RE: !st Quarter results Posted on SEDAR yesterday. Outstanding.
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The period of operations to October 31, 2011, produced earnings from mine operations of $7,317 compared to $2,767
for the period ended October 31, 2010. Average gold ore grades 2.4 g/t for the period ended October 31, 2011 was
higher than the comparative period where grades averaged 2.09 g/t and silver ore grades averaged 41 g/t for the period
ended October 31, 2011 compared to 34 g/t for the comparative period. This, combined with higher metal prices and
increased production levels for the year, resulted in substantially higher revenue. Costs, for the three months ended
October 31, 2011, were slightly lower at an average operating cost of US$548/EqOz compared to an average
operating cost of US$555/EqOz in the period ended October 31, 2010. When combined with the increase in
equivalent ounces produced, the mined ore costs reported were only $133 higher at $3,759 as compared to the period
ended October 31, 2010 despite the much higher production.
Cash flows from operating activities were $2,593 during the period ended October 31, 2011, compared to $294 for the
period ended October 31, 2010. The effect on cash provided by operations, including the increase in earnings from
mining operations as discussed above, was reduced by an increase in amounts paid to settle the Company’s forward
contract obligations. Cash flows from operating activities were determined by removing non-cash expenses from the
earnings and adjusting for non-cash working capital amounts. Overall cash increased during the period ended
October 31, 2011 by $862 compared to a decrease of $678 in the comparative period ended October 31, 2010.