Brigus Gold Corp. (“Brigus” or the “Company”)(NYSE MKT: BRD) (TSX: BRD) announces results for the third quarter (“Q3-12”) of 2012.
This press release should be read in conjunction with the Company’s September 30, 2012 condensed consolidated interim financial statements and associated Management’s Discussion and Analysis (“MD&A”), which are available from the Company's website ( www.brigusgold.com) and on SEDAR ( www.sedar.com). All dollar amounts are expressed in US dollars unless otherwise specified. All financial results are presented in accordance with International Financial Reporting Standards.
Third Quarter 2012 Financial Highlights
- Sold 19,064 ounces of gold, a 4% increase over the 18,419 ounces sold in Q2-12 and an 11% increase over the 17,119 ounces sold in Q3-11.
- Reduced cash costs to $728 per ounce, a 10% decrease in cash costs from Q3-11, which totalled $807 per ounce and a 9% decrease in cash costs in Q2-12, which were $799 per ounce.
- Generated cash flow from operations, before working capital adjustments, of $12.5M, compared to $10.5M in the same period in 2011.
- Increased operating margin by 2% to $855 per ounce, compared to $836 per ounce in Q3-11.
- Generated positive income from operations of $5.9M, compared to $2.6M in Q3-11.
- Brigus completed the sale of the Calais Notes to New West Capital for total proceeds of $6M.
|Gold ounces||Cash costs per ounce|
Consolidated Financial Results
|($ thousands, except per share and ounces)||For the three months ended||For the nine months ended|
September 30, 2011
September 30, 2012
|Revenue from the sale of gold||$||30,170||$||19,243||$||84,415||$||50,676|
|Income (loss) from operations||$||5,904||$||
|Basic and diluted earnings per share||$||0.04||$||0.07||$||0.07||$||0.07|
|Cash flows from operations||$||4,144||$||6,281||$||21,471||$||13,752|
|Gold sales in ounces||19,064||17,119||53,516||42,299|
|Total cash cost per ounce of gold sold||$||728||$||807||$||791||$||913|
- Produced 19,526 ounces of gold, a 7% increase over Q2-12 production of 18,254 ounces and a 16% increase over Q3-11 production of 16,838 ounces.
- The underground average gold grade in the third quarter was 6.00 grams per tonne (gpt).
- The open pit mined 217,118 ore tonnes at an average grade of 2.13 gpt, a 22% increase over the ore tonnes mined in Q3-11.
- The Black Fox Mill processed 190,879 tonnes of ore at an average grade of 3.34 gpt and an average recovery of 95%, compared to 189,674 tonnes at an average grade of 2.93 gpt and an average recovery of 94% in Q3-11.
- Brigus released a National Instrument 43-101 report which increased the Indicated gold resource at the Company’s Grey Fox property from 116,710 to 480,850 ounces. This resource offers a near term production opportunity for Brigus and remains open for expansion.
- Late in the quarter, the Company began mining a large long-hole stope in the West zone of the underground mine. This stope will provide 400 to 500 tonnes of ore per day once fully operational in Q1-13.
- The Company continued to report excellent exploration results from the 147 and Contact zones and reported the discovery of a new zone named the Grey Fox South Zone.
- Subsequent to the quarter, the mill optimization program was completed and resulted in increased mill processing capacity of approximately 10% to 2,200 tpd.
- Subsequent to the quarter, the Company completed a $10M Flow Through financing to fund Brigus’ 2013 exploration program.
- Subsequent to the quarter, the Company completed a bought deal debt financing for $30M in senior secured notes, the proceeds of which were used to repurchase 4% of a goldstream with Sandstorm Gold Ltd.
- Early in the quarter, Daniel Racine, a well-respected mining engineer with over 25 years of experience, joined the Brigus team as Chief Operating Officer.
- Marc Bilodeau was promoted from General Mine Manager to Vice President Operations. Marc’s hard work and leadership have resulted in significant operational improvements at the Black Fox Mine over the past year.
For the three months ended
|For the nine months ended|
|Average realized gold price||$||1,583||$||1,643||$||1,577||$||1,511|
|Open pit ore tonnes mined||217,118||178,427||629,739||295,996|
|Open pit operating waste tonnes mined||1,293,515||1,798,717||3,953,502||3,422,853|
|Open pit capital stripping tonnes mined||632,650||968,431||2,077,645||3,571,155|
|Open pit overburden tonnes mined||38,632||-||38,632||293,680|
|Total open pit tonnes mined||2,181,915||2,945,575||6,699,518||7,583,684|
|Total underground ore tonnes mined||43,504||67,551||115,255||104,319|
|Total tonnes mined||2,225,419||3,013,126||6,814,773||7,688,003|
|Tonnes milled per day||2,075||2,062||2,007||2,016|
|Head grade of ore (gpt)||3.34||2.93||3.23||2.50|
|Gold ounces produced||19,526||16,838||54,702||41,299|
|Total cash costs ($/ounce)||$||728||$||807||$||791||$||913|
|Operating margin ($/ounce)||$||855||$||836||$||786||$||598|