Brigus Gold Reports Third Quarter Financial Results
Brigus Gold Corp. ("Brigus" or the
"Company") (NYSE MKT:
BRD) (TSX:
BRD)
today reported financial results
for the third quarter ended September 30, 2013.
"Brigus delivered strong operating and financial results during quarter
three. The Black Fox mine achieved record gold production while costs
on a per ounce basis were at an all-time low, and lower than
guidance.Moving forward, our top priorities continue to be safe
production, cost management, and disciplined capital allocation,"
commented Wade Dawe, Brigus' Chairman and Chief Executive Officer. "I
am proud of our team's operational performance and the fact that our
workforce has worked over 1,400 days without a lost time incident."
Third Quarter 2013 Financial Highlights
--
Sold 28,344 ounces of gold, a 49% increase over Q3 2012
--
Cash costs of $617 and All in Sustaining Costs (AISC) of $992 per ounce
of gold sold (40% reduction)
--
Made long-term debt repayments of $4.9 million
--
Revenue of $36.9 million, a 22% increase over Q3 2012
--
Adjusted cash flow from operations of $15.5 million, a 38% increase over
Q3 2012
Third Quarter 2013 Operational Highlights
--
Produced 27,174 ounces of gold, a 39% increase over Q3 2012
--
Processed 207,559 tonnes of ore (2,256 tonnes per day) at 4.34 grams per
tonne and a 94% recovery
--
Averaged 811 tonnes per day from underground at an average grade of 5.69
grams per tonne
During the third quarter of 2013, income from mining operations was $5.9
million. AISC per ounce for the third quarter was $992 per ounce,
compared to $1,649 in the third quarter of 2012, a decline of $657 or
40%. Cash costs per ounce decreased by 15% from $728 per ounce in Q3
2012 to $617 per ounce in Q3 2013.
During the quarter the Company's cash balance increased to $21.1
million, compared to $20.9 million at the end of the previous quarter,
while the balance sheet was strengthened as long term debt was reduced. Income from mining operations on a year-to-date basis totalled $18.8
million, an increase of $4.7 million compared to the same period in
2012.The increase relates to the 47% increase in ounces sold and an
11% decrease in cash costs, offset by a 10% decrease in the average
realized gold price and 58% increase in depreciation and amortization
expense.
Total liabilities decreased by $23.7 million, from $188.7 million as of
December 31, 2012, to $165.0 million as of September 30, 2013, and
shareholders' equity increased from $232.6 million to $243.8 million
year to date.
Cost management continues to be a key focus for the Company.The Company
expects capital spending for mine development and other sustaining
capital to total $38.5 million in 2013, down from the original estimate
of $41.5 million in Q1 2013. The Company reviewed its long-term
capital requirements and is forecasting total capital spending on mine
development and sustaining capital of $20 - $25 million in 2014.
During the quarter, the Company announced an updated independent NI
43-101 resource estimate for the 147, Contact, and Grey Fox South
zones. The resource estimate included a constraining pit shell which
had not been included in the previous resource estimates.Highlights
include a total of 507,400 indicated ounces (255,000 relating to the
underground and 252,400 relating to the open pit) and 228,600 inferred
ounces (184,800 relating to the underground and 43,800 relating to the
open pit). The underground and open pit cut-off grades were set at
2.84 grams per tonne and 0.72 grams per tonne, respectively. The 147,
Contact and Grey Fox South zones remain open for future expansion and
drilling continues.
At Grey Fox, Brigus completed an additional 21,458 metres (46 drill
holes) of drilling since the June 30th cut-off date and initiated additional metallurgical studies to increase
gold recoveries from the 83 percent threshold, as previously
reported. Initial results from the ongoing test work have been
favourable. The Company is now planning to release a Preliminary
Economic Assessment for Grey Fox during the second quarter of 2014.
Exploration
Subsequent to quarter end, the Company released
two high grade gold
intersections from underground drilling at Black Fox. Hole 645-34-W
assayed 18.09 grams per tonne gold over 37.80 metres, including 39.45
grams per tonne gold over 10.35 metres. This 37.80 metre mineralized
intercept is from a drill interval of 316.9 to 354.7 metres, and
remains open as the last sample at 354.7 metres graded 15.34 grams per
tonne gold. Therefore, the full thickness of this high grade intercept
is unknown at this time. Hole 645-34-W intersected high grade
mineralization 30 metres to the west of hole 645-01-W, which assayed
40.71 grams per tonne gold over 26.75 metres, including 103.20 grams
per tonne gold over 8.35 metres.In light of these positive exploration
results, we have recommenced underground exploration drilling at Black
Fox. 12 to 15 holes are planned and will target this new high grade
zone.
Third Quarter Webcast and Conference Call
A webcast and conference call will be held on Wednesday, November 13th at noon Atlantic Time (11:00 a.m. Eastern Time).
Analysts and other interested parties wanting to participate in the call
should dial 1-877-407-8133 (international 201-689-8040) at least 10
minutes prior to the start of the call. No pass code is required. The
teleconference will be recorded. If you are unable to join the
teleconference live, you can dial for playback, toll-free at
1-877-660-6853 (international 201-612-7415), please use conference ID
100499. The event will be archived and available for replay until
midnight on November 27, 2013. The teleconference will also be
accompanied by a presentation made available on the Company's website
at www.brigusgold.com.
This release should be read in conjunction with Brigus' 2013
third
quarter Financial Statements and Management's Discussion and Analysis
report at www.brigusgold.com. Brigus' unaudited 2013 third quarter
Financial Statements and
Management's Discussion and Analysis have been filed with Canadian
securities regulators (available at www.sedar.com) and with the U.S
Securities and Exchange Commission (available at www.sec.gov). Brigus
shareholders may obtain a copy of the financial documents free
of charge upon request to the Company.
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 Mine and Mill in the Timmins Gold District of Ontario, Canada. The
Black Fox Complex encompasses the Black Fox Mine and adjoining
properties in the Township of Black River‐Matheson, Ontario, Canada.
Brigus also owns the Goldfields Project located near Uranium City,
Saskatchewan, Canada, which hosts the Box and Athona gold deposits. In
the Dominican Republic, Brigus has signed an agreement to sell its
remaining interests in three mineral exploration projects. In Mexico,
Brigus owns the Ixhuatan Project located in the state of Chiapas.
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.
Cautionary and Forward‐Looking Statements
Statements contained in this news release, which are not historical
facts, are forward‐looking statements that involve risks, 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, total cash costs, steady state annual production and mining
rate estimates; estimated average gold grades for the open pit and
underground operations; increase in gold production; increase in
profitability; exploration drill results and resource additions, are
forward‐looking statements and estimates that involve various risks and
uncertainties. This forward‐ looking statements include, 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'
most recent Annual Information Form and Management Discussion and
Analysis filed under the Company's name at www.sedar.com and annual report on Form 40F filed with the United States Securities
and Exchange Commission at www.sec.gov as well as elsewhere in Brigus' 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.
SOURCE Brigus Gold Corp.
In Q3 Brigus produced a record 22,000 oz and is on track to exceed 100,000 oz producion per year for the forseeable future. Resource base has grown to over 2 million oz.
