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Operations

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Mineral Ridge

Current Operations
FOURTH QUARTER & YEAR ENDED 2016

Total gold production in 2016 was 36,879 ounces, exceeding the Company's high end guidance of 35,000 by 1,879 ounces, or 5%. The annual production for 2016 of 36,879 ounces represented a decrease of 7% over the prior year. Gold production in Q4 2016 totalled 8,301 ounces representing a decrease of 13% from Q4 2015. Mine production decreased in 2016 due to mining 24% fewer ore tonnes at 5% lower grades in the Mary LC and satellite pits, as compared to the prior year. Ore tonnes crushed and placed on the pad were 5% lower in 2016 compared to 2015 as a result of fewer tonnes mined which was offset by a larger initial ore stockpile inventory at the beginning of 2016.

A summary of the Q4 and Year 2016 operating results is presented in the Company's January 11, 2017 news release.

THIRD QUARTER 2016

Production at Mineral Ridge in Q3 of 2016 totalled 9,981 ounces of gold and 4,630 ounces of silver. Total gold production for the first nine months of 2016 now stands at 28,578 ounces. The Company's 2016 production forecast remains unchanged at 30,000 to 35,000 ounces of gold at a total cash cost of $850-$900 per ounce of gold sold.

A summary of the Q3 2016 operating and financial results is presented in the Company's October 13, 2016 and November 24, 2016 news releases, with complete details provided in the Q3 2016 Financial Statements and Management Discussion & Analysis.

Highlights for the Third Quarter Ended September 30, 2016:
  • 9,981 ounces of gold produced at the Mineral Ridge mine, compared to 9,497 produced during Q3 of 2015.
  • 10,000 ounces of gold sold, compared to 8,516 ounces sold during Q3 of 2015.
  • Revenue of $13.3 million compared to $9.3 million during Q3 of 2015.
  • Total cash cost per ounce of gold sold(1) of $956 compared to $732 during Q3 of 2015.
  • Mine operating earnings of $3.2 million compared to $1.8 million during Q3 of 2015.
  • Net earnings of $2.3 million ($0.01 basic and diluted per share), compared to net loss of $ 15.8 million ($0.11 basic and diluted per share) during Q3 of 2015.
  • Adjusted net earnings(1) of $2.5 million ($0.01 basic and diluted per share) compared to $1.1 million ($0.01 basic and diluted per share) during Q3 of 2015.
  • Adjusted EBITDA(1) of $3.5 million ($0.02 basic and diluted per share) compared to $3.2 million ($0.02 basic and diluted per share) during Q3 of 2015.
  • Cash flow from operating activities of $5.9 million compared to $2.3 million during Q3 of 2015.
  • On August 10, 2016 the Company announced the resignation of Peter J. Hawley from the position of president, effective on that date, for personal reasons. Mr. Hawley also retired from the position of CEO of the Company on November 1, 2016. Mr. Hawley remains as Chairman and a Director of the Company. The Company also announced the promotion of Chris Zerga to the position of President effective August 10, 2016. Brian Lock, a current Director of the Company, was appointed as Interim CEO effective November 2, 2016.

Highlights for the Nine Months Ended September 30, 2016
  • 28,578 ounces of gold produced at the Mineral Ridge mine, compared to 30,187 during the nine months ended September 30, 2015.
  • 28,315 ounces of gold sold, compared to 29,141 ounces sold during the nine months ended September 30, 2015.
  • Revenue of $35.2 million compared to $33.8 million during the nine months ended September 30, 2015.
  • Total cash cost per ounce of gold sold(1) of $883 compared to $779 during the nine months ended September 30, 2015.
  • Mine operating earnings of $8.1 million compared to $6.2 million during the nine months ended September 30, 2015.
  • Net earnings of $4.6 million ($0.02 basic and diluted per share) compared to net loss of $13.3 million ($0.10 basic and diluted per share) during the nine months ended September 30, 2015.
  • Adjusted net earnings(1) of $5.8 million ($0.03 basic and diluted per share) compared to $3.9 million ($0.02 basic and diluted per share) during the nine months ended September 30, 2015.
  • Adjusted EBITDA(1) of $7.9 million ($0.04 basic and diluted per share) compared to $7.9 million ($0.04 basic and diluted per share) during the nine months ended September 30, 2015.
  • Cash flow from operating activities of $10.4 million, compared to $11.2 million during the nine months ended September 30, 2015.
(1) This is a non-IFRS measure; refer to Non-IFRS Measures section of this press release and the Company's Management Discussion & Analysis for Q3 of 2016 for a complete definition and reconciliation to the IFRS results reported in the Company's financial statements for Q3 of 2016.



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