The annual financial results of HRG have finally arrived an dythey do look very impressive indeed, despite the very much suppressed share price of 1.22 $ CAN, listed on the TSE: Here are the highlights and a website to read it all:
Financial Results
Net gold revenue of $563.8 million, an increase of 29% from 2010.
Net income attributable to equity holders of $170.4 million (
.20 per share) compared to a net income of $111.7 million (
.13 per share) in 2010.
Cash flow from operations of $188.9 million, up from $154.3 million in 2010.
Cash and cash equivalents increased to $162.3 million, up from $ 154.0 million in 2010.
Working capital increased to $276.7 million, up from $210.9 million in 2010.
Current and long term debt decreased to $20.5 million, down from $25.0 million in 2010.
In January 2011, Royal Gold, Inc. ("RGI") agreed that the Completion Test (as such term is defined in the amended and restated funding agreement (the "Taparko Funding Agreement") dated February 22, 2006 between RGI and Somita S.A. ("Somita")) had been satisfied and agreed to release its security interests in certain collateral (including certain equity investments in public companies) that it held pursuant to the Taparko Funding Agreement.
In June 2011, High River has agreed to settlement terms with its former contractor in respect of a previously disclosed action brought against Somita. As previously disclosed, a claim regarding services that were delivered to Somita was filed against Somita before the arbitrator in South Africa in 2009. The aggregate amount of the claim was US$3.7 million and High River filed a statement of defense and counterclaim for damages. The settlement agreement provides for full and final settlement of the contractor's claim against Somita for a settlement amount of US$1,350,000.
Operations
Total gold production increased 11% to 367,690 (2010 - 329,971 ounces (100%)). Total cash cost per ounce decreased 0.5% to US$650 (2010 - US$653 per ounce) (see the Non-IFRS Financial Measures table).
The Zun-Holba and Irokinda Gold Mines produced 131,877 ounces (2010 - 135,636) (100%) at a total cash cost of US$673 per ounce.
The Taparko-Bouroum Gold Mine produced 131,519 ounces (2010 - 127,684) (100%) at a total cash cost of US$584 per ounce.
Gold production at Berezitovy was 104,294 ounces (2010 - 66,651 ounces) (100%) at a total cash cost of US$ 702 per ounce.
High River's subsidiary in Burkina Faso, Bissa Gold S.A. ("Bissa Gold"), was granted the mining license for the Bissa Gold Project by the governmental authorities of Burkina Faso for a term of 20 years with a possibility of renewal. Bissa Gold has engaged an EPCM (Engineering, Procurement, and Construction Management) contractor and mining and processing suppliers.
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