Santa Fe Gold Announces Record Operating Results
First Ever Positive Quarterly EBITDA & $2.3 million in Fiscal Q4
Revenue Highlight Breakout Year for SFEG
Santa Fe Gold Corporation (OTCBB: SFEG) is pleased to announce
record financial results for its fiscal year ending June 30, 2011.
Record Operating Results
Santa Fe recorded revenue of $6,440,897 for its 2011 fiscal year, up
1,912% from $320,145 in its 2010 fiscal year. 2011 represents Santa Fe′s
first year of material operating revenue as the Company′s Summit
silver-gold mine came on-line and started generating meaningful revenue.
Santa Fe also generated its first ever positive quarter for earnings
before interest, taxes, depreciation and amortization ('EBITDA?) in the
quarter ended June 30, 2011 with positive EBITDA of $54,170. Full
financial results are available in Santa Fe′s Form 10-K filed with the
SEC and available at www.sec.gov.
'We are very pleased with the continued progress in our operating
performance,? said Pierce Carson, CEO of Santa Fe. 'We have been working
hard to move into the black at the EBITDA level and now plan to continue
our momentum by substantially increasing silver and gold production. We
anticipate higher production levels will yield better operating margins
and result in an even better fiscal 2012.?
Recently Announced Acquisition
Santa Fe recently announced the signing of a memorandum of understanding
with Columbus Silver Corporation (TSXV: CSC) pursuant to which Santa Fe
will conditionally acquire Columbus Silver for cash. Please see Santa
Fe′s recent press release and 8-K filing available at www.sec.gov
for more details.
About Santa Fe Gold:
Santa Fe Gold is a U.S.-based mining and exploration enterprise focused
on acquiring and developing gold, silver, copper and industrial mineral
properties. Santa Fe controls: (i) the Summit mine and Lordsburg mill in
southwestern New Mexico, which began processing operations in 2010; (ii)
a substantial land position near the Lordsburg mill, comprising the core
of the Lordsburg Mining District; (iii) the Ortiz gold property in
north-central New Mexico; (iv) the Black Canyon mica deposit and
processing equipment near Phoenix, Arizona; and (v) a deposit of
micaceous iron oxide (MIO) in western Arizona. Santa Fe Gold intends to
build a portfolio of high-quality, diversified mineral assets with an
emphasis on precious metals.
To learn more about Santa Fe Gold, visit www.santafegoldcorp.com.
Cautionary Note Regarding Forward-Looking Statements:
This press release contains forward-looking statements and
forward-looking information (collectively, 'forward-looking statements?)
within the meaning of applicable US and Canadian securities legislation.
All statements, other than statements of historical fact, included
herein are forward-looking statements. Although the Company believes
that such statements are reasonable, it can give no assurance that such
expectations will prove to be correct. Forward-looking statements are
typically identified by words such as: believe, expect, anticipate,
intend, estimate, postulate and similar expressions, or are those,
which, by their nature, refer to future events. The Company cautions
investors that any forward-looking statements by the Company are not
guarantees of future results or performance, and that actual results may
differ materially from those in forward looking statements as a result
of various factors, including, but not limited to, variations in the
nature, quality and quantity of any mineral deposits that may be
located, variations in the market price of any mineral products the
Company may produce or plan to produce, the Company's inability to
obtain any necessary permits, consents or authorizations required for
its activities, the Company's inability to produce minerals from its
properties successfully or profitably, to continue its projected growth,
to raise the necessary capital or to be fully able to implement its
business strategies, and other risks and uncertainties disclosed in the
Company′s Annual Report on Form 10-K for the year ended June 30, 2010
and its most recent quarterly reports filed with the United States
Securities and Exchange Commission (the 'SEC?), and other information
released by the Company and filed with the appropriate regulatory
agencies. All of the Company's US public disclosure filings may be
accessed via www.sec.gov
and its Canadian public disclosure filings may be accessed via www.sedar.com,
and readers are urged to review these materials.
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SANTA FE GOLD CORPORATION | ||||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||||
? | ? | ? | ? | ? | ? | |||||||
| June 30, | ||||||||||||
| ASSETS | 2011 | 2010 | ||||||||||
CURRENT ASSETS: | ||||||||||||
Cash and cash equivalents | $ | 172,531 | $ | 5,540,130 | ||||||||
Accounts receivable | 2,230,605 | - | ||||||||||
Inventory | 175,578 | - | ||||||||||
Marketable securities | 97,260 | - | ||||||||||
Prepaid expenses and other current assets | ? | 279,064 | ? | ? | 267,208 | ? | ||||||
Total Current Assets | ? | 2,955,038 | ? | ? | 5,807,338 | ? | ||||||
? | ||||||||||||
MINERAL PROPERTIES | ? | 579,000 | ? | ? | 579,000 | ? | ||||||
? | ||||||||||||
PROPERTY, PLANT AND EQUIPMENT, net | ? | 13,104,215 | ? | ? | 3,790,215 | ? | ||||||
? | ||||||||||||
OTHER ASSETS: | ||||||||||||
Construction in progress | 8,427,113 | 15,177,362 | ||||||||||
Idle equipment, net | 1,223,528 | 1,223,528 | ||||||||||
Note receivable and accrued interest | 203,422 | - | ||||||||||
Restricted cash | 410,374 | 410,374 | ||||||||||
Deferred financing costs | ? | 314,700 | ? | ? | 413,017 | ? | ||||||
Total Other Assets | ? | 10,579,137 | ? | ? | 17,224,281 | ? | ||||||
Total Assets | $ | 27,217,390 | ? | $ | 27,400,834 | ? | ||||||
? | ||||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||||||||||
CURRENT LIABILITIES: | ||||||||||||
Accounts payable | $ | 1,090,907 | $ | 458,098 | ||||||||
Accrued liabilities | 1,976,751 | 320,566 | ||||||||||
Derivative instrument liabilities | 8,973,066 | 9,894,043 | ||||||||||
Current portion, notes payable | 78,384 | 138,821 | ||||||||||
Current portion, capital leases | 83,856 | 138,117 | ||||||||||
Deferred revenue, current portion | 3,611,266 | 243,107 | ||||||||||
Accrued interest payable | ? | 255,109 | ? | ? | 20,523 | ? | ||||||
Total Current Liabilities | 16,069,339 | 11,213,275 | ||||||||||
? | ||||||||||||
LONG TERM LIABILITIES: | ||||||||||||
| 11,001,935 | 9,738,431 | ||||||||||
| 430,316 | 418,009 | ||||||||||
Notes payable, net of current portion | 58,957 | 122,915 | ||||||||||
Capital leases, net of current portion | 45,057 | 128,909 | ||||||||||
Deferred revenue, net of current portion | - | 3,756,893 | ||||||||||
Asset retirement obligation | ? | 149,236 | ? | ? | 84,059 | ? | ||||||
- | ||||||||||||
Total Liabilities | ? | 27,754,840 | ? | ? | 25,462,491 | ? | ||||||
? | ||||||||||||
STOCKHOLDERS' EQUITY (DEFICIT): | ||||||||||||
Common stock, $.002 par value, 300,000,000 shares authorized; 94,744,412 and | ||||||||||||
93,059,568 shares issued and outstanding, respectively; Includes non-vested | ||||||||||||
shares of 575,000 and 765,000, respectively | 188,341 | 184,590 | ||||||||||
Additional paid in capital | 59,021,550 | 56,883,203 | ||||||||||
Accumulated (deficit) | (59,746,543 | ) | (55,129,450 | ) | ||||||||
Accumulated other comprehensive (loss) | ? | (798 | ) | ? | - | ? | ||||||
Total Stockholders' Equity (Deficit) | ? | (537,450 | ) | ? | 1,938,343 | ? | ||||||
? | ||||||||||||
| $ | 27,217,390 | ? | $ | 27,400,834 | ? | |||||||
? | ||||||||||||
? | ? | ? | ? | ? | ? | ||||||||||
| SANTA FE GOLD CORPORATION | |||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
| AND COMPREHENSIVE (LOSS) | |||||||||||||||
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| For the Years Ended June 30, | |||||||||||||||
2011 | 2010 | 2009 | |||||||||||||
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? | |||||||||||||||
SALES | $ | 6,440,897 | ? | $ | 320,145 | ? | $ | 72,624 | ? | ||||||
? | |||||||||||||||
OPERATING COSTS AND EXPENSES: | |||||||||||||||
Costs applicable to sales | 3,317,914 | - | 31,687 | ||||||||||||
Exploration and mine and mill start up costs | 2,147,511 | 1,004,256 | 641,230 | ||||||||||||
General and administrative | 2,921,864 | 2,204,724 | 2,737,671 | ||||||||||||
Depreciation and amortization | 2,322,736 | 477,760 | 279,012 | ||||||||||||
Accretion of asset retirement obligation | ? | - | ? | ? | - | ? | ? | 3,750 | ? | ||||||
? | 10,710,025 | ? | ? | 3,686,740 | ? | ? | 3,693,350 | ? | |||||||
? | |||||||||||||||
LOSS FROM OPERATIONS | ? | (4,269,128 | ) | ? | (3,366,595 | ) | ? | (3,620,726 | ) | ||||||
? | |||||||||||||||
OTHER INCOME (EXPENSE): | |||||||||||||||
(Loss) on disposal of assets | - | (3,572 | ) | (3,978 | ) | ||||||||||
Interest income | 11,645 | 16,410 | 85,178 | ||||||||||||
Miscellaneous income | - | 4,278 | 62,718 | ||||||||||||
Foreign currency translation gain (loss) | - | - | 10,467 | ||||||||||||
Gain (loss) on derivative instrument liabilities | 1,652,961 | 3,295,947 | (514,356 | ) | |||||||||||
Relief of debt | - | - | 90,967 | ||||||||||||
Accretion of discounts on notes payable | (1,275,811 | ) | (1,052,160 | ) | (1,429,000 | ) | |||||||||
Interest expense | ? | (736,760 | ) | ? | (103,662 | ) | ? | (216,866 | ) | ||||||
? | (347,965 | ) | ? | 2,157,241 | ? | ? | (1,914,870 | ) | |||||||
? | |||||||||||||||
LOSS BEFORE PROVISION FOR INCOME TAXES | (4,617,093 | ) | (1,209,354 | ) | (5,535,596 | ) | |||||||||
? | |||||||||||||||
PROVISION FOR INCOME TAXES | ? | - | ? | ? | - | ? | ? | - | ? | ||||||
? | |||||||||||||||
NET LOSS | (4,617,093 | ) | (1,209,354 | ) | (5,535,596 | ) | |||||||||
? | |||||||||||||||
OTHER COMPREHENSIVE (LOSS) | |||||||||||||||
Unrealized (loss) on marketable securities | ? | (798 | ) | ? | - | ? | ? | - | ? | ||||||
? | |||||||||||||||
NET COMPREHENSIVE (LOSS) | $ | (4,617,891 | ) | $ | (1,209,354 | ) | $ | (5,535,596 | ) | ||||||
? | |||||||||||||||
Basic and Diluted Per Share data | |||||||||||||||
Net Loss - basic and diluted | $ | (0.05 | ) | $ | (0.01 | ) | $ | (0.07 | ) | ||||||
? | |||||||||||||||
Weighted Average Common Shares Outstanding: | |||||||||||||||
Basic and diluted | ? | 93,249,081 | ? | ? | 87,639,127 | ? | ? | 76,989,929 | ? | ||||||
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? | ? | ? | ? | ? | ? | ||||||||||
| SANTA FE GOLD CORPORATION | |||||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||
| |||||||||||||||
| For the Years Ended June 30, | |||||||||||||||
| 2011 | 2010 | 2009 | |||||||||||||
? | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||
Net loss | $ | (4,617,093 | ) | $ | (1,209,354 | ) | $ | (5,535,596 | ) | ||||||
? | |||||||||||||||
Adjustments to reconcile net loss to net cash | |||||||||||||||
used in operating activities: | |||||||||||||||
Depreciation | 2,322,736 | 477,760 | 279,012 | ||||||||||||
Stock-based compensation | 1,010,081 | 717,547 | 1,347,585 | ||||||||||||
Accretion of discount on notes payable | 1,275,811 | 1,052,160 | 1,429,000 | ||||||||||||
Accretion of asset retirement obligation | (84,059 | ) | - | 3,750 | |||||||||||
Relief of debt | - | - | (90,968 | ) | |||||||||||
Foreign currency translation (gain) loss | - | - | (10,467 | ) | |||||||||||
(Gain) Loss on derivative instrument liabilities | (1,652,961 | ) | (3,295,947 | ) | 514,356 | ||||||||||
Gain on disposal of assets | - | 3,572 | 3,978 | ||||||||||||
Amortization of deferred financing costs | 98,317 | 89,026 | 61,154 | ||||||||||||
Net change in operating assets and liabilities: | |||||||||||||||
Accounts receivable | (2,230,605 | ) | - | - | |||||||||||
Interest receivable | - | - | 1,424 | ||||||||||||
Inventory | (175,578 | ) | - | - | |||||||||||
Prepaid expenses and other current assets | (11,856 | ) | (116,957 | ) | (47,806 | ) | |||||||||
Accounts payable and accrued liabilities | 2,288,996 | (649,991 | ) | 760,483 | |||||||||||
Deferred revenue | (388,734 | ) | - | - | |||||||||||
Accrued interest payable | ? | 234,584 | ? | ? | (4,294 | ) | ? | 5,377 | ? | ||||||
| ? | (1,930,361 | ) | ? | (2,936,478 | ) | ? | (1,278,718 | ) | ||||||
? | |||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||
Increase to restricted cash | - | - | (227,826 | ) | |||||||||||
Proceeds from disposal of assets | - | 31,400 | 68,184 | ||||||||||||
Purchase of marketable securities | (98,058 | ) | - | - | |||||||||||
Notes receivable and accrued interest | (203,422 | ) | - | - | |||||||||||
Purchase of property, plant and equipment | (1,072,217 | ) | (402,858 | ) | (2,433,639 | ) | |||||||||
Construction in progress | ? | (3,665,034 | ) | ? | (4,893,365 | ) | ? | (6,910,737 | ) | ||||||
| ? | (5,038,731 | ) | ? | (5,264,823 | ) | ? | (9,504,018 | ) | ||||||
? | |||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||
Proceeds from convertible notes payable | - | - | 8,150,000 | ||||||||||||
Proceeds from issuance of stock | 2,000,001 | 10,301,003 | 300,000 | ||||||||||||
Proceeds from notes payable | 77,306 | 212,762 | - | ||||||||||||
Proceeds from deferred revenue | - | 4,000,000 | - | ||||||||||||
Payment of private placement fees | (136,000 | ) | (625,000 | ) | - | ||||||||||
Payments on notes payable | (201,701 | ) | (238,369 | ) | (74,095 | ) | |||||||||
Payments on capital leases | (138,113 | ) | (130,811 | ) | (82,907 | ) | |||||||||
Payments on line of credit | - | - | (11,400 | ) | |||||||||||
Payments on convertible debenture notes | - | - | (244,770 | ) | |||||||||||
Payment of financing costs | ? | - | ? | ? | (288,000 | ) | ? | - | ? | ||||||
| ? | 1,601,493 | ? | ? | 13,231,585 | ? | ? | 8,036,828 | ? | ||||||
? | |||||||||||||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (5,367,599 | ) | 5,030,284 | (2,745,908 | ) | ||||||||||
? | |||||||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | ? | 5,540,130 | ? | ? | 509,846 | ? | ? | 3,255,754 | ? | ||||||
CASH AND CASH EQUIVALENTS, END OF YEAR | $ | 172,531 | ? | $ | 5,540,130 | ? | $ | 509,846 | ? | ||||||
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SUPPLEMENTAL CASH FLOW INFORMATION: | |||||||||||||||
Cash paid for interest | $ | 799,354 | ? | $ | 521,642 | ? | $ | 95,573 | ? | ||||||
? | |||||||||||||||
Cash paid for income taxes | $ | - | ? | $ | - | ? | $ | - | ? | ||||||
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SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND | |||||||||||||||
| |||||||||||||||
Stock issued for conversion of accrued interest | $ | - | ? | $ | 483,000 | ? | $ | 1,025,626 | ? | ||||||
? | |||||||||||||||
Stock issued for conversion of senior secured convertible notes | $ | - | ? | $ | - | ? | $ | 617,768 | ? | ||||||
? | |||||||||||||||
Stock issued for conversion of accrued liability | $ | - | ? | $ | 200,000 | ? | $ | - | ? | ||||||
? | |||||||||||||||
Stock issued for conversion of note payable | $ | - | ? | $ | 18,219 | ? | $ | - | ? | ||||||
? | |||||||||||||||
Equipment purchased with note payable | $ | - | ? | $ | 16,825 | ? | $ | 94,613 | ? | ||||||
? | |||||||||||||||
Equipment purchased with capital leases | $ | - | ? | $ | - | ? | $ | 480,744 | ? | ||||||
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Stock grants issued | $ | - | ? | $ | 765,000 | ? | $ | 308,130 | ? | ||||||
? | |||||||||||||||
Stock issued for services | $ | 16,550 | ? | $ | - | ? | $ | - | ? | ||||||
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Santa Fe Gold Corporation
W. Pierce Carson, President and Chief
Executive Officer
505-255-4852