(GoGold, 19.Dec.2023) — GoGold Resources Inc. (TSX: GGD) (OTCQX: GLGDF) announces the financial results for the year ending 30 Sep. 2023, with Parral generating $30mn (all amounts are in U.S. dollars) from the sale of 1.4 million silver equivalent ounces.
“As we look forwards towards 2024 and the opportunity for value creation for GoGold shareholders, it cannot be understated that the company is well positioned with such a strong balance sheet, including $95mn and strong economics demonstrated from the preliminary economic assessments at Los Ricos North and South. At Los Ricos South, we’ve been working with our technical team and consultants to complete all engineering and technical work required to make a construction decision on the project in the upcoming year. As part of this work, we are in the process of completing a definitive feasibility study which we expect to release in the first six months of 2024, and advancing the mine permitting application process” said Brad Langille, President and CEO.
“At Parral, we’ve completed construction of our SART Zinc circuit on time and on budget and are currently in the commissioning process. We expect to see the benefits of this project both in an increase in free cash flow and production from Parral in the upcoming year,” Langille said.
Highlights for the year ending 30 Sep. 2023:
- Cash of $95.3mn
- Revenue of $30.3mn on the sale of 1.4 million silver equivalent ounces at a realized price per ounce of $22.07 per oz
- Net loss of $7.9mn, after deduction of non-cash inventory valuation adjustment of $10.5mn and asset impairment charge of $3mn.
- Production of 1,517,264 silver equivalent ounces, consisting of 706,891 silver ounces, 7,032 gold ounces, and 615 copper tonnes
- Adjusted cash cost per silver equivalent ounce of $15.01
- Adjusted all in sustaining cost per silver equivalent ounce of $20.78
During 2023, while the tests and construction of the SART Zinc circuit was underway, the company completed a rehandling program at Parral which resulted in creating additional space on the heap leach pad which will defer capital expenditures on the project. As a result, a negative inventory adjustment of $10.5mn was recorded in the year resulting in an increased operating and net loss. As a result of the rehandling project, production decreased during the year, and the decline in results constituted an indicator of impairment in the quarter ending 30 Sep. 2023. An impairment assessment was completed resulting in the recognition of a non-cash pre-tax impairment loss of $3mn. The operation of the SART Zinc circuit in 2024 should return Parral to normal profitable operations.
Following are tables showing summarized financial information and key performance indicators:
| Summarized Consolidated Financial Information | Three months ended 30 Sep. | Year ended 30 Sep. | ||
| (in thousands USD, except per share amounts) | 2023 | 2022 | 2023 | 2022 |
| Revenue | $5,690 | $6,476 | $30,260 | $36,054 |
| Cost of sales, including depreciation | 5,412 | 9,332 | 34,209 | 30,734 |
| Operating loss | (1,514) | (4,840) | (11,840) | (3,079) |
| Net (loss) income | (4,295) | 1,076 | (7,890) | 692 |
| Basic net (loss) income per share | (0.014) | 0.004 | (0.025) | 0.002 |
| Cash flow from operations | (140) | 6,492 | (7,419) | (976) |
| Key Performance Indicators1 | Three months ended 30 Sep | Year ended 30 Sep. | ||
| (in thousands USD, except per ounce amounts) | 2023 | 2022 | 2023 | 2022 |
| Total tonnes stacked | 329,944 | 368,114 | 1,407,249 | 1,679,805 |
| Silver equivalent ounces sold | 243,518 | 364,151 | 1,371,026 | 1,721,977 |
| Adjusted AISC per silver equivalent ounce2 | $27.28 | $19.30 | $20.78 | $18.36 |
| Adjusted Cash cost per silver equivalent ounce2 | $19.72 | $13.54 | $15.01 | $13.35 |
| Realized silver price | $23.37 | $17.78 | $22.07 | $20.94 |
1Key performance indicators are unaudited non-GAAP measures, see reconciliation in MD&A.
2Gold and copper are converted using average market prices.
This news release should be read in conjunction with the consolidated financial statements for the year ended 30 Sep. 2023, notes to the financial statements, and management’s discussion and analysis for the year ended 30 Sep. 2023, which have been filed on SEDAR and are available on the company’s website. The company’s annual information form has also been filed and is available on SEDAR and the Company’s website.
Technical information contained in this news release with respect to GoGold has been reviewed and approved by Mr. Bob Harris, P.Eng., who is a qualified person for the purposes of NI 43-101.
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