Vancouver, British Columbia - Timmins Gold Corp. (TSX: TMM, NYSE MKT: TGD) (the "Company") announces the company's financial results for the third quarter of 30 ended September 3th. The comparison period is the three months ended September 2013, 30. Unless otherwise stated, all results are in US dollars. Readers are advised to consult the Management's Discussion and Analysis for the 2012rd quarter of 3 and the summary of the interim financial report for detailed information.
IMPORTANT CORNER DATA OF THE 3. QUARTER
- Metals revenues were $ 41,7 million compared to the same period last year ($ 38,1 million). This corresponds to a decrease of 9% compared to the income in the previous year, which is mainly due to the persistently low gold price since April 2013. This was compensated by the increase in production. The average London PM Fix price was $ 1.652 an ounce from the same period last year ($ 1.326 per ounce). This corresponds to a decrease of 20% compared to the previous year.
- Operating income was $ 9,3 million lower than the prior-year period ($ 19,2 million). This corresponds to a decrease of 52% compared to the previous year, which is mainly due to the drop in income due to the lower gold price.
Revenues were $ 4,8 million or $ 0,03 per share compared to $ 13,7 million or $ 0,09 per share for the same period last year. This corresponds to a decrease of 65% or 70% compared to the previous year.
Cash flow from operations before changes in cashless working capital was $ 13,7 million, or $ 0,09 per share, compared to $ 22,5 million or $ 0,16 per share for the same period last year.
Cash on September 30, 2013, after investing $ 10,3 million in exploration, facility expansion, and deferred stripping expenses, was $ 14,4 million. Cash at September 30, 2012, after investing $ 8,1 million in exploration, facility expansion, and deferred stripping expenses, was $ 28,3 million.
- The company achieved a record production result of 29.139 ounces of gold and sold 28.637 ounces of gold, also representing record sales. The values in the same period of the previous year were 25.153 and 25.153 ounces of gold. This results in an increase of 16% in ounces produced and an increase of 14% in ounces sold compared to the previous year, which can be attributed to the higher throughput and the higher crusher capacity.
- The cash cost per ounce based on byproducts was $ 738 (total cash cost / all-in sustaining cash cost per ounce based on byproducts: $ 898) compared to $ 668 (total cash cost / “All-in sustaining cash cost”) per ounce based on by-products: $ 884) in the same period last year. The increase in cash costs results primarily from the lower ore grades of 0,77 grams of gold per ton (g / t Au) in the current quarter compared to the same quarter of the previous year (0,89 g / t Au). In addition, due to a change in the calculation method due to the drop in gold prices, around 50% of the mining costs in connection with the as yet unprocessed ore inventory were added. This results in an increase in cash cost per ounce of $ 16 per ounce. These increases are partially offset by the cost reduction measures.
- In July 2013, the company announced that the installation of a new crusher circuit and start of operations at La Chicharra will be postponed until a new mine plan is in place.
In August 2013, the company signed an agreement with a device manufacturer to finance the remaining part of a plant purchase worth a total of 4,9 million (excluding VAT). The company had already paid $ 1,5 million (excluding VAT) in advance. As regards financing, an annual interest rate of 7,2% was agreed. The outstanding amount of $ 3,4 million (excluding VAT) is payable in 36 monthly installments, which include repayments of $ 0,1 million each.
SUMMARY OF FINANCIAL AND OPERATING RESULTS
To view the full press release please follow the link:
http://www.irw-press.com/dokumente/TimminsGold_301013_Deutsch.pdf
(1) The previously published total assets data for the 30. September 2012 ending quarter were influenced by the introduction of IFRIC 20 policies. The net effect (26.381 $) consists of a decline in holdings (931.524 $) offset by an increase in mineral concessions, assets and equipment (905.143 $).
“In the third quarter, the company was able to achieve a record production result with 3 ounces of gold. We generated free cash flow in the quarter despite significant investments. The expansion of the existing crusher circuit went without any problems and there is already a noticeable benefit due to the higher throughput, ”says Bruce Bragagnolo, CEO of Timmins Gold Corp. “At the current gold price level, the company can finance itself and expects free cash flow in the remaining months of 29.139. The new resource / reserve estimate and mine planning will be published soon. "
Reminder: Teleconference on the results of the 3. Quarterly 2013
The company management will be at the 30. October 2013 at 10 o'clock in the morning (East time) to switch a teleconference to the financial results for the 3. To discuss quarter 2013. Participants in the teleconference are invited to register on-line via a link on the Timmins Gold website (www.timminsgold.com). Please enter the access code 845689 or use the following link:
https://selfreg-inscriptionauto.confsolutions.ca/webportal/reg.html?Acc=3695912854&Conf=131576.
After you have entered your details, you will receive an access key and a PIN code, which you can use to attend the teleconference on the 30. October entitled. To participate, please dial the toll-free number 1-888-789-9572 (Canada and USA) or 1-416-695-7806 (International) and enter your personal access code and PIN code. The teleconference is recorded and can be up to 5. November 2013 using the dial-in number 1-800-408-3053 (Canada and USA) or 1-905-694-9451 (International) and specifying the access key 4685359. An audio webcast (live and recorded) is also available on the company's website at www.timminsgold.com.
About Timmins Gold
Timmins Gold has set up a commercial gold mining operation in San Francisco, Sonora State, Mexico, in its in-house gold concession. The mine is a day-to-day leach operation and will produce 2013 ounces of gold in 118.000, according to Timmins Gold's forecast.
For the Board: For more information, please contact:
Bruce Bragagnolo, LLB Alex P. Tsakumis
Chief Executive Officer Vice President, Corporate Development
604-638-8980 604-638-8976
ppgad@pucrs.br ppgad@pucrs.br
The TSX and its regulators (designated in the Articles of Incorporation of the TSX Regulation Services Provider) and the New York Stock Exchange (NYSE MKT) accept no responsibility for the adequacy or accuracy of this release.
Cautionary statement regarding forward-looking statements
Certain statements in this press release may be forward-looking statements that have been made in accordance with the Safe Harbor provisions of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities laws. Forward-looking statements are statements that relate to future events. Such statements include, but are not limited to, estimates, projections, and statements of management expectations, including future business performance, financial performance, various calculations and estimates, future trends, plans, strategies, goals, and expectations. This includes production, exploration drilling, reserves and resources, production activities and future events or future operations. Information derived from the analysis of the drill results and information about the resource estimates may also be forward-looking statements, as these are predictions as to whether or not there will be any actual discovery of the project.
In some cases, such forward-looking statements may be expressed in terms such as "could," "should," "anticipates," "plans," "intends," "believes," "estimates," "forecasts," "potential," or "future." "Or recognize their negations or similar terms. These statements are only predictions and are subject to known and unknown risks, uncertainties and other factors that may cause our actual results or the results of our industry, and the related activities, performance or achievements to be materially different from future results, activities, achievements or deviate from those stated directly or indirectly in these forward-looking statements.
These forward-looking statements and any assumptions on which they are based are given in good faith and are based on our current view of the performance of our business. However, actual results will almost always, if not significantly, differ from estimates, expectations, projections, assumptions, or other anticipated future results. Timmins Gold does not intend to update any forward-looking statements to reflect actual results except as required by applicable laws.
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