Golden Band Resources reports results for the fourth quarter and year ended April 30, 2013
TSX.V: GBN | OTCQX: GBRIF
SASKATOON, SK, Aug. 28, 2013 /CNW/ - Golden Band Resources Inc. ("Golden Band" or the "Company") (TSXV: GBN; OTCQX: GBRIF) today reported results for the fourth quarter 2013 and year ended April 30, 2013.
The Company incurred a net loss of $13,136,216 in Q4 2013 compared to a loss of $5,327,462 in Q4 2012. The decrease in income is due to the lower production in Q4 2013 from Q4 2012, which, in addition, was weakened by increase in cash cost per ounce of gold sold. For the year ended April 30, 2013, the Company incurred a net loss of $26,850,868 in 2013 compared to a loss of $6,424,093 in 2012. The decrease in income is due to the lower production of gold, which, in addition, was weakened by increase in cash cost per ounce of gold sold.
A summary of financial results is presented below . All dollar amounts presented are Canadian dollars, unless otherwise specified.
SUMMARY QUARTERLY INFORMATION
| CDN $ | Q4 2013 | Q3 2013 | Q2 2013 | Q1 2013 | Q4 2012 | Q3 2012 | Q2 2012 | Q1 2012 |
| Gold ounces sold | 3,532 | 3,882 | 7,920 | 7,929 | 8,872 | 9,969 | 11,950 | 10,031 |
| Revenues ($000's) | $ 5,726 | $ 6,460 | $12,746 | $12,733 | $14,966 | $17,163 | $20,757 | $15,028 |
| Cash cost of sales ($000's) | $10,476 | $10,975 | $12,509 | $11,026 | $14,269 | $9,850 | $10,756 | $9,039 |
| Net income (loss) ($000's) | $(13,136) | $(7,381) | $(2,754) | $(3,580) | $(5,327) | $(81) | $289 | $(1,305) |
| Net loss per share 1 | $(0.04) | $(0.03) | $(0.01) | $(0.01) | $(0.02) | $(0.00)2 | $(0.00)2 | $(0.00)2 |
| Cash from (used in) operations ($000's) | $2,013 | $1,418 | $(1,460) | $165 | $6,075 | $6,533 | $8,703 | $11,905 |
| Total cash costs per ounce of gold sold 3 | $2,966 | $2,827 | $1,579 | $1,391 | $1,608 | $988 | $900 | $901 |
| Average realized gold price/ounce | $1,612 | $1,656 | $1,601 | $1,599 | $1,676 | $1,711 | $1,731 | $1,491 |
- All per share amounts are calculated on a weighted average, basic and fully diluted basis.
- Per share amount is negligible and has been recorded as nil.
- This is a non-IFRS measure. See section regarding non-IFRS measures in the Company's MD&A for the year ended April 30, 2013
During Q4 2013, the Company sold 3,532 gold ounces at an average realized gold price of $1,612 per ounce and generated $5,726,324 of revenue. In Q4 2012 the Company sold 8,872 gold ounces at an average realized gold price of $1,676 per ounce and generated $14,965,832 of revenue.
The Company incurred a net loss of $13,136,216 in Q4 2013 compared to a loss of $5,327,462 in Q4 2012. The decrease in income is due to the lower production in Q4 2013 from Q4 2012, which, in addition, was weakened by increase in cash cost per ounce of gold sold. The lower production resulted in a decrease in sales from 8,872 ounces in Q4 2012 to 3,532 in Q4 2013.
HIGHLIGHTS FOR 2013
- Gold sales for the year were 23,263 ounces at an average price of $1,612, for revenue of $37,665,266.
- Cash flow from operations was $2,136,325.
- The Jolu mill processed 110,326 tonnes of ore at an average grade of 6.55 g/t gold.
- Production from underground operations at Roy Lloyd mine produced a combined total (high and low grade) of 54,636 tonnes of ore at an average grade of 8.09 g/t gold.
- Production from open pit operations at Komis mine produced a combined total (high and low grade) of 38,770 tonnes of ore at an average grade of 2.44 g/t gold.
- More efficient stoping methods at Roy Lloyd underground mine to improve grade and reduce dilution continued.
- Continued strong safety performance. Subsequent to the year end the Roy Lloyd operation reported 365 days non lost time accidents.
- No reportable environmental spills.
SUMMARY ANNUAL INFORMATION
| Year ended April 30, | ||
| 2013 | 2012 | |
| Revenue | $37,665,266 | $67,913,921 |
| Net Loss | $(26,850,868) | $(6,424,093) |
| Net Loss per Share (Basic and Diluted) | $(0.09) | $(0.02) |
| Total Assets | $88,728,950 | $89,867,465 |
| Total Liabilities | $53,758,577 | $28,161,044 |
| Working Capital (Deficit) | $(13,364,243) | $(15,004,133) |
For year ended April 30, 2013, the Company sold 23,263 gold ounces at an average realized gold price of $1,612, for revenue of $37,665,266. For the year ended 2012, the Company sold 40,822 ounces at an average price of $1,655, for revenue of $67,913,921. The Company incurred a net loss of $26,850,868 in 2013 compared to a loss of $6,424,093 in 2012. The decrease in income is due to the lower production of gold, which, in addition, was weakened by increase in cash cost per ounce of gold sold.
Cost savings have been initiated through the Company with the intent to return to full production as soon as feasible. From a sustainable production platform the Company intends to resume its efforts towards growth and expansion from its extensive property portfolio.
For full details of the Company's financial statements and management's discussion and analysis for the fourth quarter and year ended April 30, 2013, please see the financial reports posted on SEDAR at www.sedar.com.
The Company also reports that the Company and its insurer received a statement of claim in respect of a subrogated action against the Company commenced by Procon Mining and Tunnelling Ltd.'s ("Procon") insurer, in the name of Procon, with respect to an insurance loss in excess of $1,000,000 due to fire damage to Procon's equipment which occurred in 2010. Procon and the Company have directors in common. At this point, the outcome of the claim cannot be reliably determined.
About Golden Band
Golden Band Resources Inc. is a gold producer operating in the La Ronge Gold Belt in northern Saskatchewan and is listed on the TSX Venture Exchange in Canada under the symbol GBN and traded in the United States on the OTCQX under the symbol GBRIF. Commercial production was declared on April 1, 2011. The Company has been actively exploring the La Ronge Gold Belt since 1994 and has assembled a land package of 870 km2, including 13 known gold deposits and four former producing mines, being Jolu, Decade, Star Lake and Komis. The Company plans to undertake aggressive drill programs throughout the La Ronge Gold Project with the goal of significantly expanding the existing NI 43-101 gold resources that have been identified to date.
On behalf of the Board of Directors of Golden Band Resources Inc.,
"Paul Saxton"
Paul Saxton, CEO
Caution Regarding Forward-Looking Information and Statements
This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding the restructuring of operations, estimates and costs of production, and other future plans, objectives or expectations of Golden Band Resources Inc. (Company) are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's plans or expectations include risks relating to the actual results of operations, current exploration activities, fluctuating gold prices, possibility of equipment breakdowns and delays, cost overruns, general economic, market or business conditions, regulatory changes, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by the Company. The Company makes all reasonable efforts to update its corporate information on a timely basis.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Golden Band Resources Inc.
Contact
Investor Relations: 604-682-6852
Email: info@goldenbandresources.com
www.goldenbandresources.com