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Operations

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Mineral Ridge

Current Operations
FOURTH QUARTER & YEAR ENDED 2017

Production in Q4 2017 totalled 3,709 ounces of gold and 2,256 ounces of silver. Total production in 2017 amounted to 19,045 ounces of gold and 10,203 ounces of silver. Mining operations were suspended in early November 2017; however, residual but diminishing gold recoveries continue from the leach pads. Mine production decreased in 2017 due to mining 47% fewer ore tonnes, although average grades were 9% higher as compared to the prior year. A summary of the Q4 2017 operating and financial results is presented in the Company's January 10, 2018 and April 24, 2018 news releases with complete details provided in the Q4 2017 Financial Statements and Management Discussion & Analysis.

2017 HIGHLIGHTS AND SUBSEQUENT EVENT

The Company's only source of revenue is derived from its 70% owned Mineral Ridge mine. Production at Mineral Ridge slowed during the year and mining was suspended in November 2017, as the Company had mined all of its then known mineral reserves and because it was uneconomical to continue mining as a result of higher strip ratios associated with the remaining known mineral resources. As a result, the Company's revenues from operations in 2017 declined over the previous year.
  • 19,045 ounces of gold were produced at the Mineral Ridge mine, compared to 36,879 ounces produced during 2016.
  • Revenue of $27.0 million, compared to $42.8 million during 2016.
  • Total cash cost per ounce of gold sold(1) of $1,026, compared to $881 during 2016.
  • Mine operating earnings of $2.6 million, compared to $9.6 million during 2016.
  • Net loss of $4.2 million ($0.03 basic and diluted per share), compared to net earnings of $0.3 million ($0.00 basic and diluted per share) during 2016.
  • Adjusted net earnings(1) of $0.4 million ($0.00 basic and diluted per share), compared to $6.5 million ($0.03 basic and diluted per share) during 2016.
  • Adjusted EBITDA(1) of $2.8 million ($0.01 basic and diluted per share), compared to $9.6 million ($0.05 basic and diluted per share) million during 2016.
  • On January 4, 2018, the Company announced the results of an updated feasibility study ("Updated Feasibility Study and National Instrument 43-101 Technical Report: Mineral Ridge Project", with an effective date of January 2, 2018 prepared by Novus Engineering Inc.) for the recovery of gold and silver from processed heap leach materials and also additional open-pit- able mineral reserves at its Mineral Ridge property.

FOURTH QUARTER 2017 ("Q4") HIGHLIGHTS
  • 3,709 ounces of gold were produced at the Mineral Ridge mine during Q4 of 2017, compared to 8,301 ounces during Q4 of 2016.
  • Revenue of $4.8 million, compared to $7.6 million during Q4 of 2016.
  • Total cash cost per ounce of gold sold(1)(1) of $1,188 compared to $873 during Q4 of 2016.
  • Mine operating earnings of $0.1 million compared to $1.5 million during Q4 of 2016.
  • Net loss of $1.2 million ($0.01 basic and diluted per share), compared to net loss of $4.3 million ($0.03 basic and diluted per share) during Q4 of 2016.
  • Adjusted net loss(1) of $0.6 million ($0.00 basic and diluted per share) compared to adjusted net earnings of $0.8 million ($0.00 basic and diluted per share) for Q4 of 2016.
  • Adjusted EBITDA( ) of negative $0.3 million ($0.00 basic and diluted per share) compared to $1.6 million ($0.01 basic and diluted per share) during Q4 of 2016.
(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 a complete definition and reconciliation to the Company's financial statements.





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