(all in US$ unless otherwise noted)
Q1 2020 Highlights and Recent Key Developments
- Q1 2020 Consolidated Gold production 1 of 16,406 ounces at cash costs 1,2 of
$1,276 /oz produced. - Announced a merger with Argonaut Gold (“Argonaut”) on
March 30, 2020 . - Closing of the sale of the
San Francisco Mine to Magna Gold Corp. (“Magna Gold”) onMay 6, 2020 . Florida Canyon Q1 2020 operational metrics continue to improve; 30% more gold deposited, and 21% more gold produced versus Q4 2019.- Cash and cash equivalents of
$10.4 million , and net working capital 3 of$41.5 million as ofMarch 31, 2020 .
“Our focus, like everyone’s, recently has been on the health and safety of our employees, contractors and communities in light of the COVID-19 pandemic,” said
Production and Financial Summary from continuing operations
($ thousands, except where indicated) | Three months ended | ||||
2020 | 2019 | ||||
Gold produced (ounces) | 11,182 | 12,263 | |||
Gold sold (ounces) | 9,901 | 12,201 | |||
Metal revenues ($) | 15,571 | 16,081 | |||
Loss from operations ($) | (1,445 | ) | (229 | ) | |
Loss and comprehensive loss ($) | (2,096 | ) | (381 | ) | |
Loss per share, basic ($) | (0.02 | ) | (0.00 | ) | |
Cash flows (used in) provided by operating activities a,b ($) | (3,013 | ) | 2,525 | ||
By-product cash costs 2 (per ounce produced) ($) | 1,276 | 1,076 | |||
AISC 4 (per ounce produced) ($) | 1,472 | 1,267 | |||
By-product cash costs 2 (per ounce sold) ($) | 1,313 | 1,094 | |||
AISC 4 (per ounce sold) ($) | 1,534 | 1,278 | |||
Average realized gold price per gold ounce c ($) | 1,582 | 1,307 | |||
a After changes in non-cash working capital b Includes cash flow from discontinued operations c The average realized gold price includes realized (loss) gain on derivatives | |||||
The Company’s focus is on finalizing the ramp up of operations at
During Q1 2020, the
Ore placed on the pad during Q1 2020 was in line with Q4 2019. Ore processed during Q1 2020 increased by 30% as a result of a 35% higher grade compared to Q4 2019. Metallurgical recovery continues to meet expectation.
Total operating costs per tonne processed remains low at
The construction of the new heap leach pad (“SHLP II”) continued to advance during Q1 2020. Capital expenditures for SHLP II totalled
Processing of the low-grade stockpile ceased
Cash flow from operations during Q1 2020 were used to pay down existing payables.
The Company entered into a definitive share purchase agreement to sell the
Financial performance
Please refer to the Company's financial statements, related notes and accompanying Management Discussion and Analysis for a full review of the
About
Footnotes:
1) Production and costs include the
2) Non-GAAP Measures: Cash cost per gold ounce and cash cost per gold ounce on a by-product basis.
Cash cost per gold ounce and cash cost per gold ounce on a by-product basis are non-GAAP performance measures that management uses to assess the Company’s performance and its expected future performance. The Company has included the non-GAAP performance measures of cash cost per gold ounce and cash cost per gold ounce on a by-product basis throughout this document. In the gold mining industry, these are common performance measures but they do not have any standardized meaning. As such, they are unlikely to be comparable to similar measures presented by other issuers.
Management believes that, in addition to conventional measures prepared in accordance with GAAP, certain investors use this information to evaluate the Company’s performance and ability to generate cash flow. Accordingly, presentation of these measures is to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.
The cash cost per gold ounce produced is calculated by dividing the operating production costs by the total number of gold ounces produced. The cash cost per gold ounce produced on a by-product basis is calculated by deducting the by-product silver credits per gold ounce produced from the cash cost per gold ounce produced.
The cash cost per gold ounce sold is calculated by dividing the operating production costs by the total number of gold ounces sold. The cash cost per gold ounce sold on a by-product basis is calculated by deducting the by-product silver credits per gold ounce sold from the cash cost per gold ounce sold.
Cash cost per gold ounce is calculated for the
Cash cost per gold ounce produced on a by-product basis and cash cost per gold ounce sold on a by-product basis for Q1 2019 have not been restated.
For further details, refer to the Company’s Management Discussion and Analysis for the three months ended
3) Net working capital is calculated by deducting current liabilities from current assets.
4) Non-GAAP Measure: All-in sustaining cost per gold ounce.
All-in sustaining cost per gold ounce (“AISC”) is a non-GAAP performance measures that management uses to assess the Company’s performance and its expected future performance. In the gold mining industry, these are common performance measures but they do not have any standardized meaning. As such, they are unlikely to be comparable to similar measures presented by other issuers.
The Company has adopted an all-in sustaining cost per ounce on a by-product basis performance measure which is calculated in accordance with the guidance note issued by the
All-in sustaining costs on a by-product basis include total production cash costs, corporate and administrative expenses, sustaining capital expenditures and accretion for site reclamation and closure costs. These reclamation and closure costs represent the gradual unwinding of the discounted liability to rehabilitate the area around
AISC calculated for the
AISC per gold ounce produced on a by-product basis and AISC per gold ounce sold on a by-product basis for Q1 2019 have not been restated.
For further details, refer to the Company’s Management Discussion and Analysis for the three months ended
Cautionary Note Regarding Forward-Looking Statements
Certain statements and information contained in this news release constitute “forward-looking statements” within the meaning of applicable
Forward-looking statements in news release include, but are not limited to, statements which relate to future events. Such statements include estimates of future gold prices, current and future gold production at the
Such forward-looking statements are based on a number of material factors and assumptions, including, but not limited to: the successful completion of development projects, planned expansions or other projects within the timelines anticipated and at anticipated production levels; the accuracy of gold price, production, revenue, capital expenditure, cost, reserve and resource, grade, mining, strip ratio, recovery, mine life, net present value, and tax estimates and other assumptions, projections and estimates made in respect of the Mines; that mineral resources can be developed as planned; interest and exchange rates; that required financing and permits will be obtained; general economic conditions, that labour disputes, flooding, ground instability, fire, failure of plant, equipment or processes to operate are as anticipated and other risks of the mining industry will not be encountered; that contracted parties provide goods or services in a timely manner; that there is no material adverse change in the price of gold, silver or other metals; competitive conditions in the mining industry; title to mineral properties costs; and changes in laws, rules and regulations applicable to the Company. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements, or industry results, to differ materially from those anticipated in such forward-looking statements. The Company believes the expectations reflected in such forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and you are cautioned not to place undue reliance on forward-looking statements contained herein.
Some of the risks and other factors which could cause actual results to differ materially from those expressed in the forward-looking statements contained in this news release herein by reference include, but are not limited to: decreases in the price of gold; competition with other companies with greater financial and human resources and technical facilities; maintaining compliance with governmental regulations and expenses associated with such compliance; ability to hire, train, deploy and manage qualified personnel in a timely manner; ability to obtain or renew required government permits; failure to discover new reserves, maintain or enhance existing reserves or develop new operations; risks and hazards associated with exploration and mining operations; accessibility and reliability of existing local infrastructure and availability of adequate infrastructures in the future; environmental regulation; land reclamation requirements; ownership of, or control over, the properties on which the Company operates; maintaining existing property rights or obtaining new rights; inherent uncertainties in the process of estimating mineral reserves and resources; reported reserves and resources may not accurately reflect the economic viability of the Company’s properties; uncertainties in estimating future mine production and related costs; risks associated with expansion and development of mining properties; currency exchange rate fluctuations; directors’ and officers’ conflicts of interest; inability to access additional capital; problems integrating new acquisitions and other problems with strategic transactions; legal proceedings; uncertainties related to the repatriation of funds from foreign subsidiaries; uncertainties regarding COVID-19; no dividend payments; volatile share price; negative research reports or analyst’s downgrades and dilution; and other factors contained in the section entitled “Risk Factors” in the Company’s annual information form dated
Although the Company has attempted to identify important factors that could cause actual results or events to differ materially from those described in the forward-looking statements, you are cautioned that this list is not exhaustive and there may be other factors that the Company has not identified. Furthermore, the Company undertakes no obligation to update or revise any forward-looking statements included in, or incorporated by reference in, this news release if these beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law.
For further information, please contact:
President & CEO
604-682-4002
info@aliogold.com
Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) nor the New York Stock Exchange American accepts responsibility for the adequacy or accuracy of this news release.
Source:
2020 GlobeNewswire, Inc., source