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
The following is a summary of the key financial results for the fourth quarter and year ended December 31, 2012:
(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.”
- 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.
|Cash Costs/ ounce||$858||$799||$728||$685|
- 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.
- 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.
|For the three months ended December 31||For the twelve months ended December 31|
|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||$1,589|
|Open pit ore tonnes mined||277,338||137,271||907,077||433,267|
|Open pit waste tonnes mined||1,054,830||1,426,653||5,008,332||4,849,506|
|Open pit capital stripping tonnes mined||222,900||1,072,924||2,300,545||4,644,079|
|Open pit overburden tonnes mined||1,148,408||-||1,187,040||293,680|
|Total open pit tonnes mined||2,703,476||2,636,848||9,402,994||10,220,532|
|Underground ore tonnes mined||49,671||64,216||164,926||170,899|
|Total tonnes mined||2,753,147||2,701,064||9,567,920||10,391,431|
|Tonnes milled per day||2,019||1,904||2,010||1,988|
|Head grade of ore (gpt)||4.04||2.66||3.43||2.54|
|Gold ounces produced||22,672||14,457||77,374||55,756|
|Total cash costs ($/ounce):||$685||$1,066||$762||$958|
|Operating margin ($/ounce):||$964||$533||$835||$575|
|($ thousands, except per share and ounces)||For the three months ended December 31||For the twelve months ended December 31|
|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|
2013: Year to Date and Outlook
- Gold production for the first quarter of 2013 will exceed 25,000 ounces. Production results for the first quarter of 2013 will be released during the week of April 8, 2013.
- Recovered gold grades from the underground mine continue to exceed reserve grades.
- Gold production for the year will be in the range of 90,000 – 100,000 ounces, and cash costs will be within $700-$750.
- Capital spending for mining operations in 2013 is estimated at $43.5 million, consisting of the following:
- Capital spending related to the development of the Grey Fox mine and exploration on the Black Fox Complex is estimated at $12.0 million, consisting of the following: