter was $0.3 million as compared to net cash flow of $1.0 million in Q2 2012. Net cash flow was negatively impacted by a $3.2 million decrease in net changes in operating working capital during Q2 2013.
Production was in line with a total of 25,353 ounces of gold derived from the three operations. Cash costs during the quarter were below guidance, with mine cash costs of US$780 per ounce and total cash costs (1) (including royalty costs) of US$897 per ounce. SAS reiterates its 2013 production guidance of between 95,000 to 105,000 ounces of gold with mine cash costs between US$800 to US$850 per ounce.
Subsequent to quarter end, SAS announced that Jacques Perron, President & CEO, would be stepping down from his position to pursue a similar opportunity with another mining company effective October 31, 2013. SAS is currently conducting a search for Mr. Perron's replacement and will announce a successor as soon as one has been chosen. The goals and objectives of the Company as well as its ability to meet them are not affected by this change in leadership as the senior management team will continue to work with the Board of Directors to achieve its near-term objectives.
"We had another strong quarter of production, with cash costs coming in below guidance", said Jacques Perron, President & CEO of SAS. "Although we saw a slight net cash outflow due to one-time changes in operating working capital, we believe we will return to a net cash flow positive state in the second half of 2013. In light of the drastic fluctuation in the gold price at the end of the first quarter, we revised our capital expenditure programs, and at the end of the second quarter, we saw a substantial reduction in our overall level of spending. Grade improved at both Holloway and Hislop and we expect to transition mining at Hislop to the West Pit in the third quarter. We are poised to meet our production guidance for the year, and we are confident we will also meet or beat our cash cost guidance. "
Q2 2013 Conference Call Information
A conference call and webcast is scheduled for 10:00am EDT, Wednesday, August 14, 2013 to discuss the Q2 2013 results. Participants are invited to join via webcast from the Company's website under the section titled "Events", at www.sasgoldmines.com. A recorded playback of the call will also be available via the website and will be posted within 24 hours of the call.
Q2 2013 Highlights
| Produced 25,353 ounces of gold from three operations (Holt, Holloway and Hislop). | An increase of 10% when compared to Q2 2012 as a result of the increased production at Holt. |
| Sold 25,060 ounces of gold at an average realized price per ounce of gold sold (1) of US$1,428 per ounce for revenues of $36.7 million. | Despite a US$192 per ounce decrease in the average realized price per ounce of gold sold (1), gold sales revenue were in line with Q2 2012. |
| Mine cash costs of US$780 per ounce and a royalty cost of US$117 per ounce, for a total cash cost per ounce of gold sold (1) of US$897 per ounce. | Achieved a US$22 per ounce reduction in total cash cost per ounce of gold sold (1) over Q2 2012. Mine cash cost per ounce of gold sold (1) of US$780 for Q2 2013 is below the Company's guidance of US$800- US$850 per ounce. |
| Earned cash margin from mine operations (1) of $13.7 million and operating cash flow of $7.0 million or $0.02 per share. | Despite a 12% decrease in the average realized price per ounce of gold sold (1) when compared to Q2 2012, both cash margin from mine operations (1) and operating cash flow remains strong. Net cash out flow (1) of $0.3 million for the quarter was negatively impacted by a $3.2 million decrease in changes to operating working capital. |
| Invested $5.0 million in mine capital expenditures. | Mine capital expenditures decreased by $3.8 million or 43% when compared to Q2 2012, as a result of the revised expenditure program adopted at the beginning of Q2 2013. |
| Incurred $1.1 million in exploration and project development expenditures at the Taylor Project ("Taylor"). | Processed approximately 8,500 tonnes of the bulk sample from the 1008 lens of the West Porphyry Zone ("WPZ") at Taylor. Underground drilling is currently targeting the 1004 lens with results expected before the end of August. |
| Operating and Financial Summary | ||||||||||
| Amounts in thousands of Canadian dollars, except per unit amounts | Q2 2013 | Q2 2012 | YTD 2013 | YTD 2012 | ||||||
| SAS Operating Results | ||||||||||
| Gold production (ounces) | 25,353 | 23,016 | 49,814 | 44,034 | ||||||
| Commercial gold production sold (ounces) | 25,060 | 22,495 | 48,069 | 42,820 | ||||||
| Per ounce data (US$) | ||||||||||
| Average realized price per ounce of gold sold (1) | $ | 1,428 | $ | 1,620 | $ | 1,526 | $ | 1,656 | ||
| Mine cash costs | $ | 780 | $ | 785 | $ | 786 | $ | 819 | ||
| Royalty costs | 117 | 134 | 131 | 137 | ||||||
| Total cash cost per ounce of gold sold (1) | $ | 897 | $ | 919 | $ | 917 | $ | 956 | ||
| SAS Financial Results | ||||||||||
| Gold sales and total revenue | $ | 36,723 | $ | 37,073 | $ | 74,913 | $ | 71,369 | ||
| Cash margin from mine operations (1) | $ | 13,715 | $ | 16,196 | $ | 30,124 | $ | 30,119 | ||
| Net income (loss) for the period | $ | (1,093) | $ | 4,357 | $ | (54) | $ | 7,091 | ||
| Adjusted net earnings (loss) (1) | $ | (874) | $ | 5,551 | $ | 196 | $ | 7,585 | ||
| Operating cash flow | $ | 6,968 | $ | 9,113 | $ | 20,748 | $ | 17,369 | ||
| Net cash flow (1) | $ | (347) | $ | 1,014 | $ | 3,444 | $ | 503 | ||
| Per share information: | ||||||||||
| Net income (loss) | $ | 0.00 | $ | 0.01 | $ | 0.00 | $ | 0.02 | ||
| Adjusted net earnings (loss) (1) | $ | 0.00 | $ | 0.02 | $ | 0.00 | $ | 0.02 | ||
| Operating cash flow (1) | $ | 0.02 | $ | 0.02 | $ | 0.06 | $ | 0.05 | ||
| SAS Financial Position | June 30, 2013 | December 31, 2012 | ||||||||
| Cash and cash equivalents | $ | 31,500 | $ | 30,656 | ||||||
| Working capital | $ | 16,460 | $ | 18,210 | ||||||
| Total assets | $ | 218,715 | $ | 219,748 | ||||||
| Long-term debt | $ | 14,954 | $ | 18,581 | ||||||
Financial Performance
Gold sales revenues saw a slight decrease over Q2 2012 despite a US$192 per ounce decrease in the average realized price per ounce of gold sold (1). Total cash cost per ounce of gold sold (1) decreased by US$22 per ounce when compared to Q2 2012 mainly due to an increase in gold production and a reduction in royalty costs due to the decrease in the gold price. The increase in gold sales during the quarter offset by a 12% or US$192 per ounce decrease in the average realized price per ounce of gold sold (1) resulted in a $2.5 million decrease in cash margin from mine operations (1).
During the quarter, depreciation and depletion expenses increased by $3.8 million when compared to Q2 2012. The increase resulted from the depletion of mineral reserves and resources at the operations, and the loss of approximately 26,000 contained ounces in mineral reserves at Hislop as a result of the updated mineral reserves and resource model and pit optimization completed at year end 2012.
Mark-to-market on derivative instruments in Q2 2013 resulted in a gain of $0.7 million compared to a loss of $1.6 million in Q2 2012, due to the significant decline in the price of gold and the strengthening of the US dollar relative to Canadian dollar.
Holt Mine, Operations and Financial Review (see "Operating and Financial Statistics" at the end of this release)
During Q2 2013, the Holt Mine ("Holt") produced 13,706 ounces of gold, an increase of 22% over Q2 2012. Gold sales revenue increased by 14% when compared to Q2 2012 as a result of the increase in production offset by a decrease in the average realized price per ounce of gold sold (1).
Total cash cost per ounce of gold sold (1) decreased by US$46 per ounce or 5% from Q2 2012 mainly as a result of the increase in gold production sold and the reduction in royalty costs due to the decline in the price of gold.
Cash margin from mine operations (1) increased by $0.5 million over Q2 2012 due to the increase in production, offset partially by a decrease in the average realized price per ounce of gold sold (1). Holt contributed 68% of the total cash margin from mine operations (1) earned during the quarter.
Holt is expected to contribute approximately 55% of the Company's total gold production for 2013.
Holloway Mine, Operations and Financial Review (see "Operating and Financial Statistics" at the end of this release)
The Holloway Mine ("Holloway") produced 5,874 ounces of gold for Q2 2013, which is a slight decrease from the production level achieved in Q2 2012. For Q2 2013, ore grade improved by 14% while the mill recovery rate of 92.6% exceeded the Company's forecast recovery due to improved mineralogical conditions in the areas mined during the quarter. Development crews continue to provide access for additional areas within the Smoke Deep Zone ("Smoke Deep") in order to sustain the production profile for the mine. Underground definition drilling continued throughout the quarter with positive results.
Gold sales revenue for the quarter decreased by 20% when compared with Q2 2012 as a result of decrease in the average realized price per ounce of gold sold (1).
Total cash cost per ounce of gold sold (1) during the quarter increased by US$114 per ounce when compared to Q2 2012, mainly due to the decrease in throughput. Cash margin from mine operations (1) decreased by $2.0 million over Q2 2012 as a result of the increase in cash costs as well as the decrease in the average realized price per ounce of gold sold (1).
Holloway is expected to contribute approximately 23% of the Company's total gold production for 2013.
Hislop Mine, Operations and Financial Review (see "Operating and Financial Statistics" at the end of this release)
The Hislop Mine ("Hislop") produced 5,773 ounces of gold during Q2 2013. The head grade averaged 2.43 g/t Au, above reserve grade for the mine, with mill recoveries of 84%, which was in line with expectations.
Commercial gold production sold during the quarter was in line with that achieved in Q2 2012.
Total cash cost per ounce of gold sold (1) decreased by US$33 per ounce over Q2 2012 as a result of higher head grade.
Hislop is expected to contribute approximately 22% of the Company's total gold production for 2012.
Taylor Project Update ("Taylor")
During Q2 2013, SAS processed approximately 8,500 tonnes of the bulk sample from the 1008 lens, at an average grade of 2.65 g/t Au, and recovered 686 ounces of gold. Mill recovery of 95.2% was above expectations, especially considering the grade of the material processed, and mill throughput averaged 128 tonnes per hour. Reconciled and calculated head grades from the bulk sample correlated within 15% of the face chip samples and the tower sampling program. This validated the Company's process for forecasting grades at Taylor, which is important in this type of coarse gold environment.
At the beginning of Q2 2013, SAS made the decision to advance the ramp in order to provide an optimal drill platform to focus a drill program on the 1004 lens, which is slated to be the site of the second bulk sample. This is the location of approximately 91% of the reserves and is better drill defined than the 1008 lens. The results of this phase of drilling are expected before the end of August. The results of this drill program and the gold price environment will be the determining factors on the rate of advancement of Taylor.
Exploration Projects
Exploration activities during Q2 2013 were focussed on the targets at Holloway and Hislop which totalled approximately 18,000 metres of drilling.
Holloway Mine - Smoke Deep and Sediment Zones
Drilling during the quarter focussed on both the near surface, and the down dip and down plunge extension of Smoke Deep to the east. Surface drilling also targeted the near surface extension of the Sediment Zone. Approximately 6,700 metres were drilled from surface and approximately 1,000 metres were drilled from the 550m Level drift underground.
Hislop Mine - Hislop North Project ("Hislop North") and Hislop Pit Complex
Drilling at Hislop North focussed on tightening the drill spacing on the 147 and Grey Fox zone extensions, from the claim boundary towards the pit with phase 1 drilling now complete. SAS is pleased to report near surface intersections over significant widths were intercepted in hole H13-003A, which returned 4.43 g/t Au over 20.2 metres (5.25g/t Au uncut), including 12.81 g/t Au over 3.8 metres (16.44 g/t Au uncut); and H13-013, which returned 8.32 g/t Au over 6.4 metres, including 13.42 g/t Au over 2.9 metres (see press release dated August 7, 2013, available under the Company's profile on www.sedar.com or on the Company's website at www.sasgoldmines.com).
During the quarter, one surface drill continued to test for the depth extension beneath the West and East pits with approximately 10,700 metres completed at the end of the quarter. Recent drill results highlighted well mineralized intercepts being reported below both the East and West pits. Hole HP13-010 returned 3.06g/t Au over 21.8 metres, including 5.30g/t Au over 8.2 metres, which is situated approximately 75 metres below the bottom of the West Pit. The mineralized zone remains open at depth. Drilling below the East Pit returned strong mineralization in Hole HP13-017 which assayed 3.37 g/t Au over 17.6 metres including 15.60 g/t Au over 2.2 metres, which is situated approximately 200 metres below the bottom of the current East Pit. The mineralized zone remains open at depth (see press release dated August 7, 2013, available under the Company's profile on www.sedar.com or on the Company's website at www.sasgoldmines.com).
Capital Resources
SAS generated cash flow from operations in Q2 2013 of $7.0 million, a decrease of $2.1 million from Q2 2012. The decrease in cash flow from Q2 2012 was mainly due to the decline in the gold price during the quarter, which resulted in a $2.5 million decrease in cash margin from mine operations (1) over Q2 2012.
At June 30, 2013, the Company's working capital was $16.5 million as compared to a working capital of $18.2 million as at December 31, 2012. The decrease in working capital of $1.7 million from December 31, 2012, is primarily the result of a net decrease of $4.2 million in operating working capital due to mark-to-market positions of derivative instruments, offset somewhat by the Company's realignment of mine operating working capital to meet the current mine plan.
At the end of Q2 2013, the Company had cash and cash equivalents of $31.5 million. The Company has access to additional cash resources by way of an undrawn US$10.0 million revolving credit facility.
During the quarter, the price of gold declined significantly to a level which impacted the Company's cash flow and operating results. During the quarter, the Company revised its operating and capital expenditure programs with the objective to maintain a strong financial position. The Company believes that it is able to generate net cash flow at an average gold price of US$1,300 per ounce without any significant reduction or curtailment of its current operating plans. The Company continues to monitor this risk and will revise its operating plans accordingly in order to ensure its near-term and long-term cash flow objectives are met. SAS expects to incur a total of $9.8 million in capital expenditures at the two underground mines, the Holt Mill, and at Taylor (see table below).
| Amounts in thousands of Canadian dollars rounded to nearest million decimal place | Incurred in YTD 2013 | Revised Forecast H2 2013 | Revised FY 2013 Forecast | ||||
| Mine capital and Taylor expenditures in 2013 | |||||||
| Holt | $ | 6,900 | $ | 7,300 | $ | 14,200 | |
| Holloway | 2,100 | 700 | $ | 2,800 | |||
| Holt Mill | 800 | 500 | $ | 1,300 | |||
| $ | 9,800 | $ | 8,500 | $ | 18,300 | ||
| Taylor | 5,400 | 1,300 | $ | 6,700 | |||
| 15,200 | 9,800 | $ | 25,000 | ||||
Qualified Person
Production and ongoing development programs at the Holt, Holloway and Hislop mines, and processing at the Holt Mill, as well as activities at the Taylor Project are being conducted under the supervision of Duncan Middlemiss, P.Eng, the Company's COO and Vice-President of Operations. The exploration programs on the Company's various mineral properties are under the supervision of Doug Cater, P.Geo, the Company's Vice-President of Exploration. Both Messrs. Middlemiss and Cater are qualified persons as defined by National Instrument 43-101, and have reviewed and approved this news release.
Non-GAAP Measures
The Company has included the following non‐GAAP performance measures: adjusted net earnings; operating cash flow per share; net cash flow; average realized price per ounce of gold sold; total cash cost per ounce of gold sold; cash margin from mine operations; cash margin per ounce of gold sold; and mine‐site cost per tonne milled throughout this news release, which do not have standardized meanings prescribed by International Financial Reporting Standards ("IFRS") and are not necessarily comparable to other similarly titled measures of other companies due to potential inconsistencies in the method of calculation. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, the Company and certain investors use this information to evaluate the Company's performance. Refer to the following pages in this news release for a discussion and the reconciliation of these non-GAAP measurements to the Company's Unaudited Condensed Interim Financial Report for Q2 2013.
The Unaudited Balance Sheets, Statements of Operations and Statements of Cash Flows for the Company for the three and six months ended June 30, 2013, can be found at the end of this release.
To review the complete Unaudited Condensed Financial Report for Q2 2013, and the Interim Management's Discussion and Analysis for Q2 2013, please see SAS's SEDAR filings under the Company's profile at www.sedar.com or the Company's website at www.sasgoldmines.com.
| The following abbreviations are used to describe the periods under review throughout this release. | |||
| Abbreviation | Period | Abbreviation | Period |
| FY 2013 | January 1, 2013 - December 31, 2013 | YTD 2012 | January 1, 2012 - June 30, 2012 |
| YTD 2013 | January 1, 2013 - June 30, 2013 | Q4 2012 | October 1, 2012 - December 31, 2012 |
| H2 2013 | July 1, 2013 - December 31, 2013 | Q3 2012 | July 1, 2012 - September 30, 2012 |
| Q4 2013 | October 1, 2013 - December 31, 2013 | Q2 2012 | April 1, 2012 - June 30, 2012 |
| Q3 2013 | July 1, 2013 - September 30, 2013 | Q1 2012 | January 1, 2012 - March 31, 2012 |
| Q2 2013 | April 1, 2013 - June 30, 2013 | Q4 2011 | October 1, 2011 - December 31, 2011 |
| Q1 2013 | January 1, 2013 - March 31, 2013 | Q3 2011 | July 1, 2011 - September 30, 2011 |
| FY 2012 | January 1, 2012 - December 31, 2012 | ||
About SAS
SAS (operating as "SAS Goldmines"), is a gold mining and exploration company with an extensive land package in the Timmins mining district, north-eastern Ontario, which lies within the Abitibi greenstone belt, the most important host of historical gold production in Canada.
SAS owns and operates the Holt, Holloway and Hislop mines, which contribute approximately 100,000 ounces of annual gold production. The Company is also advancing the Taylor Project and is conducting a number of exploration programs across 120km of land straddling the Porcupine-Destor Fault Zone.
FORWARD-LOOKING INFORMATION
This news release contains forward-looking information and forward-looking statements (collectively, "forward-looking information") under applicable securities laws, concerning the Company's business, operations, financial performance, condition and prospects, as well as management's objectives, strategies, beliefs and intentions. Forward-looking information is frequently identified by such words as "may", "will", "plan", "expect", "estimate", "anticipate", "believe", "intend" and similar words referring to future events and results, including in respect of the resumption of positive cash flows for the remainder of 2013; the 2013 targeted level of production from the three operations; the results from the drilling program on the 1004 lens at Taylor and the timing thereof; the level of capital expenditures for the balance of 2013; the extent and objectives of the Company's exploration programs for the balance of 2013; the impact of significant declines in the gold price; and the sufficiency of the Company's cash flow and existing cash resources to finance its capital programs and the further development of its advanced stage exploration projects.
This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied by the forward-looking information. Factors that may cause actual results to vary materially include, but are not limited to, fluctuations in gold prices, unanticipated operational or technical difficulties which could increase the time necessary to complete the development initiatives, escalate operating and/or capital costs and reduce anticipated production levels; uncertainties relating to the interpretation of the geology, continuity, grade and size estimates of the mineral reserves and resources; the Company's dependence on key employees and changes in the availability of qualified personnel; fluctuations in exchange rates; operational hazards and risks, including the inability to insure against all risks; changes in laws and regulations; and changes in general economic conditions. Such forward looking information is based on a number of assumptions, including in respect of the ability to achieve operating cost estimates, the volatility and level of the price of gold including that the gold price will generally remain within a reasonable range of current levels, the accuracy of reserve and resource estimates and the assumptions on which such estimates are based and general business and economic conditions. Should one or more risks and uncertainties materialize or should any assumptions prove incorrect, then actual results could vary materially from those expressed or implied in the forward-looking information. Accordingly, readers are cautioned not to place undue reliance on this forward-looking information. SAS does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws. A further description of the risks and uncertainties facing the Company may also be found in the Company's Annual Information Form available on SEDAR at www.sedar.com.
NON-GAAP MEASURES
Adjusted net earnings (loss)
Adjusted net earnings (loss) are calculated by removing the gains and losses, resulting from the mark-to-market revaluation of the Company's gold-linked liabilities and foreign currency price protection derivative contracts, one-time gains or losses on the disposition of non-core assets, periodic adjustments to the Company's asset retirement obligations, and expenses, asset impairment gains or losses and significant tax adjustments not related to current period's earnings, as detailed in the table below. Adjusted net earnings (loss) does not constitute a measure recognized by IFRS and does not have a standardized meaning defined by IFRS and may not be comparable to information in other gold producers' reports and filings. The Company discloses this measure, which is based on its Financial Reports, to assist in the understanding of the Company's operating results and financial position.
| Amounts in thousands of Canadian dollars, except per share amounts | Q2 2013 | Q1 2013 | Q2 2012 | YTD 2013 | YTD 2012 | ||||||
| Net income (loss) per Financial Reports | $ | (1,093) | $ | 1,039 | $ | 4,357 | $ | (54) | $ | 7,091 | |
| Reversal of unrecognized deferred income tax assets | - | (1,256) | - | (1,256) | - | ||||||
| Mark-to-market loss (gain) on gold-linked liabilities | (1,520) | (191) | 815 | (1,711) | 1,637 | ||||||
| Mark-to-market loss (gain) on foreign currency derivatives | 818 | 1,240 | 777 | 2,058 | (978) | ||||||
| Write-down of investment in joint venture | 374 | - | - | 374 | - | ||||||
| Write-down of mining equipment | 620 | - | - | 620 | - | ||||||
| Impairment loss on available-for-sale investment | - | 500 | - | 500 | - | ||||||
| Tax effect of above items | (73) | (262) | (398) | (335) | (165) | ||||||
| Adjusted net earnings (loss) | $ | (874) | $ | 1,070 | $ | 5,551 | $ | 196 | $ | 7,585 | |
| Weighted average number of shares outstanding (000s) | |||||||||||
| Basic | 368,246 | 368,246 | 368,246 | 368,246 | 368,246 | ||||||
| Diluted | 368,277 | 368,801 | 368,359 | 368,537 | 368,592 | ||||||
| Adjusted net earnings (loss) per share - basic and diluted | $ | 0.00 | $ | 0.00 | $ | 0.02 | $ | 0.00 | $ | 0.02 | |
Total cash cost per ounce of gold sold
Total cash cost per ounce of gold sold is a non-GAAP performance measure and may not be comparable to information in other gold producers' reports and filings. The Company has included this non-GAAP performance measure throughout this document as the Company believes that this generally accepted industry performance measure provides a useful indication of the Company's operational performance. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company's performance and ability to generate cash flow. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The following table provides a reconciliation of total cash costs per ounce of gold sold to production expenses per the Financial Report for Q2 2013:
| Amounts in thousands of Canadian dollars, except where indicated | Q2 2013 | Q1 2013 | Q2 2012 | YTD 2013 | YTD 2012 | ||||||
| Mine site operating costs per Financial Reports | $ | 19,996 | $ | 18,411 | $ | 17,831 | $ | 38,407 | $ | 35,282 | |
| Production royalties per Financial Reports | 3,012 | 3,370 | 3,046 | 6,382 | 5,968 | ||||||
| Adjustments (1) | - | - | - | - | (99) | ||||||
| Total cash costs | $ | 23,008 | $ | 21,781 | $ | 20,877 | $ | 44,789 | $ | 41,151 | |
| Divided by gold ounces sold | 25,060 | 23,009 | 22,495 | 48,069 | 42,820 | ||||||
| Total cash cost per ounce of gold sold (Canadian dollars) | $ | 918 | $ | 947 | $ | 928 | $ | 932 | $ | 961 | |
| Average USD:CAD exchange rate | $ | 1.02 | $ | 1.01 | $ | 1.01 | $ | 1.02 | $ | 1.01 | |
| Total cash cost per ounce of gold sold (US$) | $ | 897 | $ | 939 | $ | 919 | $ | 917 | $ | 956 | |
| Breakdown of total cash cost per ounce of gold sold (US$) | |||||||||||
| Holt Mine | |||||||||||
| Mine cash costs | $ | 636 | $ | 619 | $ | 671 | $ | 628 | $ | 671 | |
| Royalty costs | 155 | 166 | 166 | 160 | 167 | ||||||
| $ | 791 | $ | 785 | $ | 837 | $ | 788 | $ | 838 | ||
| Holloway Mine | |||||||||||
| Mine cash costs | $ | 947 | $ | 977 | $ | 771 | $ | 962 | $ | 852 | |
| Royalty costs | 143 | 209 | 205 | 175 | 207 | ||||||
| $ | 1,090 | $ | 1,186 | $ | 976 | $ | 1,137 | $ | 1,059 | ||
| Hislop Mine | |||||||||||
| Mine cash costs | $ | 987 | $ | 1,139 | $ | 1,020 | $ | 1,052 | $ | 1,095 | |
| Royalty costs | - | - | - | - | - | ||||||
| $ | 987 | $ | 1,139 | $ | 1,020 | $ | 1,052 | $ | 1,095 | ||
| Total | |||||||||||
| Mine cash costs | $ | 780 | $ | 794 | $ | 785 | $ | 786 | $ | 819 | |
| Royalty costs | 117 | 145 | 134 | 131 | 137 | ||||||
| $ | 897 | $ | 939 | $ | 919 | $ | 917 | $ | 956 | ||
Notes:
| (1) | In Q1 2012, the Company accrued a royalty liability of $99 at Holloway which was incurred during the period from August 2011 to December 2011. This amount has been retroactively applied to the calculation of the total cash cost per ounce of gold sold for YTD 2012. |
Mine-site cost per tonne milled
Mine-site cost per tonne milled is a non-GAAP performance measure and may not be comparable to information in other gold producers' reports and filings. As illustrated in the table below, this measure is calculated by adjusting Production Costs, as shown in the statements of operations, for inventory level changes and then dividing by tonnes processed through the mill. Since total cash cost per ounce of gold sold data can be affected by fluctuations in foreign currency exchange rates, Management believes that mine-site cost per tonne milled provides additional information regarding the performance of mining operations and allows Management to monitor operating costs on a more consistent basis as the per tonne milled measure eliminates the cost variability associated with varying production levels. Management also uses this measure to determine the economic viability of mining blocks. As each mining block is evaluated based on the net realizable value of each tonne mined, the estimated revenue on a per tonne basis must be in excess of the mine-site cost per tonne milled in order to be economically viable. Management is aware that this per tonne milled measure is impacted by fluctuations in throughput and thus uses this evaluation tool in conjunction with production costs prepared in accordance with IFRS. This measure supplements production cost information prepared in accordance with IFRS and allows investors to distinguish between changes in production costs resulting from changes in production versus changes in operating performance.
| Amounts in thousands of Canadian dollars, except per tonne amounts | Q2 2013 | Q1 2013 | Q2 2012 | YTD 2013 | YTD 2012 | |||||
| Holt Mine | ||||||||||
| Mine-site costs | $ | 9,270 | $ | 8,563 | $ | 7,508 | $ | 17,833 | $ | 14,671 |
| Inventory adjustments (1) | (421) | 1,017 | (6) | 596 | 605 | |||||
| Mine site operating costs | $ | 8,849 | $ | 9,580 | $ | 7,502 | $ | 18,429 | $ | 15,276 |
| Divided by tonnes of ore milled | 93,081 | 89,985 | 78,429 | 183,066 | 146,366 | |||||
| Mine-site cost per tonne milled | $ | 95 | $ | 106 | $ | 96 | $ | 101 | $ | 104 |
| Holloway Mine | ||||||||||
| Mine-site costs | $ | 5,015 | $ | 5,059 | $ | 4,472 | $ | 10,074 | $ | 9,131 |
| Inventory adjustments (1) | 153 | 320 | (92) | 473 | 189 | |||||
| Mine site operating costs | $ | 5,168 | $ | 5,379 | $ | 4,380 | $ | 10,547 | $ | 9,320 |
| Divided by tonnes of ore milled | 45,642 | 43,252 | 53,169 | 88,894 | 100,320 | |||||
| Mine-site cost per tonne milled | $ | 113 | $ | 124 | $ | 82 | $ | 119 | $ | 93 |
| Hislop Mine | ||||||||||
| Mine-site costs | $ | 5,711 | $ | 4,788 | $ | 5,851 | $ | 10,499 | $ | 11,480 |
| Inventory adjustments (1) | (100) | 537 | 62 | 437 | 229 | |||||
| Mine site operating costs | $ 5,611 | $ | 5,325 | $ | 5,913 | $ | 10,936 | $ | 11,709 | |
| Divided by tonnes of ore milled | 88,093 | 79,771 | 97,183 | 167,864 | 191,843 | |||||
| Mine-site cost per tonne milled | $ | 64 | $ | 67 | $ | 61 | $ | 65 | $ | 61 |
Notes:
| (1) | Inventory adjustment reflects production costs associated with unsold bullion and in-circuit inventory. |
Cash margin from mine operations
Cash margin from mine operations is a non-GAAP measure which may not be comparable to information in other gold producers' reports and filings. It is calculated as the difference between gold sales and production costs (comprised of mine-site operating costs and production royalties) per the Company's Financial Reports. The Company believes it illustrates the performance of the Company's operating mines and enables investors to better understand the Company's performance in comparison to other gold producers who present results on a similar basis.
| Amounts in thousands of Canadian dollars | Q2 2013 | Q1 2013 | Q2 2012 | YTD 2013 | YTD 2012 | |||||||
| Gold sales per Financial Reports | [A] | $ | 36,723 | $ | 38,190 | $ | 37,073 | $ | 74,913 | $ | 71,369 | |
| Mine site operating costs per Financial Reports | 19,996 | 18,411 | 17,831 | 38,407 | 35,282 | |||||||
| Production royalties per Financial Reports | 3,012 | 3,370 | 3,046 | 6,382 | 5,968 | |||||||
| [B] | 23,008 | 21,781 | 20,877 | 44,789 | 41,250 | |||||||
| Cash margin from mine operations | [A] - [B] | $ | 13,715 | $ | 16,409 | $ | 16,196 | $ | 30,124 | $ | 30,119 | |
| Breakdown of cash margin from mine operations by mines: | ||||||||||||
| Holt Mine | $ | 9,341 | $ | 11,887 | $ | 8,886 | $ | 21,228 | $ | 17,940 | ||
| Holloway Mine | 1,795 | 2,391 | 3,805 | 4,186 | 6,297 | |||||||
| Hislop Mine | 2,579 | 2,131 | 3,505 | 4,710 | 5,882 | |||||||
| $ | 13,715 | $ | 16,409 | $ | 16,196 | $ | 30,124 | $ | 30,119 | |||
Average realized price per ounce of gold sold
Average realized price per ounce of gold sold is a non-GAAP measure and is calculated by dividing gold sales proceeds received by the Company for the relevant period by the ounces of gold sold. It may not be comparable to information in other gold producers' reports and filings.
| Amounts in thousands of Canadian dollars, except where indicated | Q2 2013 | Q1 2013 | Q2 2012 | YTD 2013 | YTD 2012 | |||||||
| Gold sales per Financial Reports | $ | 36,723 | $ | 38,190 | $ | 37,073 | $ | 74,913 | $ | 71,369 | ||
| Realized loss on foreign currency derivative cash flow hedges | (172) | - | - | (172) | - | |||||||
| $ | 36,551 | $ | 38,190 | $ | 37,073 | $ | 74,741 | $ | 71,369 | |||
| Average USD:CAD exchange rate on gold sales | 1.02 | 1.02 | 1.02 | 1.02 | 1.01 | |||||||
| $ | 35,784 | $ | 37,546 | $ | 36,443 | $ | 73,330 | $ | 70,890 | |||
| Divided by gold ounces sold | 25,060 | 23,009 | 22,495 | 48,069 | 42,820 | |||||||
| Average realized price per ounce of gold sold (US$) | $ | 1,428 | $ | 1,632 | $ | 1,620 | $ | 1,526 | $ | 1,656 | ||
Cash margin per ounce of gold sold
Cash margin per ounce of gold sold is a non-GAAP measure, and is calculated by subtracting the total cash cost per ounce of gold sold from the average realized price per ounce of gold sold. It may not be comparable to information in other gold producers' reports and filings.
| Amounts in United Sates dollars | Q2 2013 | Q1 2013 | Q2 2012 | YTD 2013 | YTD 2012 | ||||||||
| Per ounce of gold sold: | |||||||||||||
| Average realized price per ounce of gold sold | [A] | $ | 1,428 | $ | 1,632 | $ | 1,620 | $ | 1,526 | $ | 1,656 | ||
| Total cash cost per ounce of gold sold | [B] | $ | 897 | $ | 939 | $ | 919 | $ | 917 | $ | 956 | ||
| Cash margin per ounce of gold sold | [A] - [B] | $ | 531 | $ | 693 | $ | 701 | $ | 609 | $ | 700 | ||
Net cash flow
Net cash flow is a non-GAAP measure and is calculated by taking cash flow from operating activities less cash used in investing activities as reported in the Company's Financial Reports. It may not be comparable to information in other gold producers' reports and filings.
| Amounts in thousands of Canadian dollars | Q2 2013 | Q1 2013 | Q2 2012 | YTD 2013 | YTD 2012 | |||||||
| Cash flow from operating activities per Financial Reports | $ | 6,968 | $ | 13,780 | $ | 9,113 | $ | 20,748 | $ | 17,369 | ||
| Less: | ||||||||||||
| Cash used in investing activities per Financial Reports | 7,315 | 9,989 | 8,099 | 17,304 | 16,866 | |||||||
| $ | (347) | $ | 3,791 | $ | 1,014 | $ | 3,444 | $ | 503 | |||
Operating cash flow per share
Operating cash flow per share is a non-GAAP measure and is calculated by dividing cash flow from operating activities in the Company's Financial Reports by the weighted average number of shares outstanding for each period. It may not be comparable to information in other gold producers' reports and filings.
| Amounts in thousands of Canadian dollars, except per share amounts | Q2 2013 | Q1 2013 | Q2 2012 | YTD 2013 | YTD 2012 | |||||
| Cash flow from operating activities per Financial Reports | $ | 6,968 | $ | 13,780 | $ | 9,113 | $ | 20,748 | $ | 17,369 |
| Weighted average number of shares outstanding (000s) | 368,246 | 368,246 | 368,246 | 368,246 | 368,246 | |||||
| Operating cash flow per share | $ | 0.02 | $ | 0.04 | $ | 0.02 | $ | 0.06 | $ | 0.05 |
Operating and Financial Statistics - Holt Mine
| Amounts in thousands of Canadian dollars, except where indicated | Q2 2013 | Q1 2013 | Q4 2012 | Q3 2012 | Q2 2012 | Q1 2012 | Q4 2011 | Q3 2011 | YTD 2013 | YTD 2012 | |||||||||||
| Tonnes milled | 93,081 | 89,985 | 89,901 | 80,219 | 78,429 | 67,937 | 67,778 | 66,556 | 183,066 | 146,366 | |||||||||||
| Head grade (g/t Au) | 4.83 | 5.40 | 5.51 | 5.40 | 4.71 | 5.36 | 5.57 | 5.01 | 5.11 | 5.01 | |||||||||||
| Average mill recovery | 94.9% | 94.8% | 94.7% | 94.4% | 94.2% | 94.1% | 94.1% | 93.4% | 94.8% | 94.2% | |||||||||||
| Gold produced (ounces) | 13,706 | 14,806 | 15,082 | 13,145 | 11,193 | 11,025 | 11,421 | 10,012 | 28,512 | 22,218 | |||||||||||
| Commercial gold production sold (ounces) (1) | 14,230 | 13,715 | 15,043 | 12,373 | 11,073 | 10,674 | 12,175 | 8,870 | 27,945 | 21,747 | |||||||||||
| Gold sales revenue (1) | $ | 20,865 | $ | 22,750 | $ | 25,584 | $ | 20,000 | $ | 18,250 | $ | 18,015 | $ | 21,060 | $ | 15,449 | $ | 43,615 | $ | 36,265 | |
| Cash margin from mine operations (2) | $ | 9,341 | $ | 11,887 | $ | 14,538 | $ | 9,250 | $ | 8,886 | $ | 9,054 | $ | 12,054 | $ | 6,625 | $ | 21,228 | $ | 17,940 | |
| Mine-site cost per tonne milled (2) | $ | 95 | $ | 106 | $ | 93 | $ | 112 | $ | 96 | $ | 114 | $ | 95 | $ | 106 | $ | 101 | $ | 104 | |
| Total cash cost per ounce of gold sold (US dollars)(2): | |||||||||||||||||||||
| Mine cash costs | $ | 636 | $ | 619 | $ | 573 | $ | 708 | $ | 671 | $ | 670 | $ | 556 | $ | 833 | $ | 628 | $ | 671 | |
| Royalty costs | 155 | 166 | 168 | 165 | 166 | 168 | 166 | 181 | 160 | 167 | |||||||||||
| Total cash cost per ounce of gold sold (2) | 791 | 785 | 741 | 873 | 837 | 838 | 722 | 1,014 | 788 | 838 | |||||||||||
| Depreciation and depletion | 183 | 196 | 200 | 186 | 161 | 145 | 129 | 134 | 189 | 153 | |||||||||||
| Total production cost per ounce of gold sold (US dollars) | $ | 974 | $ | 981 | $ | 941 | $ | 1,059 | $ | 998 | $ | 983 | $ | 851 | $ | 1,148 | $ | 977 | $ | 991 | |
| Average USD:CAD exchange rate | 1.02 | 1.01 | 0.99 | 0.99 | 1.01 | 1.00 | 1.02 | 0.98 | 1.02 | 1.01 | |||||||||||
| Capital expenditures | $ | 3,487 | $ | 3,383 | $ | 4,536 | $ | 4,990 | $ | 5,036 | $ | 3,177 | $ | 4,250 | $ | 1,841 | $ | 6,870 | $ | 8,213 | |
Notes:
| (1) | Holt commenced commercial production on April 1, 2011. |
| (2) | Total cash cost per ounce of gold sold, mine-site cost per tonne milled and cash margin from mine operations are non-GAAP measures and are not necessarily comparable to similarly titled measures of other companies due to potential inconsistencies in the method of calculation (see "non-GAAP Measures" herein for an explanation and reconciliation of non-GAAP measurements). |
Operating and Financial Statistics - Holloway Mine
| Amounts in thousands of Canadian dollars, except where indicated | Q2 2013 | Q1 2013 | Q4 2012 | Q3 2012 | Q2 2012 | Q1 2012 | Q4 2011 | Q3 2011 | YTD 2013 | YTD 2012 | ||||||||||
| Tonnes milled | 45,642 | 43,252 | 46,606 | 44,546 | 53,169 | 47,151 | 56,225 | 49,437 | 88,894 | 100,320 | ||||||||||
| Head grade (g/t Au) | 4.32 | 4.04 | 3.90 | 4.15 | 3.80 | 3.77 | 4.03 | 3.71 | 4.19 | 3.78 | ||||||||||
| Average mill recovery | 92.6% | 91.5% | 89.7% | 91.0% | 91.2% | 88.6% | 84.1% | 85.2% | 92.1% | 90.0% | ||||||||||
| Gold produced (ounces) | 5,874 | 5,140 | 5,240 | 5,408 | 5,923 | 5,058 | 6,126 | 5,026 | 11,014 | 10,981 | ||||||||||
| Commercial gold production sold (ounces) (1) | 5,175 | 5,126 | 4,981 | 5,749 | 5,744 | 4,907 | 6,208 | 5,130 | 10,301 | 10,651 | ||||||||||
| Gold sales revenue | $ | 7,568 | $ | 8,521 | $ | 8,473 | $ | 9,267 | $ | 9,467 | $ | 8,275 | $ | 10,750 | $ | 8,828 | $ | 16,089 | $ | 17,742 |
| Cash margin from mine operations (2) | $ | 1,795 | $ | 2,391 | $ | 3,262 | $ | 3,835 | $ | 3,805 | $ | 2,492 | $ | 4,116 | $ | 2,931 | $ | 4,186 | $ | 6,297 |
| Mine-site cost per tonne milled (2) | $ | 113 | $ | 124 | $ | 94 | $ | 92 | $ | 82 | $ | 105 | $ | 93 | $ | 98 | $ | 119 | $ | 93 |
| Total cash cost per ounce of gold sold (US dollars) (2): | ||||||||||||||||||||
| Mine cash costs | $ | 947 | $ | 977 | $ | 834 | $ | 746 | $ | 771 | $ | 948 | $ | 853 | $ | 960 | $ | 962 | $ | 852 |
| Royalty costs (3) | 143 | 209 | 221 | 204 | 205 | 209 | 203 | 218 | 175 | 207 | ||||||||||
| Total cash cost per ounce of gold sold (2) | 1,090 | 1,186 | 1,055 | 950 | 976 | 1,157 | 1,056 | 1,178 | 1,137 | 1,059 | ||||||||||
| Depreciation and depletion | 406 | 415 | 399 | 410 | 376 | 368 | 368 | 540 | 410 | 372 | ||||||||||
| Total production cost per ounce of gold sold (US dollars) | $ | 1,496 | $ | 1,601 | $ | 1,454 | $ | 1,360 | $ | 1,352 | $ | 1,525 | $ | 1,424 | $ | 1,718 | $ | 1,547 | $ | 1,431 |
| Average USD:CAD exchange rate | 1.02 | 1.01 | 0.99 | 0.99 | 1.01 | 1.00 | 1.02 | 0.98 | 1.02 | 1.01 | ||||||||||
| Capital expenditures | $ | 1,189 | $ | 912 | $ | 1,443 | $ | 1,794 | $ | 2,539 | $ | 4,342 | $ | 3,666 | $ | 2,938 | $ | 2,101 | $ | 6,881 |
Notes:
| (1) | Holloway commenced production in October 2009. |
| (2) | Total cash cost per ounce of gold sold, mine-site cost per tonne milled and cash margin from mine operations, are non-GAAP measures and are not necessarily comparable to similarly titled measures of other companies due to potential inconsistencies in the method of calculation (see "non-GAAP Measures" herein for an explanation and reconciliation of non-GAAP measurements). |
| (3) | In Q1 2012, the Company accrued a royalty liability of $99 at Holloway, which was incurred during the period from August 2011 to December 2011. This amount has been retroactively applied to the calculation of the total cash cost per ounce of gold sold for each of these quarters, respectively. |
Operating and Financial Statistics - Hislop Mine
| Amounts in thousands of Canadian dollars, except where indicated | Q2 2013 | Q1 2013 | Q4 2012 | Q3 2012 | Q2 2012 | Q1 2012 | Q4 2011 | Q3 2011 | YTD 2013 | YTD 2012 | ||||||||||
| Overburden stripped (m3) | 64,807 | - | - | (32,205) | 29,236 | 4,212 | 103,346 | 300,249 | 64,807 | 33,448 | ||||||||||
| Tonnes mined (ore) | 105,900 | 82,361 | 101,617 | 99,287 | 76,764 | 118,918 | 107,827 | 109,457 | 188,261 | 195,682 | ||||||||||
| (waste) | 312,705 | 267,906 | 453,629 | 513,988 | 536,015 | 680,221 | 599,330 | 738,054 | 580,611 | 1,216,236 | ||||||||||
| 418,605 | 350,267 | 555,246 | 613,275 | 612,779 | 799,139 | 707,157 | 847,511 | 768,872 | 1,411,918 | |||||||||||
| Waste-to-Ore Ratio | 3.0 | 3.3 | 4.5 | 5.2 | 7.0 | 5.7 | 5.6 | 6.7 | 3.1 | 6.2 | ||||||||||
| Tonnes milled | 88,093 | 79,771 | 95,516 | 102,191 | 97,183 | 94,660 | 92,794 | 107,741 | 167,864 | 191,843 | ||||||||||
| Head grade (g/t Au) | 2.43 | 2.14 | 2.22 | 2.53 | 2.21 | 1.88 | 1.94 | 1.68 | 2.29 | 2.04 | ||||||||||
| Average mill recovery | 84.0% | 82.1% | 80.8% | 86.5% | 85.6% | 86.4% | 83.0% | 85.4% | 83.2% | 85.9% | ||||||||||
| Gold produced (ounces) | 5,773 | 4,515 | 5,507 | 7,189 | 5,899 | 4,935 | 4,803 | 4,980 | 10,288 | 10,834 | ||||||||||
| Commercial gold production sold (ounces) (1) | 5,655 | 4,168 | 6,026 | 7,075 | 5,678 | 4,744 | 4,985 | 5,260 | 9,823 | 10,422 | ||||||||||
| Gold sales revenue | $ | 8,290 | $ | 6,919 | $ | 10,275 | $ | 11,423 | $ | 9,356 | $ | 8,006 | $ | 8,625 | $ | 9,068 | $ | 15,209 | $ | 17,362 |
| Cash margin from mine operations (2) | $ | 2,579 | $ | 2,131 | $ | 3,700 | $ | 5,165 | $ | 3,505 | $ | 2,377 | $ | 2,528 | $ | 2,432 | $ | 4,710 | $ | 5,882 |
| Mine-site cost per tonne milled (2) | $ | 64 | $ | 67 | $ | 65 | $ | 62 | $ | 61 | $ | 61 | $ | 60 | $ | 59 | $ | 65 | $ | 61 |
| Total cash cost per ounce of gold sold (2)(3) | $ | 987 | $ | 1,139 | $ | 1,100 | $ | 889 | $ | 1,020 | $ | 1,185 | $ | 1,196 | $ | 1,286 | $ | 1,052 | $ | 1,095 |
| Depreciation and depletion | 735 | 767 | 332 | 234 | 238 | 186 | 177 | 150 | 749 | 215 | ||||||||||
| Total production cost per ounce of gold sold (US dollars) | $ | 1,722 | $ | 1,906 | $ | 1,432 | $ | 1,123 | $ | 1,258 | $ | 1,371 | $ | 1,373 | $ | 1,436 | $ | 1,801 | $ | 1,310 |
| Average USD:CAD exchange rate | 1.02 | 1.01 | 0.99 | 0.99 | 1.01 | 1.00 | 1.02 | 0.98 | 1.02 | 1.01 | ||||||||||
| Capital expenditures | $ | - | $ | - | $ | (39) | $ | 390 | $ | 970 | $ | 463 | $ | 701 | $ | 2,822 | $ | - | $ | 1,433 |
Notes:
| (1) | Hislop commenced commercial production on July 1, 2010. |
| (2) | Total cash cost per ounce of gold sold, mine-site cost per tonne milled and cash margin from mine operations are non-GAAP measures and are not necessarily comparable to similarly titled measures of other companies due to potential inconsistencies in the method of calculation (see "non-GAAP Measures" herein for an explanation and reconciliation of non-GAAP measurements). |
| (3) | Hislop is subject to a 4% net smelter return royalty ("NSR") which includes a minimum Advance royalty payment obligation (see "Gold-linked Liabilities" in Q2 2013 MD&A). |
Statements of Operations (unaudited)
St Andrew Goldfields Ltd.
Expressed in thousands of Canadian dollars except per share information
| Three months ended June 30, | Six months ended June 30, | |||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||
| Gold sales | $ | 36,723 | $ | 37,073 | $ | 74,913 | $ | 71,369 | ||
| Operating costs and expenses: | ||||||||||
| Mine site operating | 19,996 | 17,831 | 38,407 | 35,282 | ||||||
| Production royalty | 3,012 | 3,046 | 6,382 | 5,968 | ||||||
| Site maintenance | 39 | 129 | 160 | 277 | ||||||
| Exploration | 2,599 | 1,362 | 5,110 | 3,178 | ||||||
| Corporate administration | 1,688 | 1,321 | 3,953 | 3,411 | ||||||
| Depreciation and depletion | 9,304 | 5,515 | 17,588 | 9,921 | ||||||
| Write-down of investment in joint venture | 374 | - | 374 | - | ||||||
| Write-down of mining equipment | 620 | - | 620 | - | ||||||
| 37,632 | 29,204 | 72,594 | 58,037 | |||||||
| Operating income (loss) | (909) | 7,869 | 2,319 | 13,332 | ||||||
| Finance costs | 497 | 654 | 1,001 | 1,623 | ||||||
| Mark-to-market (gain) loss on gold-linked liabilities | (1,520) | 815 | (1,711) | 1,637 | ||||||
| Mark-to-market (gain) loss on foreign currency derivatives | 818 | 777 | 2,058 | (978) | ||||||
| Foreign exchange loss | 311 | 618 | 315 | 876 | ||||||
| Impairment loss on available-for-sale investments | - | - | 500 | - | ||||||
| Finance income and other | (78) | (48) | (155) | (86) | ||||||
| 28 | 2,816 | 2,008 | 3,072 | |||||||
| Income (loss) before taxes | (937) | 5,053 | 311 | 10,260 | ||||||
| Deferred taxes | 156 | 696 | 365 | 3,169 | ||||||
| Net income (loss) for the period | $ | (1,093) | $ | 4,357 | $ | (54) | $ | 7,091 | ||
| Other comprehensive income (loss) | ||||||||||
| Unrealized losses on available-for-sale investments, net of tax of nil for all periods | (36) | (266) | (131) | (532) | ||||||
| Reclassification adjustment for impairment loss on available- for-sale investments | - | - | 500 | - | ||||||
| Unrealized loss on derivatives designated as cash flow hedges, net of tax $392, $71, $546, $71 | (1,176) | (214) | (1,639) | (214) | ||||||
| (1,212) | (480) | (1,270) | (746) | |||||||
| Comprehensive income (loss) for the period | $ | (2,305) | $ | 3,877 | $ | (1,324) | $ | 6,345 | ||
| Basic and diluted income (loss) per share attributable to shareholders | $ | 0.00 | $ | 0.01 | $ | 0.00 | $ | 0.02 | ||
| Weighted average number of shares outstanding (000's) | ||||||||||
| Basic | 368,246 | 368,246 | 368,246 | 368,246 | ||||||
| Diluted | 368,277 | 368,359 | 368,537 | 368,592 | ||||||
Statements of Cash Flows (unaudited)
St Andrew Goldfields Ltd.
Expressed in thousands of Canadian dollars
| Three months ended June 30, | Six months ended June 30, | ||||||||||
| 2013 | 2012 | 2013 | 2012 | ||||||||
| Cash provided by (used in) operating activities: | |||||||||||
| Net Income (loss) for the period | $ | (1,093) | $ | 4,357 | $ | (54) | $ | 7,091 | |||
| Items not affecting cash: | |||||||||||
| Deferred taxes | 156 | 696 | 365 | 3,169 | |||||||
| Mark-to-market loss (gain) on gold-linked liabilities | (1,520) | 815 | (1,711) | 1,637 | |||||||
| Non-cash interest | 358 | 548 | 724 | 1,501 | |||||||
| Mark-to-market loss (gain) on foreign currency derivatives | 818 | 777 | 2,058 | (978) | |||||||
| Depreciation and depletion | 9,304 | 5,515 | 17,588 | 9,921 | |||||||
| Write-down of investment in joint venture | 374 | - | 374 | - | |||||||
| Write-down of mining equipment | 620 | - | 620 | - | |||||||
| Impairment loss on available-for-sale investments | - | - | 500 | - | |||||||
| Share-based payments | 263 | 287 | 586 | 476 | |||||||
| Net change in non-cash operating working capital and other | (2,197) | (3,789) | (61) | (5,355) | |||||||
| Interest paid | (115) | (93) | (241) | (93) | |||||||
| 6,968 | 9,113 | 20,748 | 17,369 | ||||||||
| Cash used in (provided by) investing activities: | |||||||||||
| Additions to exploration and evaluation assets | 1,152 | 614 | 5,162 | 658 | |||||||
| Mine development expenditures | 3,707 | 5,794 | 6,694 | 12,286 | |||||||
| Additions to plant and equipment | 1,404 | 3,161 | 3,637 | 4,795 | |||||||
| Amounts payable on capital additions | 1,013 | 134 | 1,429 | 772 | |||||||
| Reclamation costs and other | 16 | 23 | 359 | 40 | |||||||
| Cash collateralized for banking facilities | 23 | (1,627) | 23 | (1,685) | |||||||
| 7,315 | 8,099 | 17,304 | 16,866 | ||||||||
| Cash provided by (used in) financing activities: | |||||||||||
| Advance royalty payments | (464) | (507) | (972) | (1,011) | |||||||
| Capital lease payments | (186) | (11) | (263) | (22) | |||||||
| Repayment of term credit facility | - | - | (2,032) | - | |||||||
| Proceeds from term credit facility | - | 14,975 | - | 14,975 | |||||||
| Bank facility transaction costs | - | (644) | - | (644) | |||||||
| Repayment of Gold Notes | - | (11,102) | - | (14,775) | |||||||
| (650) | 2,711 | (3,267) | (1,477) | ||||||||
| Effects of exchange rate changes on cash and cash equivalents | 394 | 297 | 667 | 297 | |||||||
| Increase (decrease) in cash and cash equivalents | (603) | 4,022 | 844 | (677) | |||||||
| Cash and cash equivalents, beginning of period | 32,103 | 12,918 | 30,656 | 17,617 | |||||||
| Cash and cash equivalents, end of period | $ | 31,500 | $ | 16,940 | $ | 31,500 | $ | 16,940 | |||
Balance Sheets (unaudited)
St Andrew Goldfields Ltd.
Expressed in thousands of Canadian dollars
| June 30, 2013 | December 31, 2012 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 31,500 | $ | 30,656 | |||
| Accounts receivable | 963 | 4,475 | |||||
| Inventories | 11,038 | 8,568 | |||||
| Derivative assets | - | 725 | |||||
| Prepayments and other assets | 152 | 237 | |||||
| 43,653 | 44,661 | ||||||
| Exploration and evaluation assets | 36,521 | 31,382 | |||||
| Producing properties | 57,544 | 64,363 | |||||
| Plant and equipment | 51,284 | 50,537 | |||||
| Reclamation deposits | 8,339 | 8,307 | |||||
| Restricted cash | 1,718 | 1,695 | |||||
| Deferred tax assets | 19,399 | 18,064 | |||||
| Investment in joint venture | - | 374 | |||||
| Other assets | 257 | 365 | |||||
| $ | 218,715 | $ | 219,748 | ||||
| Liabilities and Shareholders' Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable and other liabilities | $ | 11,882 | $ | 15,296 | |||
| Employee-related liabilities | 4,633 | 4,613 | |||||
| Provisions | 777 | 669 | |||||
| Derivative liabilities | 3,518 | - | |||||
| Current portion of long-term debt | 5,623 | 5,822 | |||||
| Current portion of capital lease obligations | 760 | 51 | |||||
| 27,193 | 26,451 | ||||||
| Long-term debt | 9,331 | 12,759 | |||||
| Capital lease obligations | 1,397 | 137 | |||||
| Asset retirement obligations | 11,720 | 11,743 | |||||
| Deferred tax liabilities | 1,943 | 721 | |||||
| 51,584 | 51,811 | ||||||
| Shareholders' equity: | |||||||
| Share capital | 98,556 | 98,556 | |||||
| Contributed surplus | 20,317 | 19,892 | |||||
| Stock options | 3,837 | 3,676 | |||||
| Retained earnings | 45,674 | 45,796 | |||||
| Accumulated other comprehensive income (loss) | (1,253) | 17 | |||||
| 167,131 | 167,937 | ||||||
| $ | 218,715 | $ | 219,748 | ||||
SOURCE St Andrew Goldfields Ltd.
Contact
For further information about St Andrew Goldfields Ltd., please contact:
Tel: 1-800-463-5139 or (416) 815-9855; Fax: (416) 815-9437; Website: www.sasgoldmines.com
Suzette N Ramcharan
Manager, Investor Relations
Email: sramcharan@sasgoldmines.com
Jacques Perron
President & CEO
Email: jperron@sasgoldmines.com
Ben Au
CFO, VP Finance & Administration
Email: bau@sasgoldmines.com