TORONTO, ONTARIO--(Marketwire - Aug. 13, 2010) -
(All currency figures are in Canadian dollars unless otherwise noted)
High River Gold Mines Ltd. ("High River" or the "Company") (TSX:HRG) today reported its financial results and operational highlights for the three and six month periods ended June 30, 2010. The Unaudited Interim Consolidated Financial Statements and related Notes along with the Management's Discussion and Analysis have been filed with SEDAR (www.sedar.com) and can be viewed on the Company's website at www.hrg.ca.
HIGHLIGHTS FOR THE SECOND QUARTER 2010
Financial Results
-- Net gold revenue of $113.8 million, an increase of 16% from $97.7 million in Q1 2010, an increase of 34% from $84.6 million in Q2 2009. -- Net income of $39.3 million (
.05 per share) compared to a net income of $27.5 million (
.03 per share) in Q1 2010 and a net loss of $37.8 million (-
.06 per share) in Q2 2009. -- Cash flow from operations of $48.8 million, compared to $31.5 million in Q1 2010, and $22.8 million in Q2 2009. -- Cash and cash equivalents increased to $92.7 million from $82.5 million at the end of Q1 2010, and up from $23.1 million at the end of Q2 2009. -- Current and long term debt decreased to $31.5 million from $62.6 million at the end of Q1 2010 and from $135.6 million at the end of Q2 2009. Operations ---------------------------------------------------------------------------- Production (100%) Cash Operating Costs Total Cash Costs Oz US$/Oz US$/Oz----------------------------------------------------------------------------Buryatzoloto 36,467 520 592----------------------------------------------------------------------------Berezitovy 20,332 684 756----------------------------------------------------------------------------Somita 30,004 325 370----------------------------------------------------------------------------Total 86,803 491 554----------------------------------------------------------------------------
Q2 2010 total operating and non-operating cash costs reached US $585 per ounce. Non-operating cash costs per ounce mainly represent corporate administration, exploration, and other expenses such as realized foreign exchange losses.
-- Zun-Holba and Irokinda Underground Gold Mines: -- Stable production with no material shortcomings. -- Lower grades processed resulted in higher production cash costs -- Berezitovy Open-pit Gold Mine: -- The crusher and mill availability significantly increased compared to the previous quarter, but remained below planned level. -- Lower production during the quarter resulted in higher production cash costs -- Taparko-Bouroum Open-pit Gold Mine: -- Production in line with the plan resulted in low production cash costs
DISCUSSION OF FINANCIAL RESULTS
Selected Financial Results
The Company reported a net income of $39.3 million (
.05 per share) in Q2 2010 compared to a net income of $27.5 million (
.03 per share) in Q1 2010 and a net loss of $37.8 million (-
.06 per share) in Q2 2009.
Three months ended Six months ended --------------------------------------------------------------(except per share June 30, March 31, June 30, June 30, June 30, amounts) 2010 2010 2009 2010 2009 --------------------------------------------------------------------------------------------------------------------------------------------------------Gold revenue $ 113,808 $ 97,656 $ 84,561 $ 211,464 $ 173,340 Net income (loss) 39,267 27,530 (37,777) 66,797 (10,219)Net income (loss) per share (basic) 0.05 0.03 (0.06) 0.08 (0.02)Cash provided by (used in) operating activities 48,800 31,499 22,821 80,299 52,493 Weighted average number of shares outstanding (basic) 799,327,755 799,327,755 597,407,151 799,327,755 593,800,412 --------------------------------------------------------------------------------------------------------------------------------------------------------
OVERVIEW OF OPERATIONS
Underground Mines
The Company's attributable gold production from Buryatzoloto was 30,974 ounces compared to 28,652 ounces in Q1 2010 and 30,439 ounces in Q2 2009. Buryatzoloto continues to be profitable and achieved its production objectives for Q2 2010 with 36,466 ounces (100%) of gold produced at an estimated total cash cost of US$592 per ounce as compared to 35,835 ounces of gold produced at a total cash cost of US$459 per ounce in Q2 2009.
Open Pit Mines
Berezitovy Mine (Russia)
The main crusher and mill availability significantly increased in Q2 2010 compared to the previous quarter. As a result, production increased by 49% while cash operating costs decreased by 28%. The Company's attributable gold production from Berezitovy was 20,129 ounces compared to 13,468 ounces in Q1 2010 and 23,783 ounces in Q2 2009.
Taparko-Bouroum Mine (Burkina Faso)
The mine ran well and met management's expectations. The Company's attributable gold production from Taparko-Bouroum mine was 27,003 ounces in Q2 2010 compared to 27,384 ounces in Q1 2010 and 18,125 ounces in Q2 2009. The total cash costs in Q2 2010 amounted to US$370 per ounce.
Exploration Projects
Burkina Faso
In Q2 2010 the Company continued the Feasibility Study of the Bissa project, which is expected to be completed in 2010. At the same time the company continues exploration at the Bissa group permits and other properties in Burkina Faso. 8,500 meters of RC drilling, 9,300 meters of RAB drilling and 390 meters of Diamond drilling were completed in Q2 2010.
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