WINNIPEG, MANITOBA--(Marketwired - May 9, 2013) - San Gold Corporation (TSX:SGR)(OTCQX:SGRCF) today reported 2013 first quarter financial and operating results.
During the quarter, the Company produced 17,354 ounces of gold with an average milled grade of 4.15 grams per tonne and recognized a quarterly total and comprehensive loss of $9.7 million for the quarter. Included in this amount is the recognition of employee severance and other charges of approximately $2.5 million which are expected to result in annual cost savings of approximately $3.0 million.
The Company also moved forward with its capital plan for the Rice Lake mining complex during the quarter. This plan includes the development of operational access beneath the current mining areas within the 007 and Hinge mines while extending the 16 and 26 levels in order to accelerate access to the down dip extensions of these deposits to more than 1,200 metres below surface.
2013 First Quarter Highlights:
- Appointed Mr. Ian Berzins as President and CEO effective March 25, 2013.
- Produced 17,354 ounces of gold.
- Recognized quarterly revenue of $24.3 million on gold sales of 15,353 ounces at a realized price of $1,584 per ounce.
- Had a cash and cash equivalents balance of $33.7 million as at March 31, 2013.
- Achieved average mill throughput of 1,733 tons per day for the quarter.
- Recognized quarterly loss from operations of $0.04 million.
- Recognized quarterly total and comprehensive loss of $9.7 million
- Cash flow used by operating activities before changes in non-cash working capital of $2.2 million.
- Total cash costs of $1,113 per ounce of gold sold.
- Realized a cash operating margin of $471 per ounce of gold sold with a realized price of $1,584 per ounce through the quarter.
- Completed approximately 62,000 metres of exploration and definition diamond drilling.
- Initiated comprehensive review of operations with a mandate to improve performance.
"We have already made significant progress with our development efforts during the first quarter. Despite a temporary reduction in grade, our material handling capacity has been improved and we have managed to reduce our overall operating costs compared to the same period last year. This is consistent with our goal to optimize our Rice Lake operations and I expect significantly improved financial results as grades return to normalized levels," said Ian Berzins, President and Chief Executive Officer of San Gold. "The Company remains on track to produce 75,000 and 90,000 in 2013, at cash costs of between $800 and $900."