Timmins Gold Reports Results for Q2 2013 VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 8, 2013) - Timmins Gold Corp. (TSX:TMM)(NYSE MKT:TGD) (the "Company") is pleased to report its financial results for the second quarter ended June 30, 2013. The comparative period is the three months ended June 30, 2012. All results are presented in United States dollars ("US Dollars") unless otherwise stated. Readers should refer to the 2013 management discussion and analysis and consolidated financial statements for complete information.
SECOND QUARTER HIGHLIGHTS
- Metal revenues were $35.1 million on sales of 28,024 gold ounces, compared to $38.2 million on sales of 23,499 gold ounces during the same prior year period. This represents an 8% decrease in revenue over the prior year, primarily due to the decrease in gold price beginning in April 2013. The average London PM Fix price was $1,415 per ounce, compared to $1,609 per ounce during the same prior year period. This represents a 12% decrease over the prior year. A significant portion of second quarter sales occurred in the month of June due to the timing of gold production, which coincided with a particularly weak period in gold price. As a result, the average realized gold price decreased to $1,253 per gold ounce, compared to $1,624 per gold ounce during the same prior year period.
- Profit from operations was $3.4 million, compared to $14.3 million during the same prior year period. This represents a 76% decrease over the prior year. This was mainly due to the reduced revenues realized from the lower gold price and, as a result of the lower gold price, a $5.5 million impairment was required on the non-current unprocessed ore stockpile during the current period.
- Earnings were $1.0 million or $0.01 per share, compared to $6.7 million or $0.05 per share during the same prior year period. This represents a 86% and 80% decrease, respectively, over the prior year.
- Cash flows from operations before changes in non-cash working capital were $12.1 million or $0.08 per share, compared to $18.6 million or $0.13 per share during the same prior year period.
- Cash at June 30, 2013 was $14.4 million after investing $17.0 million in exploration, plant expansion and spending on deferred stripping. Cash at June 30, 2012 was $21.2 million after investing $7.0 million in exploration, plant expansion and spending on deferred stripping.
- The Company produced 28,024 ounces of gold and sold 28,024 ounces of gold, compared to 23,203 and 23,499, respectively, during the same prior year period. This represents a 21% and 19% increase of ounces produced and sold, respectively, over the prior year due to increased throughput and crushing capacity.
- The Company's cash cost per ounce on a by-product basis was $705 (all-in sustaining cash cost per ounce on a by-product basis - $855), compared to $709 (all-in sustaining cash cost per ounce on a by-product basis - $1,048) during the same prior year period. This decrease in cash costs is due to cost reduction initiatives including a reduction in mining services cost to $1.59 per tonne of material mined from $1.64 per tonne in the original contract and reduced cyanide costs offset by lower grades realized in the current quarter of 0.81 g/t Au, compared to the same prior year quarter 0.90 g/t Au. The Company's corporate and administrative expenses also decreased over the prior year, further reducing the all-in sustaining cash costs per ounce on a by-product basis.
- The drill program at the San Francisco Gold Property concluded in Q2 2013 with a total of 49,413 meters (YTD 2013 - 135,436 meters) drilled as follows:
- A total of 41,447 meters (YTD 2013 - 113,280 meters) of drilling were completed in and around the San Francisco open pit gold mine ("the Mine"); and
- A total of 3,342 meters (YTD 2013 - 15,095 meters) were drilled in exploration areas outside of the San Francisco and La Chicharra pits with an additional 4,624 meters (YTD 2013 - 7,061 meters) of core drilling.
- The Company negotiated with Sprott Resource Lending Partnership ("the Lender" or "Sprott") to waive the anniversary fee of 1% of the total balance outstanding on the Loan Facility (payable in shares), totalling $0.2 million, which was due July 28, 2013.
- Significant milestones:
- Processed a record average of 20,317 tonnes per day due to additional crushing capacity during the quarter.
SUMMARIZED ANNUAL FINANCIAL STATEMENTS AND OPERATING RESULTS