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Scorpio Gold Reports Record Fourth Quarter and Provides Year-End Financial Results for 2012
VANCOUVER, BRITISH COLUMBIA–(Marketwired – April 12, 2013) - Scorpio Gold Corporation (“Scorpio Gold” or the “Company”) (TSX VENTURE:SGN) is pleased to announce its financial results for the fourth quarter (“Q4″) and year ended December 31, 2012. This press release should be read in conjunction with the Company’s Management Discussion Analysis and the consolidated financial statements for the year ended December 31, 2012, 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.
PERFORMANCE HIGHLIGHTS:
Q4 2012
Q3 2012
2012
2011
$
$
$
$
Revenue
15,498,250
11,725,116
52,615,315
-
Mine operating earnings
4,424,334
2,574,962
14,837,526
-
Net earnings (loss)
3,516,181
2,828,277
11,511,056
(6,568,377
)
Earnings (loss) per share (Basic)
0.03
0.02
0.06
(0.06
)
Earnings (loss) per share (Diluted)
0.03
0.02
0.06
(0.06
)
Total cash cost per ounce of gold sold(1)
855
989
948
-
Gold ounces produced
10,812
6,663
32,066
-
Peter Hawley, CEO comments, “Despite numerous challenges in our first year of commercial production at Mineral Ridge, the Scorpio Gold team rose to each challenge and met the Company’s 2012 production guidance. Operations in Q4 continued to improve on cost performance while increasing overall gold production. Total earnings for the year were $0.06 per share, with half of that coming from Q4 earnings. Scorpio Gold is focused on creating value for its shareholders and we are proud to have met our goals set for 2012 and look forward to further successes in 2013.”
2012 HIGHLIGHTS
- Operating revenue of $52.6 million.
- Total cash cost per ounce(1) of gold sold of $948.
- Mine operating earnings of $14.8 million.
- Net earnings of $11.5 million.
- Earnings per share of $0.06.
- Adjusted cash flows from operating activities(1) of $22.5 million.
- Adjusted net earnings(1) of $12.1 million.
- Adjusted EBITDA(1) of $22.9 million.
- 32,066 ounces of gold produced(1).
- In December 2012 the Company completed the acquisition of Goldwedge and Pinon, two advanced exploration-stage properties located in Nevada.
FOURTH QUARTER HIGHLIGHTS
- Revenue of $15.5 million compared to $11.7 million in the third quarter of 2012 (“Q3″). This increase is mostly due to the sale of approximately 1,878 ounces of gold as part of the sale of loaded carbon to Waterton during Q4.
- Total cash cost per ounce(1) of gold sold of $855 compared to $989 in Q3. This decrease is mostly attributable to higher production during Q4 compared to Q3 along with a lower strip ratio and higher head grade.
- Mine operating earnings of $4.4 million compared to $2.6 million in Q3.
- Net earnings of $3.5 million compared to $2.8 million in Q3.
- Earnings per share of $0.03 compared to $0.02 in Q3.
- Adjusted cash flow from operating activities(1) of $5.7 million compared to $3.8 million in Q3.
- Adjusted net earnings(1) of $3.8 million compared to $2.0 million in Q3.
- Adjusted EBITDA(1) of $7.1 million compared to $5.7 million in Q3.
- 10,812 ounces of gold produced compared to 6,663 ounces in Q3.
NON-IFRS MEASURES
The discussion of financial results in this press release includes reference to EBITDA, Adjusted EBITDA, Cash Cost per Ounce, Adjusted Cash Flow from Operating Activities 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 MDA for the year ended December 31, 2012 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 Mineral Ridge gold mining operation located in Esmeralda County, Nevada with joint venture partner Waterton Global Value L.P. (30%), and is entitled to receive 80% of cash flow generated. Mineral Ridge is currently in production as a conventional open pit mining and heap leach operation. The property is host to multiple gold-bearing structures, veins and bodies at exploration, development and production stages. Scorpio Gold recently acquired the Goldwedge advanced exploration-stage property and processing facility in Manhattan, Nevada, and the Pinon advanced exploration-stage gold property near Carlin, Nevada. The Company is assessing its exploration plans for these properties as well as the potential for toll milling at the 500 ton per day Goldwedge plant.
Scorpio Gold’s CEO, Peter J. Hawley, P.Geo., is a Qualified Person for the Mineral Ridge project and has reviewed and approved the content of this release. For additional information, please see the Company’s website at www.scorpiogold.com.
ON BEHALF OF THE BOARD
SCORPIO GOLD CORPORATION
Peter J. Hawley, CEO
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 and development of its Mineral Ridge project. 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 such as delays related to completion of economic studies 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.
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.
2013-04-14 01:16:24
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