Brigus Gold Reports Operating Income of $7.8 million for 2010 and Increasing Gold Production in 2011
Brigus Gold Corp. ('Brigus? or the 'Company?) (TSX: BRD) (NYSE Amex:
BRD) reported operating income of $7.8 million for the year ended
December 31, 2010 compared to $6.7 million for the same period in 2009.
In the first full year of production at the Company′s Black Fox Mine
('Black Fox?) in the Timmins Mining District, Ontario, the Company
produced 67,499 ounces of gold in 2010, a 29% increase over 52,152
ounces produced in 2009. Black Fox commenced commercial production in
May 2009.
(All dollar amounts in this news release are in U.S. dollars unless
otherwise noted.)
Among the 2010 and year to date 2011 highlights, the Company:
Completed the merger of Apollo Gold Corporation ('Apollo?) and Linear
Gold Corp. ('Linear?) to form Brigus on June 25, 2010.
Sold 69,922 ounces of gold in 2010, a 51% increase over 46,016 ounces
sold in 2009.
Reported total cash costs per ounce of gold sold in 2010 of $589, a
slight increase over $567 per ounce in 2009.
Reported cash and restricted cash at December 31, 2010 of $22.8
million compared to $6.7 million at December 31, 2009. Cash and
restricted cash total approximately $35 million as at March 31, 2011.
Raised $70.0 million in net proceeds from equity financings during the
year and sold a future gold stream to Sandstorm Resources Ltd. for
$56.3 million, with the proceeds used to reduce the Black Fox project
facility debt ('Project Facility?) and to unwind gold forward sales
contracts.
Eliminated all gold forward sales contracts making Brigus hedge free
with no gold derivative positions and subject only to a gold stream
agreement sale.
Strengthened the balance sheet by reducing the Project Facility during
2010 from $70.0 million down to $22.0 million as at December 31, 2010.
Issued $50.0 million of senior unsecured convertible debentures on
March 23, 2011 and eliminated the Project Facility.
Commenced the development of the Black Fox underground mine in the
second quarter of 2010 ('Q2 2010?), including the construction of a
new ramp from the 235-metre ('m?) level to the surface and a new
ventilation and services raise, both of which were completed in the
first quarter of 2011 ('Q1 2011?).
Extended the known strike length of the Contact Zone, at the Black Fox
Complex, from 400 m to 1,200 m by completing 106 drill holes
comprising of a total of 43,000 m in 2010 and including January 1,
2011 to March 11, 2011.
Commenting on the results, Wade K. Dawe, Chairman, Chief Executive
Officer and President of Brigus, said, '2010 was a transformational year
for our company. Following the merger that launched Brigus at the end of
June last year, we have completed underground development and prepared
for Phase 2 open pit production at our Black Fox Mine while also
rebuilding our balance sheet and eliminating the gold hedge book. With
these achievements, we are now well positioned to increase gold
production quarter-over-quarter this year and expect to reach a steady
state production level of over 100,000 ounces per year in the third
quarter of 2011, while achieving profitability and cash flow in 2011.?
Operational Highlights
Black Fox Production and Sales Highlights
| Q4 2010 | Q4 2009 | Year Ended | Year Ended | |||||
Ore tonnes mined | 118,000 | 210,000 | 792,000 | 642,000 | ||||
Total tonnes mined | 1,144,000 | 2,007,000 | 6,354,000 | 4,869,000 | ||||
Tonnes milled | 183,700 | 188,000 | 718,400 | 422,000 | ||||
Tonnes per day milled | 1,997 | 2,040 | 1,968 | 1,730 | ||||
Head grade of ore (gpt) | 2.50 | 2.90 | 3.17 | 3.7 | ||||
Recovery (%) | 92% | 92% | 92% | 93% | ||||
| Gold produced (oz) 1 | 13,770 | 15,820 | 67,499 | 52,152 | ||||
| Gold sold (oz) | 16,431 | 21,124 | 69,922 | 46,016 | ||||
| Total cash costs/oz sold | $882 | $600 | $589 | $567 | ||||
1.Total gold production in 2009 included 5,531 ounces | ||||||||
During 2010, 6,354,000 tonnes of material was mined from Phase 1 of the
open pit of which 792,000 tonnes were ore and 5,562,000 tonnes were
waste rock resulting in a strip ratio of 7.0:1 compared to the year
ended December 31, 2009 when 4,869,000 tonnes were mined from Phase 1,
of which 642,000 tonnes was ore, resulting in a strip ratio of 6.6:1. In
addition to the Phase 1 tonnes mined in the year 2010, an additional
3,199,000 tonnes of overburden material was removed in preparation for
the mining of Phase 2 of the open pit. The overburden removal continued
into Q1 2011 and ore production from Phase 2 commenced in March 2011.
In 2010, the Black Fox mill processed 718,400 tonnes of ore (1,968
tonnes per day), at an average gold grade of 3.17 grams per tonne
('gpt?) and a recovery rate of 92%, achieving total gold production of
67,499 ounces, compared to 52,152 ounces produced during 2009.
Seventy-five percent, or 52,729 ounces, of the total gold sales of
69,922 ounces in 2010 were delivered against forward sales contracts at
a realized price of $876 per ounce. The balance of 17,193 ounces of gold
(25%) was sold into the spot market at an average gold price of $1,305
per ounce. In 2010, the average realized gold price for the year was
$981 per ounce and total cash costs were $589 per ounce. Thus, Brigus
achieved a non-GAAP cash margin of $392 per ounce in 2010. During 2011,
88% of our gold will be sold into the spot market and 12% will be sold
for $500 per ounce pursuant to the gold stream agreement.
Financial Overview
Net loss for the year ended December 31, 2010 was $67.0 million compared
to a net loss of $61.7 million for 2009. The 2010 net loss was related
primarily to a $51.8 million loss on gold derivatives, an $8 million
non-cash loss in the change in fair value of certain warrants to
purchase Brigus common shares that are denominated in Canadian dollars
(other than the Company′s U.S. dollar functional currency) and an $11.5
million interest expense charge.
General and administrative expenses were $12.6 million and $4.9 million
for the years 2010 and 2009, respectively. The increase is mainly as a
result of the merger between Apollo and Linear that formed Brigus,
including employee severance costs, increased overhead as a result of
operating two offices and increased consulting and legal fees in
connection with the Project Facility. Brigus plans to significantly
reduce General and Administrative expenses as it closes its Denver
office and continues to transition all corporate functions to its
executive offices in Halifax.
Capital Expenditures
Capital expenditures were $35.5 million in 2010 and included $20.9
million on the development of the underground mine, $12.6 million on
open pit and underground mine equipment financed by capital leases, and
$2.0 million on a new mine maintenance workshop and other service
infrastructure.
The underground mine at Black Fox will supplement the open pit ore feed
to the mill with higher-grade ores. The mine plan for Phase 2 of the
open pit also required that the historic ventilation and services raise
be moved and replaced with a larger capacity facility. The new
ventilation and services facility was commissioned on March 1, 2011.
Mining of Phase 2 waste commenced during Q1 2011 and the mining of ore
from the Phase 2 open pit began on March 23, 2011 following the removal
of the old ventilation facility.
Exploration Overview
Exploration expenditures were $7.5 million in 2010, a significant
increase from $2.0 million in 2009. In 2010, the Company spent $5.5
million on exploration at the Black Fox Complex, which includes the Grey
Fox and Pike River properties, and $1.2 million at the Goldfields
Project in Saskatchewan with the balance spent in Mexico.
At the Black Fox Complex, drilling is continuing with four drills
testing gold targets at the Contact Zone and elsewhere. Over the past
year, drilling has tripled the strike length of the Contact Zone to 1.2
kilometres with the deepest gold mineralization to date intersected at
approximately 300 m from surface. Significantly, the Contact Zone
remains open along strike and at depth. The proximity of the Contact
Zone to the Company′s operating Black Fox Mine provides an opportunity
for rapid project advancement and production growth leveraging the
Company′s existing infrastructure. In January 2011, a drilling program
commenced at the historic Stock gold mine at the Black Fox Mill
property, and as of March 11, 2011, two drill holes had been completed
for 935 m, with assays pending.
Reserves and Resources
At December 31, 2010, Black Fox had approximately 0.9 million ounces of
gold contained within 6.3 million tonnes at an average gold grade of 4.4
gpt in Proven and Probable Reserves. Brigus′ consolidated total Proven
and Probable Reserves, including Black Fox and the Goldfields Project,
total 1.9 million ounces of gold contained within 31.7 million tonnes at
an average gold grade of 1.9 gpt.
Estimated Gold Mineral Proven and Probable Reserves as of December
31, 2010
| Proven Reserves | Probable Reserves | Proven & Probable Reserves | ||||||||||||||||
| Property | Tonnes | Gold | Gold 3 | Tonnes | Gold | Gold 3 | Tonnes | Gold | Gold 3 | |||||||||
| (gpt) | (oz) | (gpt) | (oz) | (gpt) | (oz) | |||||||||||||
Black Fox Mine | ||||||||||||||||||
Open Pit | - | - | - | 3,113,000 | 3.2 | 321,800 | 3,113,000 | 3.2 | 321,800 | |||||||||
Underground | - | - | - | 2,936,000 | 5.9 | 560,000 | 2,936,000 | 5.9 | 560,000 | |||||||||
Stockpile | 287,000 | 1.5 | 14,000 | - | - | - | 287,000 | 1.5 | 14,000 | |||||||||
Sub-Total Black Fox1,2 | 287,000 | 1.5 | 14,000 | 6,049,000 | 4.5 | 881,800 | 6,336,000 | 4.4 | 895,800 | |||||||||
Goldfields ? Box2 | 2,317,700 | 1.7 | 126,900 | 12,590,300 | 1.4 | 559,000 | 14,908,000 | 1.4 | 685,900 | |||||||||
Goldfields ? Athona 2 | 10,483,000 | 1.0 | 344,500 | 10,483,000 | 1.0 | 344,500 | ||||||||||||
| Total | 2,604,700 | 1.7 | 140,900 | 29,122,300 | 1.9 | 1,785,300 | 31,727,000 | 1.9 | 1,926,200 | |||||||||
Footnotes to Proven and Probable Reserves table:
1.Estimated Black Fox reserves and resources are based on
$1,150/oz Au for 88% of production and $500/oz Au for gold sold through
the gold stream agreement from the NI 43-101 Technical Report prepared
by Wardrop Engineering Inc., January 2011. The Black Fox open pit
reserves and resources are reported at a 0.88 gpt cutoff and the
underground reserves and resources are reported at a 2.54 gpt cutoff.
Estimated Black Fox reserves and resources are shown as at December 31,
2010, net of mining depletion from October 31, 2010, which was the date
of the data in the independent Technical Report.
2.The average gold grade for Proven and Probable Reserves is
adjusted for dilution while Measured and Indicated Resources is not.Contained
metal in estimated reserves remains subject to metallurgical recovery
losses. Goldfields reserves and resources are based on $750/oz Au and 2%
NSR. Goldfields' Box deposit's reserves and resources reflect a gold
cutoff grade of 0.25 gpt.Goldfields' Athona deposit′s resources
reflect a gold cutoff grade of 0.25 gpt. The NI 43-101 Technical Reports
for the Box and Athona deposits, which comprise the Goldfields Project,
were prepared by Bikerman Engineering & Technology Associates, with the
effective date of estimated reserves and resources of September 2009.
3.Disclosure of 'contained ounces? for estimated mineral
resources is permitted disclosure under Canadian regulations; however,
the SEC only permits registrants to report SEC compliant reserves in
ounces, and requires reporting of mineralization that does not qualify
as reserves as in place tonnage and grade without reference to unit
measures.
Estimated Gold Mineral Measured and Indicated Resources, Including
Reserves, as of December 31, 2010
| Measured Resources | Indicated Resources | Measured & Indicated Resources | |||||||||||
| Property | Tonnes | Gold | Gold & Au | Tonnes | Gold | Gold & Au | Tonnes | Gold | Gold & Au | ||||
| (gpt) | (oz) | (gpt) | (oz) | (gpt) | (oz) | ||||||||
Black Fox Mine | |||||||||||||
Open Pit | - | - | - | 3,123,000 | 4.4 | 444,800 | 3,123,000 | 4.4 | 444,800 | ||||
Underground | - | - | - | 2,505,000 | 7.2 | 579,200 | 2,505,000 | 7.2 | 579,200 | ||||
Stockpile | 287,000 | 1.5 | 14,000 | - | - | - | 287,000 | 1.5 | 14,000 | ||||
Sub-Total Black Fox1,2 | 287,000 | 1.5 | 14,000 | 5,628,000 | 5.7 | 1,024,000 | 5,915,000 | 5.5 | 1,038,000 | ||||
Goldfields ? Box2 | 2,401,000 | 1.7 | 129,000 | 14,500,000 | 1.3 | 623,000 | 16,901,000 | 1.4 | 753,000 | ||||
| - | - | - | 10,878,000 | 1.0 | 333,000 | 10,878,000 | 1.0 | 333,000 | ||||
Ixhuatán3 | 1,320,000 | 5.1 | 217,000 | 8,050,000 | 2.5 | 687,000 | 9,370,000 | 3.0 | 905,000 | ||||
| Total | 4,008,000 | 2.8 | 360,000 | 39,056,000 | 2.1 | 2,667,000 | 43,064,000 | 2.2 | 3,029,000 | ||||
Estimated Gold Mineral Inferred Resources as of December 31, 2010
| Inferred Resources | ||||||
| Property | Tonnes | Gold | Gold & Au | |||
| (gpt) | (oz) | |||||
Black Fox Mine | ||||||
Open Pit | 670,000 | 2.6 | 55,700 | |||
Underground | 115,000 | 5.8 | 21,500 | |||
Sub-Total Black Fox1,2 | 785,000 | 3.1 | 77,200 | |||
Goldfields ? Box2 | 3,710,000 | 0.9 | 111,000 | |||
Goldfields ? Athona 2 | 2,198,000 | 0.8 | 59,000 | |||
Ixhuatán3 | 7,130,000 | 1.7 | 388,000 | |||
| Total | 13,823,000 | 1.4 | 635,200 | |||
Footnotes to Measured and Indicated Resources and Inferred Resources
tables:
1.Estimated Black Fox reserves and resources are based on
$1,150/oz Au for 88% of production and $500/oz Au for gold sold through
the gold stream agreement from the NI 43-101 Technical Report prepared
by Wardrop Engineering Inc., January 2011. The Black Fox open pit
reserves and resources are reported at a 0.88 gpt cutoff and the
underground reserves and resources are reported at a 2.54 gpt cutoff.
Estimated Black Fox reserves and resources are shown as at December 31,
2010, net of mining depletion from October 31, 2010, which was the date
of the data in the independent Technical Report.
2.The average gold grade for Proven and Probable Reserves is
adjusted for dilution while Measured and Indicated Resources is not.Contained
metal in estimated reserves remains subject to metallurgical recovery
losses. Goldfields reserves and resources are based on $750/oz Au and 2%
NSR. Goldfields' Box deposit's reserves and resources reflect a gold
cutoff grade of 0.25 gpt.Goldfields' Athona deposit′s resources
reflect a gold cutoff grade of 0.25 gpt. The NI 43-101 Technical Reports
for the Box and Athona deposits, which comprise the Goldfields Project,
were prepared by Bikerman Engineering & Technology Associates, with the
effective date of estimated reserves and resources of September 2009.
Ixhuatan′s resources and gold equivalency are based on $825/oz Au and
$12.75/oz Ag.
3.The Ixhuatan NI 43-101 Technical Report was prepared by
Giroux Consultants Ltd., with the effective date for estimated resources
of June 2006. The Ixhuatan resources represented here are based on a
gold cutoff grade of 1.0 gpt. Ixhuatan resources in the Technical Report
were presented in a series of gold cutoff grades from 0.5 gpt to 2.0 gpt.
4.Disclosure of 'contained ounces? for estimated mineral
resources is permitted disclosure under Canadian regulations; however,
the SEC only permits registrants to report SEC compliant reserves in
ounces, and requires reporting of mineralization that does not qualify
as reserves as in place tonnage and grade without reference to unit
measures.
2011 Outlook
The Black Fox underground mine is expected to achieve commercial
production in April 2011, increasing to 1,100 tpd by the end of 2011.
Brigus projects increasing gold production quarter-over-quarter during
2011 as higher grade underground ore augments open pit ore for a total
throughput of 2,000 tpd at the Black Fox Mill.
The average gold grades are expected to be 6.2 gpt from underground ore
and 3.4 gpt from open pit ore.
Estimated total gold production and cash costs in 2011 are as follows:
Brigus Estimates | Construction | Last Three Quarters of 2011 | Full Year | |||||||
| Q1 2011 | Q2 2011 | Q3 2011 | Q4 2011 | 2011 | ||||||
Gold production (oz) | 8,500 | 71,500-75,500 | 80,000-84,000 | |||||||
Total cash costs ($/oz) | $1,150 -$1,250 | $500-$550 | $575-$625 | |||||||
Total capital expenditure in 2011 is estimated at $37.0 million, mainly
for underground development and underground mining equipment at Black
Fox. The Company invested approximately $13.5 million in capital
expenditure in the Q1 2011.
Exploration expenditures for 2011 are estimated at $11.0 million.
Continuing positive exploration drill results from Black Fox Complex
targets such as the Contact Zone, Gibson and Grey Fox South represent
near term potential to expand gold production and to extend the mine
life at the Black Fox Complex.
In conjunction with the increased exploration program in 2011, the
Company has commenced an engineering study for the expansion of the
Black Fox Mill. The results from this initial conceptual study are
expected mid-year and will evaluate the opportunity for a multi-year
phased increase in throughput from the current level of 2,000 tpd to
2,250 tpd and over 3,000 tpd over time. The proposed 3,000 tpd rate
would represent a 50% increase in production capacity. The
implementation of a gravity circuit and additional leach capacity as
part of the mill expansion are expected to improve the recovery rate.
The Qualified Person who reviewed the above technical information
related to operations of the Black Fox Mine and Mill is Chief Operating
Officer and Vice President Richard Allan, P.Eng.
About Brigus Gold
Brigus is a growing gold producer committed to maximizing shareholder
value through a strategy of efficient production, targeted exploration
and select acquisitions. The Company operates the wholly owned Black Fox
Complex in the Timmins gold district of Ontario, Canada. The Black Fox
Complex encompasses the Black Fox Mine and Mill, and adjoining Grey
Fox-Pike River property, all in the Township of Matheson, Ontario,
Canada. Brigus is also advancing its Goldfields Project located near
Uranium City, Saskatchewan, Canada, which hosts the Box and Athona gold
deposits. In Mexico, Brigus holds a 100% interest in the Ixhuatan
Project located in the state of Chiapas. In the Dominican Republic,
Brigus Gold has a joint venture covering three mineral exploration
projects.
Cautionary Note to U.S. Investors Concerning Estimates of Mineral
Resources
This news release uses the term mineral 'resources?. The Company advises
U.S. investors that while these terms are defined in and required by
Canadian regulations, these terms are not defined terms under the U.S.
Securities and Exchange Commission ('SEC?) Industry Guide 7 and are
generally not permitted to be used in reports and registration
statements filed with the SEC. The SEC generally only permits issuers to
report mineralization that does not constitute SEC Industry Guide 7
compliant 'reserves? as in-place tonnage and grade without reference to
unit measures. U.S. investors are cautioned not to assume that any
part or all of mineral deposits in these categories will ever be
converted into reserves.
Non-GAAP Financial Measures
The term 'total cash cost? is a non-GAAP financial measure and is used
on a per ounce of gold basis. Total cash cost is equivalent to direct
operating cost as found on the Consolidated Statements of Operations and
includes by-product credits for payable silver production. We have
included total cash cost information to provide investors with
information about the cost structure of our mining operations. This
information differs from measures of performance determined in
accordance with GAAP in the United States and Canada and should not be
considered in isolation or as a substitute for measures of performance
prepared in accordance with GAAP. This measure is not necessarily
indicative of operating profit or cash flow from operations as
determined under GAAP and may not be comparable to similarly titled
measures of other companies.
Cautionary and Forward-Looking Statements
Statements contained in this news release which are not historical facts
are forward-looking statements that involve risk, uncertainties and
other factors that could cause actual results to differ materially from
those expressed or implied by such forward-looking statements. All
statements regarding the ability of the Company to achieve its
production and cash costs estimates for Q1 2011, the period Q2-Q4, 2011
and for the full year 2011; to achieve ramping up the Black Fox
underground mine to reach commercial production in April 2011 and 1,100
tpd by the end of 2011; to realize the estimated average gold grades for
the open pit and underground operations; to accomplish the exploration
and capital programs for 2011, including the estimated expenditures; to
expand the mill capacity and production increases in the future; and to
improve the recovery rates in the future; to continue to show positive
exploration drill results; completion of an engineering study for the
Black Fox Mill; and deliver gold pursuant to the gold stream agreement,
are forward-looking statements and estimates that involve various risks
and uncertainties. This forward-looking information includes, or may be
based upon, estimates, forecasts, and statements as to management's
expectations with respect to, among other things, the outcome of legal
proceedings, the issue of permits, the size and quality of the company's
mineral resources, progress in development of mineral properties, future
production and sales volumes, capital and mine production costs, demand
and market outlook for metals, future metal prices and treatment and
refining charges, and the financial results of the Company.
Important factors that could cause actual results to differ materially
from these forward-looking statements include environmental risks and
other factors disclosed under the heading 'Risk Factors? in Brigus
Gold′s most recent annual report on Form 10-K filed with the United
States Securities and Exchange Commission and elsewhere in Brigus Gold′s
documents filed from time to time with the Toronto Stock Exchange, the
NYSE Amex Equities, the United States Securities and Exchange Commission
and other regulatory authorities. All forward-looking statements
included in this news release are based on information available to the
Company on the date hereof. The Company assumes no obligation to update
any forward-looking statements, except as required by applicable
securities laws.
BRIGUS GOLD CORP. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands of U.S. Dollars) | ||||||||
| December 31, | ||||||||
| 2010 | 2009 | |||||||
| ASSETS | ||||||||
CURRENT | ||||||||
Cash | $ | 6,425 | $ | ? | ||||
Restricted cash | 16,379 | 6,731 | ||||||
Accounts receivable and other | 3,379 | 1,690 | ||||||
Prepaids | 828 | 394 | ||||||
Derivative instruments | ? | 1,961 | ||||||
Inventories | 9,927 | 8,189 | ||||||
Investments | 3,440 | ? | ||||||
Total current assets | 40,378 | 18,965 | ||||||
Derivative instruments | ? | 4,844 | ||||||
Inventories, long-term | 3,552 | ? | ||||||
Investments, long-term | 1,036 | 1,036 | ||||||
Property, plant and equipment | 198,423 | 116,171 | ||||||
Investment in Montana Tunnels joint venture | ? | 3,440 | ||||||
Restricted certificates of deposit | 18,028 | 14,805 | ||||||
TOTAL ASSETS | $ | 261,417 | $ | 159,261 | ||||
| LIABILITIES | ||||||||
CURRENT | ||||||||
Bank indebtedness | $ | ? | $ | 328 | ||||
Accounts payable | 15,752 | 6,789 | ||||||
Accrued liabilities | 5,334 | 2,129 | ||||||
Derivative instruments | ? | 12,571 | ||||||
Current portion of deferred revenue | 6,180 | ? | ||||||
Current portion of long-term debt | 29,525 | 34,860 | ||||||
Total current liabilities | 56,791 | 56,677 | ||||||
Accrued long-term liabilities | 1,991 | 483 | ||||||
Derivative instruments | ? | 31,654 | ||||||
Deferred revenue | 50,120 | ? | ||||||
Long-term debt | 15,879 | 48,909 | ||||||
Equity-linked financial instruments | 42,742 | 27,318 | ||||||
Accrued site closure costs | 5,307 | 5,345 | ||||||
Future income tax liability | 12,756 | 1,304 | ||||||
TOTAL LIABILITIES | 185,586 | 171,690 | ||||||
| SHAREHOLDERS′ EQUITY (DEFICIENCY) | ||||||||
Common stock - Nil par value, unlimited shares authorized; 182,424,828 shares issued and outstanding (2009 ? 66,050,230) | 349,725 | 202,769 | ||||||
Additional paid-in capital | 53,821 | 45,555 | ||||||
Accumulated deficit | (327,715 | ) | (260,753 | ) | ||||
TOTAL SHAREHOLDERS′ EQUITY (DEFICIENCY) | 75,831 | (12,429 | ) | |||||
TOTAL LIABILITIES AND SHAREHOLDERS′ EQUITY (DEFICIENCY) | $ | 261,417 | $ | 159,261 | ||||
BRIGUS GOLD CORP. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) (U.S. dollars and shares in thousands, except per share amounts) | ||||||||||||
| Year Ended December 31, | ||||||||||||
| 2010 | 2009 | 2008 | ||||||||||
Revenue from sale of gold | $ | 85,935 | $ | 47,008 | $ | ? | ||||||
Operating expenses | ||||||||||||
Direct operating costs | 41,265 | 26,126 | ? | |||||||||
Depreciation and amortization | 13,672 | 6,978 | 100 | |||||||||
Accretion expense ? accrued site closure costs | 646 | 369 | ? | |||||||||
General and administrative expenses | 12,647 | 4,875 | 3,696 | |||||||||
Impairment on exploration property | 2,414 | ? | ? | |||||||||
Exploration and business development | 7,503 | 1,960 | 5,517 | |||||||||
78,147 | 40,308 | 9,313 | ||||||||||
Operating income (loss) | 7,788 | 6,700 | (9,313 | ) | ||||||||
Other income (expenses) | ||||||||||||
Interest income | 283 | 195 | 238 | |||||||||
Interest expense | (11,470 | ) | (8,045 | ) | (4,868 | ) | ||||||
Debt transaction costs | ? | (1,249 | ) | (190 | ) | |||||||
Loss on modification of debentures | (513 | ) | (1,969 | ) | ? | |||||||
Linear acquisition costs | (3,338 | ) | ? | ? | ||||||||
Fair value change on equity-linked financial instruments | (7,958 | ) | (10,720 | ) | ? | |||||||
(Loss) gain on derivative instruments | (51,811 | ) | (43,775 | ) | 3,958 | |||||||
Foreign exchange (loss) gain and other | (774 | ) | 376 | (1,329 | ) | |||||||
(75,581 | ) | (65,187 | ) | (2,191 | ) | |||||||
Loss before income taxes and equity (loss) earnings in Montana Tunnels joint venture | (67,793 | ) | (58,487 | ) | (11,504 | ) | ||||||
Income taxes | 1,532 | 73 | 2,380 | |||||||||
Equity (loss) earnings in Montana Tunnels joint venture | (701 | ) | (3,236 | ) | 10,326 | |||||||
Net (loss) income and comprehensive (loss) income | $ | (66,962 | ) | $ | (61,650 | ) | $ | 1,202 | ||||
Basic and diluted net (loss) income per share: | $ | (0.57 | ) | $ | (1.00 | ) | $ | 0.02 | ||||
Basic weighted-average number of shares outstanding | 116,516 | 61,351 | 46,265 | |||||||||
Diluted weighted-average number of shares outstanding | 116,516 | 61,351 | 53,035 | |||||||||
BRIGUS GOLD CORP. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands of U.S. dollars) | ||||||||||||
| Year Ended December 31, | |||||||||||
| 2010 | 2009 | 2008 | ||||||||||
| (In thousands of U.S. dollars) | ||||||||||||
Operating Activities | ||||||||||||
Net (loss) income for the year | $ | (66,962 | ) | $ | (61,650 | ) | $ | 1,202 | ||||
Items not affecting cash: | ||||||||||||
Depreciation and amortization | 13,672 | 6,978 | 100 | |||||||||
Amortization of deferred financing costs | 351 | 87 | 160 | |||||||||
Stock-based compensation | 1,152 | 764 | 835 | |||||||||
Shares and warrants issued for services and payment of interest | 2,516 | 4,020 | ? | |||||||||
Accretion expense ? accrued site closure costs | 646 | 369 | ? | |||||||||
Accretion expense ? amortization of debt discount | 6,447 | 2,719 | ? | |||||||||
Accretion expense ? convertible debentures | 524 | 1,433 | 4,382 | |||||||||
Interest paid on convertible debentures | (1,158 | ) | (567 | ) | (1,016 | ) | ||||||
Write-down of exploration property | 2,264 | ? | ? | |||||||||
Non-cash losses on derivative instruments | 34,959 | 37,972 | 1,549 | |||||||||
Net change in value of equity-linked financial instruments | 7,958 | 10,720 | ? | |||||||||
Unrealized foreign exchange loss and other | 1,026 | (1,138 | ) | 1,283 | ||||||||
Deferred income taxes | (1,532 | ) | (73 | ) | (2,380 | ) | ||||||
Net change in non-cash operating working capital items | 2,202 | (1,611 | ) | (1,634 | ) | |||||||
Net payments on early settlement of derivative instruments | (72,379 | ) | ? | ? | ||||||||
Deferred revenue from sale of gold stream | 56,300 | ? | ? | |||||||||
Equity investment in Montana Tunnels joint venture | 589 | 3,236 | (10,326 | ) | ||||||||
Earnings distribution from Montana Tunnels joint venture | ? | 132 | 8,555 | |||||||||
Net cash (used in) provided by operating activities | (11,425 | ) | 3,391 | 2,710 | ||||||||
Investing Activities | ||||||||||||
Property, plant and equipment expenditures | (22,911 | ) | (55,591 | ) | (29,826 | ) | ||||||
Net cash acquired in the Linear acquisition via the issuance of common shares, warrants and options | 15,426 | ? | ? | |||||||||
Restricted cash and certificates of deposit, and other long-term assets | (12,324 | ) | (2,395 | ) | (12,054 | ) | ||||||
Net cash used in investing activities | (19,809 | ) | (57,986 | ) | (41,880 | ) | ||||||
Financing Activities | ||||||||||||
Proceeds on issuance of shares to Linear | 24,497 | ? | ? | |||||||||
Proceeds on issuance of other shares and warrants | 69,551 | 10,739 | 26,263 | |||||||||
Proceeds from exercise of warrants and options | 2,775 | 1,416 | 1,404 | |||||||||
Proceeds from debt | 14,711 | 66,534 | 21,105 | |||||||||
Repayments of debt | (73,578 | ) | (23,643 | ) | (9,694 | ) | ||||||
Net cash provided by financing activities | 37,956 | 55,046 | 39,078 | |||||||||
Effect of exchange rate changes on cash | (297 | ) | (451 | ) | (1,242 | ) | ||||||
Net increase (decrease) in cash | 6,425 | ? | (1,334 | ) | ||||||||
Cash, beginning of year | ? | ? | 1,334 | |||||||||
Cash, end of year | $ | 6,425 | $ | ? | $ | ? | ||||||
| ||||||||||||
Interest paid | $ | 5,743 | $ | 5,555 | $ | 1,504 | ||||||
Income taxes paid | $ | ? | $ | 35 | $ | 95 | ||||||
Brigus Gold Corp.
Jennifer Nicholson, 902-422-1421
Vice
President of Investor Relations
ir@brigusgold.com
Toll-Free:
1-866-785-0456
or
Wendy Yang, 303-524-3203
Vice President
www.brigusgold.com