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Brigus Gold Reports Fourth Quarter And 2012 Financial Results

Stocks in this article: BRD

Brigus Gold Corp. (“Brigus” or the “Company”)(NYSE MKT: BRD; TSX: BRD) announces results for the fourth quarter (“Q4-12”) and the year-ended December 31, 2012.

Key milestones for the year include a 39% increase in production and achieving cash costs of $685 per ounce in the fourth quarter.

Wade Dawe, Chairman and CEO of Brigus Gold, commented: “In 2012, we successfully achieved many key objectives that align with our vision of becoming a leading Canadian gold producer. We realized record production levels at our Black Fox mine, significantly lowered our cash costs, increased profitability and continued to invest in exploration on the Grey Fox property to increase our gold resources. These positive trends will continue during 2013 as we further increase gold production and revenues while carefully managing costs and expenditures at the Black Fox mine.”

Fourth Quarter Highlights

  • Cash costs of $685 per ounce, a 36% reduction from cash costs in Q4-11 which totaled $1,066.
  • Increased operating margin by 81% to $964 per ounce compared to $533 per ounce in Q4-11.
  • Increased production by 57% to 22,672 gold ounces compared to 14,457 ounces in Q4-11.
  • Generated cash flow from operations, before working capital adjustments and the goldstream repurchase, of $17.4 million, compared to $6.6 million in Q4-11.
2012   Q1   Q2   Q3   Q4
Gold Production 16,922 18,254 19,526 22,672
Revenues $25.8M $28.4M $30.2M $33.3M
Cash Costs/ ounce $858 $799 $728 $685

2012 Achievements

  • Achieved record production of 77,374 gold ounces, a 39% increase over the 55,756 ounces produced in 2011.
  • Significantly increased average head grade to 3.43 gpt in 2012 compared to 2.54 gpt in 2011.
  • Generated cash flow from operations, before working capital adjustments and the goldstream repurchase, of $52.4 million, compared to $20.2 million in 2011.
  • Generated positive income from mining operations of $23.3 million, compared to a loss of $4.0 million in 2011.
  • Capital spending for the year totaled $53.5 million, below the prior year’s capital spending of $60.2 million.

Exploration Progress

  • In Q4-12, the Company completed a $10.0 million flow-through financing to fund the Company’s 2013 exploration program.
  • In Q4-12, the Company released exploration drill results from the Black Fox underground mine, which showed excellent gold grades over significant widths. Additional results from the underground exploration program will be released Q2-13.
  • An updated NI 43-101 resource estimate on the Grey Fox property will be released next month followed by a bankable feasibility study in Q3-13.
  • The Company completed a review of the Stock Mine property and concluded that the Stock Mine ore body remains open for expansion and potential future mining. For 2013, the Company will focus on development activities for Grey Fox and will not carry out further work on the Stock Mine property.

The following is a summary of the key operating results for the fourth quarter and the year ended December 31, 2012:

    For the three months ended

December 31

  For the twelve months ended

December 31

2012   2011 2012   2011
Metal Sales
Gold (ounces) 20,175 14,702 73,691 57,001
Silver (ounces) 1,096 948 4,178 2,803
Average realized gold price – including Goldstream $1,649 $1,599 $1,597 $1,533
Average realized gold price – excluding Goldstream $1,712 $1,668 $1,665 $1,589
Open pit ore tonnes mined 277,338 137,271 907,077 433,267
Open pit waste tonnes mined 1,054,830 1,426,653 5,008,332 4,849,506
Open pit capital stripping tonnes mined 222,900 1,072,924 2,300,545 4,644,079
Open pit overburden tonnes mined 1,148,408 - 1,187,040 293,680
Total open pit tonnes mined 2,703,476 2,636,848 9,402,994 10,220,532
Underground ore tonnes mined 49,671 64,216 164,926 170,899
Total tonnes mined 2,753,147 2,701,064 9,567,920 10,391,431
Tonnes milled 185,727 175,150 735,573 725,541
Tonnes milled per day 2,019 1,904 2,010 1,988
Head grade of ore (gpt) 4.04 2.66 3.43 2.54
Recovery (%) 94% 97% 95% 94%
Gold ounces produced 22,672 14,457 77,374 55,756
Total cash costs ($/ounce): $685 $1,066 $762 $958
Operating margin ($/ounce): $964 $533 $835 $575

The following is a summary of the key financial results for the fourth quarter and year ended December 31, 2012:



($ thousands, except per share and ounces)

  For the three months ended

December 31

  For the twelve months ended

December 31

2012   2011 2012   2011
Revenue from the sale of gold $33,266 $21,179 $117,681 $71,855
Mining operating costs $23,990 $21,548 $94,335 $75,865
Income (loss) from mining operations $9,276 $(369) $23,346 $(4,010)
Net income and comprehensive income $4,390 $2,407 $19,111 $15,769
Basic and diluted earnings per share $0.02 $0.01 $0.09 $0.08
Adjusted cash flows from operations (1) $17,456 $6,573 $52,446 $20,221
Gold sales in ounces 20,175 14,702 73,691 57,001
Total cash cost per ounce of gold sold (1) $685 $1,066 $762 $958

(1) Adjusted cash flow from operations and total cash cost per ounce gold sold are non-GAAP measures and are not necessarily comparable to similar titled measures of other companies due to potential inconsistencies in the method of calculation.

“Brigus enters 2013 in a strong position with a management team committed to delivering shareholder value. This year, our efforts will be focused on increasing mined tonnage and gold production levels at the underground mine while continuing to lower our cost profile,” said Daniel Racine, Brigus’ President and Chief Operating Officer. “For Grey Fox, some key milestones are forthcoming including the release of an updated NI 43-101 resource estimate in second quarter, followed by the release of a bankable feasibility study in quarter three.”

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