SAS reports 2014 third quarter results and lowers its 2014 production cost estimates
All dollar amounts are stated in Canadian dollars, unless otherwise indicated
TORONTO, Nov. 12, 2014 /CNW/ - St Andrew Goldfields Ltd. (T-SAS) (OTCQX-STADF), ("SAS" or the "Company") reports net loss attributable to shareholders of $7.5 million, or $0.02 per share for Q3 2014. Included in this result is a one-time non-cash after-tax impairment loss on the Aquarius Project of $9.8 million or $0.03 per share and other one-time adjustments of $0.7 million (nil, on a per share basis). Excluding these items would result in adjusted net earnings (1) of $1.6 million, or nil, on a per share basis. For Q3 2013, net loss attributable to shareholders and adjusted net loss were $0.6 million and $0.9 million, respectively (both nil, on a per share basis).
SAS generated operating cash flow of $8.4 million, or $0.02 per share (1) in Q3 2014, a slight decline of $0.5 million from Q3 2013 despite a 17% decline in production, due to the depletion of reserves at the Hislop open pit. Gold production of 21,166 ounces in Q3 2014 exceeded the Company's expectation, as mining operations at Holloway continue and are expected to carry on well into 2015.
All-in sustaining cost per ounce of gold sold (1) was US$1,060 per ounce for Q3 2014, a 2% improvement over Q3 2013 with a total cash cost per ounce of gold sold (1) in the quarter of US$858 per ounce (including royalty costs of US$116 per ounce). Mine cash costs for Q3 2014 and YTD 2014 of US$742 and US$748 per ounce of gold sold, respectively, were below guidance of US$800 - US$850 per ounce. The Company is revising its mine cash cost guidance to between US$750 - US$800 per ounce for 2014.
The Company generated net cash flow (1) of $1.4 million in Q3 2014, after a $4.9 million investment in Taylor for the quarter. The Taylor exploration program is on schedule to extract a 21,000 tonne bulk sample in Q4 2014. Results from the underground drill program at the property to-date targeting the 1004 lens, have been positive.
"We had a better than expected quarter as mining at Holloway continued and is expected to continue well into 2015", said Duncan Middlemiss, President & CEO of SAS. "Our operating mines continue to generate positive cash flows; and we are very excited with the exploration success at the Zone 4 Extension program at Holt. Though preliminary at this stage, the discovery of gold mineralization along the trend between Zone 4 and the Tousignant Zone could potentially be significant in adding to the resource base at Holt and upgrading the value of this asset. We currently have 4 surface rigs at site to accelerate this drilling campaign. We will report on the results of this drill program in due course."
Q3 2014 Highlights
| Produced 21,166 ounces of gold from three operations (Holt, Holloway and Hislop). |
YTD 2014 production of 68,033 ounces. Production remains on track to meet the 2014 guidance of between 85,000 and 95,000 ounces. |
| Sold 21,728 ounces of gold at an average realized price of US$1,275 per ounce of gold sold (1) for revenues of $30.4 million. |
Gold sales revenue decreased by $5.9 million when compared to Q3 2013 due to a US$54 per ounce or 4% decline in gold price realized during the quarter, in conjunction with a 18% decrease in sales volume. |
| Mine cash costs of US$742 per ounce and a royalty cost of US$116 per ounce, for a total cash cost per ounce of gold sold (1) of US$858 per ounce. |
Mine cash costs increased by US$22 per ounce over Q3 2013 due primarily to a 17% decrease in production as reserves at the Hislop open pit were depleted. Mine cash costs for the quarter and YTD 2014 were well below the Company's guidance of US$800-US$850 per ounce for FY 2014. The Company is revising this guidance to between US$750 - US$800 per ounce for FY 2014. |
| All-in sustaining costs (1) of US$1,060 per ounce of gold sold. |
A decrease of US$26 per ounce when compared to Q3 2013. |
| Earned cash margin from mine operations (1) of $10.1 million and operating cash flow of $8.4 million or $0.02 per share (1). |
Net cash flow (1) of $1.4 million including amounts received from toll milling activities during the quarter. |
| Toll milled 34,981 tonnes of custom ore and earned revenue of $1.2 million. |
Revenue from toll milling of $1.2 million or US$52 per ounce of gold sold for the quarter reduced the overall processing cost to $21 per tonne milled. |
| Invested $4.9 million at Taylor to advance the underground exploration Program. |
The exploration program is on schedule to extract a 21,000- tonne bulk sample in Q4 2014. Results of definition drilling to-date continues to be positive. |
Q3 2014 Conference Call Information
The Company invites you to participate in the upcoming conference call to discuss its third quarter financial and operating results for 2014. The conference call will take place on Thursday November 13, 2014 at 10:00am EST.
Participants may join the call via webcast at www.sasgoldmines.com or call in toll free at 1-866-212-4491. A playback of the conference call will be available via the website and will be posted within 24 hours of the call. For more information regarding the Q3 2014 conference call, please visit the SAS website.
| Operating and Financial Summary | |||||||||
| Amounts in thousands of Canadian dollars, except per share and per unit amounts |
Q3 2014 | Q3 2013 | YTD 2014 | YTD 2013 | |||||
| SAS Operating Results | |||||||||
| Gold production (ounces) | 21,166 | 25,434 | 68,033 | 75,248 | |||||
| Commercial gold production sold (ounces) | 21,728 | 26,600 | 68,078 | 74,669 | |||||
| Per ounce data (US$) | |||||||||
| Average realized price (1) | $ | 1,275 | $ | 1,329 | $ | 1,285 | $ | 1,455 | |
| Mine cash costs | $ | 742 | $ | 720 | $ | 748 | $ | 763 | |
| Royalty costs | 116 | 112 | 114 | 124 | |||||
| Total cash cost (1) (2) | $ | 858 | $ | 832 | $ | 862 | $ | 887 | |
| Cash margin (1) | $ | 417 | $ | 497 | $ | 423 | $ | 568 | |
| All-in sustaining cost (1) | $ | 1,060 | $ | 1,086 | $ | 1,083 | $ | 1,194 | |
| SAS Financial Results | |||||||||
| Gold sales and total revenue (2) | $ | 30,430 | $ | 36,363 | $ | 95,576 | $ | 111,276 | |
| Cash margin from mine operations (1) | $ | 10,125 | $ | 13,381 | $ | 31,348 | $ | 43,505 | |
| Net income (loss) | $ | (7,495) | $ | (599) | $ | (8,748) | $ | (653) | |
| Adjusted net earnings (loss) (1) | $ | 1,635 | $ | (880) | $ | (414) | $ | (685) | |
| Operating cash flow | $ | 8,355 | $ | 8,880 | $ | 23,284 | $ | 29,628 | |
| Net cash flow (1) | $ | 1,412 | $ | 2,953 | $ | 246 | $ | 6,397 | |
| Per share information: | |||||||||
| Basic and diluted income (loss) | $ | (0.02) | $ | 0.00 | $ | (0.02) | $ | 0.00 | |
| Adjusted net earnings (loss) (1) | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | |
| Operating cash flow (1) | $ | 0.02 | $ | 0.02 | $ | 0.06 | $ | 0.08 | |
| SAS Financial Position | September 30, 2014 |
December 31, 2013 |
|||||||
| Cash and cash equivalents | $ | 21,176 | $ | 33,690 | |||||
| Working capital | $ | 10,133 | $ | 13,846 | |||||
| Total assets | $ | 190,543 | $ | 211,070 | |||||
| Total non-current financial liabilities | $ | 1,701 | $ | 3,295 | |||||
| (1) | These measures are non-GAAP measures which do not have standardized meanings prescribed by IFRS and are not necessarily comparable to similarly titled measures of other companies. Please refer to pages 9 - 14 of this news release for an explanation and reconciliation of these non-GAAP measures. |
| (2) | Excluded from gold sales and total revenue for Q3 2014 and YTD 2014 was revenue from toll milling of $1.2 million and $1.5 million, respectively. This revenue was deducted from the mining cash costs. |
Financial Performance
Revenues in Q3 2014 declined by $5.9 million when compared to Q3 2013 due to a 17% decrease in production as mine operations at Hislop ceased in Q2 2014; and a 4% decline in realized gold price. The decline in revenue was offset partially by $1.2 million earned on toll milling operations and a $1.4 million decrease in mine site operating costs and production royalty and led to a $3.3 million decrease in cash margin from mine operations (1). Despite a stronger US dollar relative to the Canadian dollar, total cash cost per ounce of gold sold (1) in Q3 2014 of US$858 per ounce, increased by US$26 per ounce from Q3 2013 primarily due to the increased use of cemented back-fill at Holt in 2014.
Holt Mine, Operations and Financial Review (see "Operating and Financial Statistics" on page 16)
During Q3 2014, the Holt Mine ("Holt") produced 15,087 ounces of gold, which is a 10% decrease from Q3 2013. Throughput decreased by 3% due to lower available shifts, as a result of the road closure due to flooding in the summer and the change in mine shaft conveyances in the quarter which resulted in a 10% decrease in production. Ore grades achieved for the quarter were 8% lower compared to Q3 2013 mainly because of higher production from lower grade areas. The ore grade achieved in the quarter remains above the reserve grade of 4.74 g/t Au for the mine.
Mine site costs in Q3 2014 increased by $18 per tonne of ore milled (1) from Q3 2013, substantially due to increased cemented backfill required for 2014 in the primary stopes. The increase in operating costs, offset by a stronger US dollar relative to the Canadian dollar, led to a US$107 per ounce increase in total cash cost per ounce of gold sold (1). In conjunction with a 4% decline in revenue due to the decrease in sales volume and realized price, cash margin from mine operations (1) for Q3 2014 decreased by 23% when compared to Q3 2013.
In Q3 2014, Holt contributed 88% of SAS' total cash margin from mine operations (1).
Holt is expected to contribute approximately 70% of the Company's total gold production for 2014.
Holloway Mine, Operations and Financial Review (see "Operating and Financial Statistics" on page 17)
Gold production at the Holloway Mine ("Holloway") increased by 29% in Q3 2014 when compared to Q3 2013, due to a 19% increase in throughput and a 6% improvement in ore grade. The increase of throughput in the quarter (despite the summer road closure) was due to higher productivities and additional ore discovered on the 945m Sublevel. Mill recoveries during the quarter were in line with expectations at approximately 92%.
When compared to Q3 2013, mine site costs for the quarter decreased by 9% to $119 per tonne of ore milled (1) (all development costs at the mine are charged to operations). Total cash cost per ounce of gold sold (1) during the quarter decreased by nearly 4% when compared to Q3 2013.
Holloway is expected to contribute approximately 25% of the Company's total gold production for 2014.
Hislop Mine, Operations and Financial Review (see "Operating and Financial Statistics" on page 18)
The open pit ore reserve for the Hislop Open Pit ("Hislop") was fully depleted in Q2 2014. In Q3 2014, the Company processed the remaining ore stockpile.
Taylor Project Update ("Taylor")
Ramp development continued throughout Q3 2014. The main ramp development totalling 1,410 metres is now completed, and the Company is preparing to extract the 21,000 tonne bulk sample from the 1004 lens as planned during Q4 2014. A total of 601 metres of lateral development and 44 metres of vertical development were completed during Q3 2014. The underground exploration program remains on schedule and results to date have been positive.
SAS recently completed fifty-three (53) drill holes collared from drill bays in the ramp development on the 220m, 250m and 305m Sublevel elevations, totaling 8,400 metres. Drilling targeted the easterly strike extension of the 1004 and 1006 lens resource blocks, situated within the West Porphyry Zone ("WPZ"), in the vicinity of the second proposed bulk sample. The results (released on September 11, 2014 and available under the Company's profile on www.sedar.com or on the Company's website at www.sasgoldmines.com) have provided additional information, which has been utilized to increase the Company's understanding of both the geological and structural setting in the east end of the 1004 lens and to confirm the tenor and orientation of the mineralization.
Exploration Projects
Exploration activities continued to follow up on targets throughout Q3 2014.
On October 9, 2014, SAS reported assay results for the first hole of the Holt Zone 4 Extension program, which commenced in June 2014. The objective of this surface drill program is to test for multiple flat-lying, en-echelon mineralized zones and ultimately targeting mineralization associated with the westerly strike projection of Zone 4 at Holt, which is the most significant production horizon at the mine. The mineralized intercept which occurred at the 1050m elevation, is associated with a shallow dipping zone situated approximately 200 metres north of the Ghostmount Fault zone, a major structural feature in the area. An examination of the core angles suggests that the true width of the mineralized zone is very close to the core length. Given the significant nature of the assay results returned to date from this program, SAS has added 3 drills to the program to accelerate the drilling of the Zone 4 extension. (please see the news release of October 9, 2014 which is available under the Company's profile on www.sedar.com or on the Company's website at www.sasgoldmines.com).
At Hislop North, surface drilling continued to test the southerly strike extension of the 147 Zone from the Primero Gold's property onto SAS ground. On September 11, 2014, SAS announced drill results which effectively traced the 147 Zone mineralization approximately 130 metres onto SAS property and to a depth of 500m below surface. (please see the news release of September 11, 2014 which is available under the Company's profile on www.sedar.com or on the Company's website at www.sasgoldmines.com). Surface drilling continued along the northern Hislop property boundary, aimed at following-up on the southerly strike extension of the 147 Zone.
A total of 9,900 metres of surface core drilling and 9,000 metres of underground exploration drilling were completed during Q3 2014. Year-to-date drilling consisted of 23,000 metres of surface core drilling and 26,200 metres of underground exploration drilling on the Company's targets. The 2014 field season saw SAS concentrate on geochemical sampling, trenching and mapping exercises on the SAS owned mineral claims situated in Cook and Guibord townships.
Capital Resources
Working capital as at September 30, 2014, was $10.1 million compared to a working capital of $13.8 million as at December 31, 2013. The decrease was primarily due to the classification of $2.0 million of asset retirement obligation as a current liability. At the end of Q3 2014, the Company had cash and cash equivalents of $21.2 million and access to additional cash by way of an undrawn US$10.0 million revolving credit facility from a chartered bank.
SAS expects to incur approximately $4.5 million in capital expenditures at the two underground mines and the Holt Mill during Q4 2014. The Company also plans to invest $3.7 million at Taylor in Q4 2014 to complete the bulk sample program. This investment is before proceeds of gold poured from processing the bulk sample. These capital programs will be financed by the Company's capital resources and anticipated operating cash flows.
Qualified Person
Mine development and production at the Holt, Holloway and Hislop mines, processing at the Holt Mill, and mine development activities at Taylor are being conducted under the supervision of Marc-Andre Pelletier, P.Eng, the Company's General Manager of Mine Operations.
Exploration activities on the Company's mineral properties, including the drilling program at Taylor, are under the supervision of Mr. Doug Cater, P. Geo, the Company's Vice-President of Exploration.
Messrs. Pelletier and Cater are qualified persons as defined by National Instrument 43-101, and have reviewed and approved this news release.
About SAS
SAS is a gold mining and exploration company with an extensive land package in the Timmins mining district, northeastern 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 and produced approximately 100,000 ounces of gold in 2013. The Company is also advancing the Taylor Project and is conducting aggressive exploration across 120km of land straddling the Porcupine-Destor Fault Zone.
Non-GAAP Measures
The Company has included the following non‐GAAP performance measures: adjusted net earnings (loss); total cash cost per ounce of gold sold; all-in sustaining cost per ounce of gold sold; mine site cost per tonne milled; cash margin from mine operations; average realized price per ounce of gold sold; cash margin per ounce of gold sold; net cash flow; and operating cash flow per share; 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 pages 10-15 of this news release for a discussion and the reconciliation of these non-GAAP measurements to the Company's Unaudited Condensed Interim Financial Statements for Q3 2014.
The Unaudited Balance Sheets, Statements of Operations and Statements of Cash Flows for the Company for the three months and the nine months ended September 30, 2014, can be found on pages 21-23.
To review the complete Unaudited Condensed Financial Statements for Q3 2014, and the Interim Management's Discussion and Analysis for Q3 2014, 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 | |||||||||
| Q1 2014 | January 1, 2014 - March 31, 2014 | Q1 2013 | January 1, 2013 - March 31, 2013 | |||||||||
| Q2 2014 | April 1, 2014 - June 30, 2014 | Q2 2013 | April 1, 2013 - June 30, 2013 | |||||||||
| Q3 2014 | July 1, 2014 - September 30, 2014 | Q3 2013 | July 1, 2013 - September 30, 2013 | |||||||||
| YTD 2014 | January 1, 2014 - September 30, 2014 | YTD 2013 | January 1, 2013 - September 30, 2013 | |||||||||
| Q4 2014 | October 1, 2014 - December 31, 2014 | Q4 2013 | October 1, 2013 - December 31, 2013 | |||||||||
| FY 2014 | January 1, 2014 - December 31, 2014 | FY 2013 | January 1, 2013 - December 31, 2013 | |||||||||
| Q4 2012 | October 1, 2012 - December 31, 2012 |
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 the Company's production and cash cost guidance for 2014; continued mining operation at Holloway; the relative production contributions from each of the operations; the level of capital expenditures at Holt, Holloway, the Holt Mill and Taylor; the continuation of advanced exploration at Taylor including the completion of a second bulk sample; and the continuance of the exploration program at Holt. In addition, mineral resources and mineral reserves constitute forward-looking information as they involve the assessment, based on certain estimates and assumptions, that such mineral resources and mineral reserves can be profitably produced in the future.
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, uncertainties relating to the interpretation of the geology, continuity, grade and size estimates of the mineral reserves and resources; unanticipated operational or technical difficulties which could escalate operating and/or capital costs and reduce anticipated production levels; the Company's dependence on key employees and changes in the availability of qualified personnel; fluctuations in gold prices and exchange rates; insufficient funding or delays or inability to raise additional financing on satisfactory terms if required; operational hazards and risks, including the inability to insure against all risks; changes in laws, regulations and the risks of obtaining necessary licenses and permits; changes in general economic conditions and changes in conditions in the financial markets. Such forward looking information is based on a number of assumptions, including but not limited to the level and volatility of the price of gold, the accuracy of reserve and resource estimates and the assumptions on which such estimates are based, the ability to achieve capital and operating cost estimates, the ability of the Company to retain and attract qualified personnel, the sufficiency of the Company's cash reserves and operating cash flow to complete planned development and exploration activities, the availability of additional financing on acceptable terms if and as required and the level of stability of 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 and 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 description of these risks and uncertainties can also be found in the Company's Annual Information Form obtained on SEDAR at www.sedar.com.
NON-GAAP MEASURES
Adjusted net earnings (loss)
Adjusted net earnings (loss) is a non-GAAP performance measure which does not constitute a measure recognized by IFRS and does not have a standardized meaning defined by IFRS. As well, it may not be comparable to information in other gold producers' reports and filings. Adjusted net earnings (loss) is calculated by removing the gains and losses, resulting from the mark-to-market revaluation of the Company's gold-linked liabilities and foreign currency 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. The Company discloses this measure, which is based on its Financial Statements, to assist in the understanding of the Company's operating results and financial position.
| Amounts in thousands of Canadian dollars, except per share amounts |
Q3 2014 | Q3 2013 | Q2 2014 | YTD 2014 | YTD 2013 | ||||||
| Net income (loss) per Financial Statements | $ | (7,495) | $ | (599) | $ | 553 | $ | (8,748) | $ | (653) | |
| Reversal of unrecognized deferred income tax assets | - | - | - | - | (1,256) | ||||||
| Mark-to-market loss (gain) on gold-linked liabilities | (116) | 709 | (56) | 284 | (1,002) | ||||||
| Mark-to-market loss (gain) on foreign currency derivatives | 280 | (1,084) | (1,128) | (603) | 974 | ||||||
| Impairment loss on available-for-sale investments | - | - | - | - | 500 | ||||||
| Loss (gain) on disposal of fixed assets | (4) | - | 149 | 145 | - | ||||||
| Impairment loss (1) | 13,110 | - | - | 13,110 | - | ||||||
| Write-down of investment in joint venture | - | - | - | - | 374 | ||||||
| Write-down of mining equipment | - | - | - | - | 620 | ||||||
| One-time accrual adjustment | (1,095) | - | - | (1,095) | - | ||||||
| Reversal of provision | - | - | - | (777) | - | ||||||
| Tax effect of above items | (3,045) | 94 | 296 | (2,730) | (242) | ||||||
| Adjusted net earnings (loss) | $ | 1,635 | $ | (880) | $ | (186) | $ | (414) | $ | (685) | |
| Weighted average number of shares outstanding (000s) | |||||||||||
| Basic | 368,296 | 368,293 | 368,296 | 368,296 | 368,261 | ||||||
| Diluted | 368,296 | 368,293 | 368,337 | 368,296 | 368,261 | ||||||
| Adjusted net earnings (loss) per share - basic and diluted | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | |
| (1) | After tax impairment loss for the three month and nine month period ended September 30, 2014 was $9.8 million or $0.03 per share (tax effect - $3.3 million) |
Total cash cost per ounce of gold sold
Total cash cost per ounce of gold sold is a non-GAAP performance measure which does not constitute a measure recognized by IFRS and does not have a standardized meaning defined by IFRS. As well, it 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 Statements:
| Amounts in thousands of Canadian dollars, except where indicated |
Q3 2014 | Q3 2013 | Q2 2014 | YTD 2014 | YTD 2013 | |||||
| Mine site operating costs per Financial Statements (1) | $ | 17,570 | $ | 19,876 | $ | 18,959 | $ | 55,718 | $ | 58,283 |
| Production royalties per Financial Statements | 2,735 | 3,106 | 2,758 | 8,510 | 9,488 | |||||
| Total cash costs | $ | 20,305 | $ | 22,982 | $ | 21,717 | $ | 64,228 | $ | 67,771 |
| Divided by gold ounces sold | 21,728 | 26,600 | 22,850 | 68,078 | 74,669 | |||||
| Total cash cost per ounce of gold sold (Canadian dollars) | $ | 935 | $ | 864 | $ | 950 | $ | 943 | $ | 908 |
| Average 1 USD → CAD exchange rate | $ | 1.09 | $ | 1.04 | $ | 1.09 | $ | 1.09 | $ | 1.02 |
| Total cash cost per ounce of gold sold (US$) | $ | 858 | $ | 832 | $ | 872 | $ | 862 | $ | 887 |
| (1) | Included in mine site operating costs was revenue from toll milling of $1.2 million and $1.5 million earned in Q3 2014 and YTD 2014, respectively (Q3 2013 and YTD 2013 -nil). |
All-in sustaining cost per ounce of gold sold
All-in sustaining cost per ounce of gold sold is a non-GAAP performance measure and does not constitute a measure recognized by IFRS and does not have a standardized meaning defined by IFRS. As well, it 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. All-in sustaining costs include mine-site operating costs and production royalties incurred at the Company's mining operations, sustaining capital expenditures (which the Company defines as any capital expenditures that are reinvested into the business to maintain the current level of operations), corporate administration expense, mine site exploration costs, and reclamation cost accretion. The Company believes that this measure represents the total costs of producing gold from current operations, and provides the Company and other stakeholders with additional information that illustrates the Company's operational performance and ability to generate cash flow. This cost measure is reported on a consolidated level and on a per-ounce of gold sold basis in accordance with the guidelines published by the World Gold Council. As the measure seeks to reflect the full cost of gold production from current operations, new project capital is not included. Certain other cash expenditures, including tax payments and financing costs are also not included.
| Amounts in thousands of Canadian dollars, except where indicated |
Q3 2014 | Q3 2013 | Q2 2014 | YTD 2014 | YTD 2013 | ||||||
| Mine site operating costs per Financial Statements (1) | $ | 17,570 | $ | 19,876 | $ | 18,959 | $ | 55,718 | $ | 58,283 | |
| Production royalties per Financial Statements | 2,735 | 3,106 | 2,758 | 8,510 | 9,488 | ||||||
| Add (less): | |||||||||||
| Sustaining mine capital | 3,243 | 3,781 | 3,921 | 11,514 | 12,532 | ||||||
| Mine site exploration | 289 | 1,630 | 207 | 722 | 5,165 | ||||||
| Mine reclamation obligation | 28 | 99 | 104 | 236 | 297 | ||||||
| Corporate administration | 1,210 | 1,492 | 1,402 | 3,974 | 5,445 | ||||||
| All-in sustaining costs | $ | 25,075 | $ | 29,983 | $ | 27,351 | $ | 80,674 | $ | 91,210 | |
| Divided by gold ounces sold | 21,728 | 26,600 | 22,850 | 68,078 | 74,669 | ||||||
| All-in sustaining cost per ounce of gold sold (Canadian dollars) | $ | 1,154 | $ | 1,127 | $ | 1,197 | $ | 1,185 | $ | 1,222 | |
| Average 1 USD → CAD exchange rate | $ | 1.09 | $ | 1.04 | $ | 1.09 | $ | 1.09 | $ | 1.02 | |
| All-in sustaining cost per ounce of gold sold (US$) | $ | 1,060 | $ | 1,086 | $ | 1,098 | $ | 1,083 | $ | 1,194 | |
| (1) | Included in mine site operating costs was revenue from toll milling of $1.2 million and $1.5 million earned in Q3 2014 and YTD 2014, respectively (Q3 2013 and YTD 2013 -nil). |
Mine site cost per tonne milled
Mine site cost per tonne milled is a non-GAAP performance measure and does not constitute a measure recognized by IFRS and does not have a standardized meaning defined by IFRS. As well, it 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 reduces 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 |
Q3 2014 | Q3 2013 | Q2 2014 | YTD 2014 | YTD 2013 | ||||||
| Holt Mine | |||||||||||
| Mine site costs per Financial Statements | $ | 11,223 | $ | 9,310 | $ | 10,915 | $ | 32,442 | $ | 27,144 | |
| Inventory adjustments (1) | (265) | 89 | 354 | 689 | 685 | ||||||
| Mine site operating costs | $ | 10,958 | $ | 9,399 | $ | 11,269 | $ | 33,131 | $ | 27,829 | |
| Divided by tonnes of ore milled | 101,826 | 104,800 | 106,282 | 321,387 | 287,866 | ||||||
| Mine site cost per tonne milled | $ | 108 | $ | 90 | $ | 106 | $ | 103 | $ | 97 | |
| Holloway Mine | |||||||||||
| Mine site costs per Financial Statements | $ | 5,335 | $ | 5,593 | $ | 5,506 | $ | 17,021 | $ | 15,667 | |
| Inventory adjustments (1) | 340 | (326) | (441) | 273 | 147 | ||||||
| Mine site operating costs | $ | 5,675 | $ | 5,267 | $ | 5,065 | $ | 17,294 | $ | 15,814 | |
| Divided by tonnes of ore milled | 47,651 | 40,152 | 40,932 | 131,565 | 129,046 | ||||||
| Mine site cost per tonne milled | $ | 119 | $ | 131 | $ | 124 | $ | 131 | $ | 123 | |
| Hislop Mine | |||||||||||
| Mine site costs per Financial Statements | $ | 1,012 | $ | 4,973 | $ | 2,538 | $ | 6,255 | $ | 15,472 | |
| Inventory adjustments (1) | (837) | (487) | (49) | (830) | (50) | ||||||
| Mine site operating costs | $ | 175 | $ | 4,486 | $ | 2,489 | $ | 5,425 | $ | 15,422 | |
| Divided by tonnes of ore milled | 1,747 | 66,940 | 47,785 | 81,530 | 234,804 | ||||||
| Mine site cost per tonne milled | $ | 100 | $ | 67 | $ | 52 | $ | 67 | $ | 66 | |
| Mine site costs per Financial Statements | |||||||||||
| Holt | $ | 11,223 | $ | 9,310 | $ | 10,915 | $ | 32,442 | $ | 27,144 | |
| Holloway | 5,335 | 5,593 | 5,506 | 17,021 | 15,667 | ||||||
| Hislop | 1,012 | 4,973 | 2,538 | 6,255 | 15,472 | ||||||
| $ | 17,570 | $ | 19,876 | $ | 18,959 | $ | 55,718 | $ | 58,283 | ||
| (1) | Inventory adjustment reflects production costs associated with unsold bullion and in-circuit inventory. |
| (2) | Included in mine site operating costs was revenue from toll milling of $1.2 million and $1.5 million earned in Q3 2014 and YTD 2014, respectively (Q3 2013 and YTD 2013 - nil). |
Cash margin from mine operations
Cash margin from mine operations is a non-GAAP measure and does not constitute a measure recognized by IFRS and does not have a standardized meaning defined by IFRS. As well, it 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 Statements. 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 | Q3 2014 | Q3 2013 | Q2 2014 | YTD 2014 | YTD 2013 | |||||||
| Gold sales per Financial Statements | [A] | $ | 30,430 | $ | 36,363 | $ | 31,665 | $ | 95,576 | $ | 111,276 | |
| Mine site operating costs per Financial Statements (1) | 17,570 | 19,876 | 18,959 | 55,718 | 58,283 | |||||||
| Production royalties per Financial Statements | 2,735 | 3,106 | 2,758 | 8,510 | 9,488 | |||||||
| [B] | 20,305 | 22,982 | 21,717 | 64,228 | 67,771 | |||||||
| Cash margin from mine operations | [A] - [B] | $ | 10,125 | $ | 13,381 | $ | 9,948 | $ | 31,348 | $ | 43,505 | |
| Breakdown of cash margin from mine operations by mines: | ||||||||||||
| Holt Mine | $ | 8,191 | $ | 10,677 | $ | 8,407 | $ | 27,419 | $ | 31,905 | ||
| Holloway Mine | 1,606 | 1,561 | 1,083 | 3,278 | 5,747 | |||||||
| Hislop Mine | 328 | 1,143 | 458 | 651 | 5,853 | |||||||
| $ | 10,125 | $ | 13,381 | $ | 9,948 | $ | 31,348 | $ | 43,505 | |||
| (1) | Included in mine site operating costs was revenue from toll milling of $1.2 million and $1.5 million earned in Q3 2014 and YTD 2014, respectively (Q3 2013 and YTD 2013 -nil). |
Average realized price per ounce of gold sold
Average realized price per ounce of gold sold is a non-GAAP measure and does not constitute a measure recognized by IFRS and does not have a standardized meaning defined by IFRS. Average realized price per ounce of gold sold 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 | Q3 2014 | Q3 2013 | Q2 2014 | YTD 2014 | YTD 2013 | ||||||
| Gold sales per Financial Statements | $ | 30,430 | $ | 36,363 | $ | 31,665 | $ | 95,576 | $ | 111,276 | |
| Foreign exchange gain realized on the settlement of gold sales | (250) | 47 | 192 | (846) | (497) | ||||||
| Gain (loss) on foreign currency derivative cash flow hedges realized | 13 | 235 | 158 | 400 | 406 | ||||||
| $ | 30,193 | $ | 36,645 | $ | 32,015 | $ | 95,130 | $ | 111,185 | ||
| Average 1 USD → CAD exchange rate | 1.09 | 1.04 | 1.09 | 1.09 | 1.02 | ||||||
| Gold sales recorded in US$ | $ | 27,714 | $ | 35,346 | $ | 29,353 | $ | 87,473 | $ | 108,676 | |
| Divided by gold ounces sold | 21,728 | 26,600 | 22,850 | 68,078 | 74,669 | ||||||
| Average realized price per ounce of gold sold (US$) | $ | 1,275 | $ | 1,329 | $ | 1,285 | $ | 1,285 | $ | 1,455 | |
Cash margin per ounce of gold sold
Cash margin per ounce of gold sold is a non-GAAP measure and does not constitute a measure recognized by IFRS and does not have a standardized meaning defined by IFRS. Cash margin per ounce of gold sold 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 States dollars | Q3 2014 | Q3 2013 | Q2 2014 | YTD 2014 | YTD 2013 | ||||||||
| Per ounce of gold sold: | |||||||||||||
| Average realized price per ounce of gold sold | [A] | $ | 1,275 | $ | 1,329 | $ | 1,285 | $ | 1,285 | $ | 1,455 | ||
| Total cash cost per ounce of gold sold | [B] | 858 | 832 | 872 | 862 | 887 | |||||||
| Cash margin per ounce of gold sold | [A] - [B] | $ | 417 | $ | 497 | $ | 413 | $ | 423 | $ | 568 | ||
Net cash flow
Net cash flow is a non-GAAP measure and does not constitute a measure recognized by IFRS and does not have a standardized meaning defined by IFRS. Net cash flow is calculated by taking cash flow from operating activities less cash used in investing activities as reported in the Company's Financial Statements. It may not be comparable to information in other gold producers' reports and filings.
| Amounts in thousands of Canadian dollars | Q3 2014 | Q3 2013 | Q2 2014 | YTD 2014 | YTD 2013 | |||||||
| Cash flow from operating activities per Financial Statements | $ | 8,355 | $ | 8,880 | $ | 5,461 | $ | 23,284 | $ | 29,628 | ||
| Less: | ||||||||||||
| Cash used in investing activities per Financial Statements | 6,943 | 5,927 | 8,108 | 23,038 | 23,231 | |||||||
| $ | 1,412 | $ | 2,953 | $ | (2,647) | $ | 246 | $ | 6,397 | |||
Operating cash flow per share
Operating cash flow per share is a non-GAAP measure and does not constitute a measure recognized by IFRS and does not have a standardized meaning defined by IFRS. Operating cash flow per share is calculated by dividing cash flow from operating activities in the Company's Financial Statements 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 |
Q3 2014 | Q3 2013 | Q2 2014 | YTD 2014 | YTD 2013 | |||||
| Cash flow from operating activities per Financial Statements | $ | 8,355 | $ | 8,880 | $ | 5,461 | $ | 23,284 | $ | 29,628 |
| Weighted average number of shares outstanding (000s) | 368,296 | 368,293 | 368,296 | 368,296 | 368,261 | |||||
| Operating cash flow per share | $ | 0.02 | $ | 0.02 | $ | 0.01 | $ | 0.06 | $ | 0.08 |
| Operating and Financial Statistics - Holt Mine | |||||||||||
| Amounts in thousands of Canadian dollars, except per unit amounts |
Q3 2014 | Q3 2013 | Q2 2014 | YTD 2014 | YTD 2013 | ||||||
| Tonnes milled | 101,826 | 104,800 | 106,282 | 321,387 | 287,866 | ||||||
| Head grade (g/t Au) | 4.82 | 5.25 | 4.70 | 4.87 | 5.16 | ||||||
| Average mill recovery | 95.5% | 95.0% | 94.2% | 94.7% | 94.9% | ||||||
| Gold produced (ounces) | 15,087 | 16,807 | 15,140 | 47,724 | 45,319 | ||||||
| Commercial gold production sold (ounces) | 15,400 | 16,381 | 15,534 | 47,450 | 44,326 | ||||||
| Gold sales revenue | $ | 21,572 | $ | 22,417 | $ | 21,521 | $ | 66,634 | $ | 66,032 | |
| Cash margin from mine operations (1) | $ | 8,191 | $ | 10,677 | $ | 8,407 | $ | 27,419 | $ | 31,905 | |
| Mine site cost per tonne milled (1) | $ | 108 | $ | 90 | $ | 106 | $ | 103 | $ | 97 | |
| Total cash cost per ounce of gold sold (US dollars) (1) | |||||||||||
| Mine cash costs * | $ | 669 | $ | 548 | $ | 644 | $ | 625 | $ | 598 | |
| Royalty costs | 129 | 143 | 130 | 130 | 154 | ||||||
| Total cash cost per ounce of gold sold | $ | 798 | $ | 691 | $ | 774 | $ | 755 | $ | 752 | |
| Capital expenditures | $ | 2,699 | $ | 3,104 | $ | 3,608 | $ | 10,379 | $ | 9,974 | |
| Depreciation and depletion expense | $ | 3,299 | $ | 2,338 | $ | 2,749 | $ | 8,842 | $ | 7,714 | |
| * Net of toll mill revenue allocated to each of SAS's mine operations | |||||||||||
| (1) | Total cash cost per ounce of gold sold, mine site cost per tonne milled and cash margin from mine operations are non-GAAP measures which do not have standardized meanings as prescribed by IFRS and are not necessarily comparable to similarly titled measures of other companies due to potential inconsistencies in the method of calculation (see pages 10-14 for an explanation and reconciliation of non-GAAP measurements). |
| Operating and Financial Statistics - Holloway Mine | |||||||||||
| Amounts in thousands of Canadian dollars, except per unit amounts |
Q3 2014 | Q3 2013 | Q2 2014 | YTD 2014 | YTD 2013 | ||||||
| Tonnes milled | 47,651 | 40,152 | 40,932 | 131,565 | 129,046 | ||||||
| Head grade (g/t Au) | 4.27 | 4.02 | 4.09 | 4.17 | 4.13 | ||||||
| Average mill recovery | 91.8% | 89.7% | 90.9% | 91.0% | 91.4% | ||||||
| Gold produced (ounces) | 5,999 | 4,662 | 4,893 | 16,046 | 15,676 | ||||||
| Commercial gold production sold (ounces) | 5,356 | 5,741 | 5,157 | 15,688 | 16,042 | ||||||
| Gold sales revenue | $ | 7,518 | $ | 7,831 | $ | 7,149 | $ | 22,035 | $ | 23,920 | |
| Cash margin from mine operations (1) | $ | 1,606 | $ | 1,561 | $ | 1,083 | $ | 3,278 | $ | 5,747 | |
| Mine site cost per tonne milled (1) | $ | 119 | $ | 131 | $ | 124 | $ | 131 | $ | 123 | |
| Total cash cost per ounce of gold sold (US dollars)(1) | |||||||||||
| Mine cash costs * | $ | 915 | $ | 938 | $ | 979 | $ | 991 | $ | 953 | |
| Royalty costs | 99 | 114 | 100 | 101 | 154 | ||||||
| Total cash cost per ounce of gold sold | $ | 1,014 | $ | 1,052 | $ | 1,079 | $ | 1,092 | $ | 1,107 | |
| Capital expenditures | $ | 290 | $ | 816 | $ | 270 | $ | 810 | $ | 2,917 | |
| Depreciation and depletion expense | $ | 625 | $ | 4,843 | $ | 3,266 | $ | 11,216 | $ | 9,136 | |
| * Net of toll mill revenue allocated to each of SAS's mine operations | |||||||||||
| (1) | Total cash cost per ounce of gold sold, mine site cost per tonne milled and cash margin from mine operations, are non-GAAP measures which do not have standardized meanings as prescribed by IFRS and are not necessarily comparable to similarly titled measures of other companies due to potential inconsistencies in the method of calculation (see pages 10-14 hereof for an explanation and reconciliation of non-GAAP measurements). |
| Operating and Financial Statistics - Hislop Mine | |||||||||||
| Amounts in thousands of Canadian dollars, except per unit amounts |
Q3 2014 | Q3 2013 | Q2 2014 | YTD 2014 | YTD 2013 | ||||||
| Overburden stripped (m3) | - | 43,094 | - | - | 107,091 | ||||||
| Tonnes mined (ore) | - | 92,378 | 28,851 | 79,971 | 280,639 | ||||||
| (waste) | - | 389,978 | 5,000 | 223,712 | 970,589 | ||||||
| - | 482,356 | 33,851 | 303,683 | 1,251,228 | |||||||
| Waste-to-Ore Ratio | - | 4.2 | 0.2 | 2.8 | 3.5 | ||||||
| Tonnes milled | 1,747 | 66,940 | 47,785 | 81,530 | 234,804 | ||||||
| Head grade (g/t Au) | 1.76 | 2.27 | 2.14 | 2.12 | 2.29 | ||||||
| Average mill recovery | 81.2% | 81.0% | 75.1% | 76.8% | 82.5% | ||||||
| Gold produced (ounces) | 80 | 3,965 | 2,472 | 4,263 | 14,253 | ||||||
| Commercial gold production sold (ounces) | 972 | 4,478 | 2,159 | 4,940 | 14,301 | ||||||
| Gold sales revenue | $ | 1,340 | $ | 6,115 | $ | 2,995 | $ | 6,907 | $ | 21,324 | |
| Cash margin from mine operations (1) | $ | 328 | $ | 1,143 | $ | 458 | $ | 651 | $ | 5,853 | |
| Mine site cost per tonne milled (1) (3) | $ | 100 | $ | 67 | $ | 52 | $ | 67 | $ | 66 | |
| Total cash cost per ounce of gold sold (US Dollars)(1)(2)(3) | $ | 957 | $ | 1,070 | $ | 1,079 | $ | 1,157 | $ | 1,058 | |
| Capital expenditures | $ | - | $ | 20 | $ | - | $ | - | $ | 20 | |
| Depreciation and depletion expense | $ | 88 | $ | 2,364 | $ | 126 | $ | 289 | $ | 9,840 | |
| Notes: | |
| (1) | Total cash cost per ounce of gold sold, mine site cost per tonne milled and cash margin from mine operations are non-GAAP measures which do not have standardized meanings as prescribed by IFRS and are not necessarily comparable to similarly titled measures of other companies due to potential inconsistencies in the method of calculation (see pages 10-14 hereof for an explanation and reconciliation of non-GAAP measurements). |
| (2) | Hislop is subject to a 4% net smelter return royalty, which includes a minimum Advance royalty payment obligation (see "Gold-linked Liabilities" in the Company's Q3 2014 MD&A). |
| (3) | Net of toll milling revenue allocated to each of SAS' mine operations. |
Statements of Operations (unaudited)
St Andrew Goldfields Ltd.
Expressed in thousands of Canadian dollars except per share information
| Three months ended September 30, | Nine months ended September 30, | |||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||
| Gold sales | $ | 30,430 | $ | 36,363 | $ | 95,576 | $ | 111,276 | ||||
| Operating costs and expenses: | ||||||||||||
| Mine site operating | 17,570 | 19,876 | 55,718 | 58,283 | ||||||||
| Production royalty | 2,735 | 3,106 | 8,510 | 9,488 | ||||||||
| Site maintenance | 21 | 13 | 29 | 173 | ||||||||
| Exploration | 1,380 | 1,932 | 3,808 | 7,042 | ||||||||
| Corporate administration | 1,210 | 1,492 | 3,974 | 5,445 | ||||||||
| Depreciation and depletion | 4,243 | 9,770 | 21,033 | 27,358 | ||||||||
| Loss (gain) on disposal of fixed assets | (4) | - | 145 | - | ||||||||
| Impairment charges | 13,110 | 13,110 | ||||||||||
| Write-down of investment in joint venture | - | - | - | 374 | ||||||||
| Write-down of mining equipment | - | - | - | 620 | ||||||||
| 40,265 | 36,189 | 106,327 | 108,783 | |||||||||
| Operating income (loss) | (9,835) | 174 | (10,751) | 2,493 | ||||||||
| Finance costs | 253 | 498 | 1,222 | 1,499 | ||||||||
| Mark-to-market (gain) loss on gold-linked liabilities | (116) | 709 | 284 | (1,002) | ||||||||
| Mark-to-market (gain) loss on foreign currency derivatives | 280 | (1,084) | (603) | 974 | ||||||||
| Foreign exchange loss | 44 | 276 | 1,285 | 591 | ||||||||
| Impairment loss on available-for-sale investments | - | - | - | 500 | ||||||||
| Finance income and other | (1,147) | (74) | (2,087) | (229) | ||||||||
| (686) | 325 | 101 | 2,333 | |||||||||
| Income (loss) before taxes | (9,149) | (151) | (10,852) | 160 | ||||||||
| Net deferred tax expense (recovery) | (1,654) | 448 | (2,104) | 813 | ||||||||
| Net income (loss) attributable to shareholders | $ | (7,495) | $ | (599) | $ | (8,748) | $ | (653) | ||||
| Other comprehensive income (loss) | ||||||||||||
| Unrealized gain (loss) on available-for-sale investments (nil tax effect) |
32 | 55 | 147 | (76) | ||||||||
| Reclassification adjustment for impairment loss on available-for- sale investments (nil tax effect) |
- | - | - | 500 | ||||||||
| Unrealized gain (loss) on derivatives designated as cash flow hedges, net of tax of ($9), $371, $25 , ($175) |
(29) | 923 | 75 | (716) | ||||||||
| Reclassification adjustment for unrealized loss on the ineffective portion of cash flow hedges, net of tax $64 |
- | 192 | - | 192 | ||||||||
| 3 | 1,170 | 222 | (100) | |||||||||
| Comprehensive income (loss) for the period | $ | (7,492) | $ | 571 | $ | (8,526) | $ | (753) | ||||
| Basic and diluted income (loss) per share | $ | (0.02) | $ | 0.00 | $ | (0.02) | $ | 0.00 | ||||
| Weighted average number of shares outstanding (000's) | ||||||||||||
| Basic | 368,296 | 368,293 | 368,296 | 368,261 | ||||||||
| Diluted | 368,296 | 368,293 | 368,296 | 368,261 | ||||||||
Statements of Cash Flows (unaudited)
St Andrew Goldfields Ltd.
Expressed in thousands of Canadian dollars
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||
| 2014 | 2013 | 2014 | 2013 | ||||||||||
| Operating activities: | |||||||||||||
| Net loss for the period | $ | (7,495) | $ | (599) | $ | (8,748) | $ | (653) | |||||
| Items not affecting cash: | |||||||||||||
| Net deferred tax expense (recovery) | (1,654) | 448 | (2,104) | 813 | |||||||||
| Mark-to-market loss (gain) on gold-linked liabilities | (116) | 709 | 284 | (1,002) | |||||||||
| Non-cash interest | 206 | 359 | 973 | 1,083 | |||||||||
| Mark-to-market loss (gain) on foreign currency derivatives | 280 | (1,084) | (603) | 974 | |||||||||
| Depreciation and depletion | 4,243 | 9,770 | 21,033 | 27,358 | |||||||||
| Reversal of provision | - | - | (777) | - | |||||||||
| Impairment loss on available-for-sale investments | 13,110 | 13,110 | - | ||||||||||
| Write-down of investment in joint venture | - | - | - | 374 | |||||||||
| Write-down of mining equipment and investment | - | - | - | 620 | |||||||||
| Impairment loss on available-for-sale investments | - | - | - | 500 | |||||||||
| Loss (gain) on disposal of fixed assets | (4) | - | 145 | - | |||||||||
| Share-based payments | 82 | 237 | 272 | 823 | |||||||||
| Net change in non-cash operating working capital and other | (273) | (847) | (129) | (908) | |||||||||
| Interest paid | (24) | (113) | (172) | (354) | |||||||||
| Cash provided by operating activities | 8,355 | 8,880 | 23,284 | 29,628 | |||||||||
| Investing activities: | |||||||||||||
| Additions to exploration and evaluation assets | (4,576) | (1,069) | (12,686) | (6,231) | |||||||||
| Mine development expenditures | (1,782) | (3,263) | (6,392) | (9,957) | |||||||||
| Additions to plant and equipment | (1,815) | (1,082) | (5,737) | (4,719) | |||||||||
| Amounts payable on capital additions | 1,242 | (496) | 1,737 | (1,925) | |||||||||
| Reclamation costs and other | (17) | (17) | (50) | (376) | |||||||||
| Proceeds on disposal of fixed assets | 5 | - | 90 | - | |||||||||
| Cash collateralized for banking facilities | - | - | - | (23) | |||||||||
| Cash used in investing activities | (6,943) | (5,927) | (23,038) | (23,231) | |||||||||
| Financing activities: | |||||||||||||
| Advance royalty payments | - | (411) | (708) | (1,383) | |||||||||
| Capital lease payments | (265) | (186) | (805) | (449) | |||||||||
| Repayment of term credit facility | - | (2,060) | (9,815) | (4,092) | |||||||||
| Cash used in financing activities | (265) | (2,657) | (11,328) | (5,924) | |||||||||
| Effects of exchange rate changes on cash and cash equivalents | (34) | (237) | (1,432) | 430 | |||||||||
| Increase (decrease) in cash and cash equivalents | 1,113 | 59 | (12,514) | 903 | |||||||||
| Cash and cash equivalents, beginning of period | 20,063 | 31,500 | 33,690 | 30,656 | |||||||||
| Cash and cash equivalents, end of period | $ | 21,176 | $ | 31,559 | $ 21,176 | $ | 31,559 | ||||||
Balance Sheets (unaudited)
St Andrew Goldfields Ltd.
Expressed in thousands of Canadian dollars
| September 30, 2014 | December 31, 2013 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 21,176 | $ | 33,690 | |||
| Accounts receivable | 2,949 | 951 | |||||
| Inventories | 9,042 | 8,638 | |||||
| Prepayments and other assets | 398 | 193 | |||||
| 33,565 | 43,472 | ||||||
| Exploration and evaluation assets | 45,097 | 38,390 | |||||
| Producing properties | 41,461 | 49,751 | |||||
| Plant and equipment | 37,197 | 49,025 | |||||
| Reclamation deposits | 8,423 | 8,373 | |||||
| Restricted cash | 1,695 | 1,695 | |||||
| Deferred tax assets | 22,823 | 20,228 | |||||
| Other assets | 282 | 136 | |||||
| $ | 190,543 | $ | 211,070 | ||||
| Liabilities and Shareholders' Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable and other liabilities | $ | 12,185 | $ | 9,793 | |||
| Employee-related liabilities | 4,387 | 5,241 | |||||
| Royalties payable | 1,208 | 956 | |||||
| Provisions | - | 777 | |||||
| Derivative liabilities | 403 | 1,105 | |||||
| Current portion of long-term debt | 3,242 | 11,754 | |||||
| Current portion of asset retirement obligations | 2,007 | - | |||||
| 23,432 | 29,626 | ||||||
| Long-term debt | 1,701 | 3,295 | |||||
| Asset retirement obligations | 6,830 | 12,023 | |||||
| Deferred tax liabilities | 2,846 | 2,330 | |||||
| 34,809 | 47,274 | ||||||
| Shareholders' equity: | |||||||
| Share capital | 98,575 | 98,575 | |||||
| Contributed surplus | 20,844 | 20,317 | |||||
| Stock options | 4,204 | 4,267 | |||||
| Retained earnings | 32,030 | 40,778 | |||||
| Accumulated other comprehensive loss | 81 | (141) | |||||
| 155,734 | 163,796 | ||||||
| $ | 190,543 | $ | 211,070 | ||||
SOURCE: St Andrew Goldfields Ltd.
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
Duncan Middlemiss
President & CEO
Email: [email protected]
Ben Au
CFO, VP Finance & Administration
Email: [email protected]
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