Vancouver, November 27, 2015 - Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX-V: SGN) is pleased to announce its financial results for the third quarter ended September 30, 2015 ("Q3"). This press release should be read in conjunction with the Company's condensed consolidated interim financial statements for Q3 of 2015 and Management Discussion & Analysis for the same period, available on the Company's website at www.scorpiogold.com and under the Company's name on SEDAR at www.sedar.com. All monetary amounts are expressed in US dollars unless otherwise specified.
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Peter Hawley, CEO, comments, "After three strong quarters of production at Mineral Ridge in 2015, Scorpio Gold remains on track to meet its forecast of 38,000 to 40,000 ounces gold produced for the current year. In the face of the ongoing decline in gold prices, the Company continues to deliver positive adjusted financial results while decreasing its total cost per ounce produced. The Company expects a strong fourth quarter and as a result expects to be in the upper range of its guidance for ounces produced and in the lower end of guidance for total cash cost per ounce produced. The Company continues to look at lowering any cost metrics that will not affect operational excellence."
Highlights for the Third Quarter Ended September 30, 2015 and Subsequent Events:
Highlights for the Nine Months Ended September 30, 2015
- 9,497 ounces of gold were produced at the Mineral Ridge mine, compared to 11,228 produced during Q3 of 2014.
- Revenue of $9.3 million compared to $14.8 million during Q3 of 2014.
- Total cash cost per ounce of gold sold(1) of $732 compared to $859 during Q3 of 2014.
- Mine operating earnings(1) of $1.8 million compared to $1.2 million during Q3 of 2014.
- Net loss of $15.8 million ($0.11 basic and diluted per share), compared to net earnings of $ 0.3 million ($0.00 basic and diluted per share) during Q3 of 2014 following non-cash impairment charge of $16.9 million.
- Adjusted net earnings(1) of $1.1 million ($0.01 basic and diluted per share) compared to $0.5 million ($0.00 basic and diluted per share) during Q3 of 2014.
- Adjusted EBITDA( ) of $3.2 million ($0.02 basic and diluted per share) compared to $3.6 million ($0.02 basic and diluted per share) during Q3 of 2014.
- Cash flow from operating activities(1) of $2.3 million compared to $5.0 million during Q3 of 2014.
- On August 14, 2015, the Company closed a $6 million principal amount debt financing mainly used to fund the exploration and development of the Company's Mineral Ridge property and for general working capital purposes. The debt bears interest at a rate of 10% per annum, paid quarterly in arrears, has a three year term, and is secured against all of the assets of the Company.
(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 2015 for a complete definition and reconciliation to the IFRS results reported in the Company's financial statements for Q3 of 2015.
- 30,187 ounces of gold were produced at the Mineral Ridge mine, compared to 30,556 during the nine months ended September 30, 2014.
- Revenue of $33.8 million compared to $38.6 million during the nine months ended September 30, 2014.
- Total cash cost per ounce of gold sold(1) of $779 compared to $825 during the nine months ended September 30, 2014.
- Mine operating earnings(1) of $6.2 million compared to $3.6 million during the nine months ended September 30, 2014.
- Net loss of $13.3 million ($0.10 basic and diluted per share) compared to net earnings of $1.3 million ($0.00 basic and diluted per share) following non-cash impairment charge of $16.9 million.
- Adjusted net earnings(1) of $3.9 million ($0.02 basic and diluted per share) compared to $1.4 million ($0.00 basic and diluted per share) during the nine months ended September 30, 2014.
- Adjusted EBITDA(1) of $7.9 million ($0.04 basic and diluted per share) compared to $10.8 million ($0.06 basic and diluted per share) during the nine months ended September 30, 2014.
- Cash flow from operating activities(1) of $11.2 million, up from $10.4 million during the nine months ended September 30, 2014.
The discussion of financial results in this press release includes reference to Adjusted EBITDA, Total cash cost per ounce of gold sold and Adjusted Net Earnings, which are non-IFRS measures. The Company provides these measures as additional information regarding the Company's financial results and performance. Please refer to the Company's Management Discussion & Analysis for Q3 of 2015 for definitions of these terms and a reconciliation of these measures to reported IFRS results.
About Scorpio Gold Corporation
Scorpio Gold holds a 70% interest in the producing Mineral Ridge gold mining Scorpio Gold holds a 70% interest in the producing Mineral Ridge gold mining operation located in Esmeralda County, Nevada with joint venture partner Elevon, LLC (30%). Mineral Ridge is a conventional open pit mining and heap leach operation. The Mineral Ridge property is host to multiple gold-bearing structures, veins and lenses at exploration, development and production stages. Scorpio Gold also holds a 100% interest in the advanced exploration-stage Goldwedge property in Manhattan, Nevada, with a fully permitted underground mine and 400 ton per day mill facility. The Goldwedge mill facility has been placed on a care and maintenance basis and can be restarted immediately when needed.
Scorpio Gold's President & CEO, Peter J. Hawley, PGeo,, is a Qualified Person as defined by National Instrument 43-101 and has reviewed and approved the content of this release.
ON BEHALF OF THE BOARD
SCORPIO GOLD CORPORATION
Peter J. Hawley,
President & CEO
For further information contact:
Peter J. Hawley, CEO
Tel: (819) 825-7618
Jim Macdonald, Torrey Hills Capital
Tel: (858) 456-7300
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
The Company relies on litigation protection for "forward-looking" statements. This news release contains forward-looking statements that are based on the Company's current expectations and estimates. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur, and include, without limitation, statements regarding the Company's plans with respect to the exploration, development and exploitation of its Mineral Ridge mine, including any forecasts regarding future production or costs related thereto. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements, including risks relating to operation of a gold mine, including unanticipated changes in the mineral content of materials being mined; unanticipated changes in recovery rates; changes in project parameters; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; availability of skilled labour and the impact of labour disputes; delays in obtaining governmental approvals; changes in metals prices; the availability of cash flows or financing to meet the Company's ongoing financial obligations; unanticipated changes in key management personnel; changes in general economic conditions; other risks of the mining industry and those risk factors outlined in the Company's Management Discussion and Analysis as filed on SEDAR. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty thereof.