Vancouver, November 24, 2016 - Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX-V: SGN) is pleased to announce its financial results for the third quarter ended September 30, 2016 ("Q3"). This press release should be read in conjunction with the Company's condensed interim consolidated financial statements for Q3 of 2016 and Management Discussion & Analysis for the same period, 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.
|Q3 2016||Q3 2015||Nine Months
|Mine operating earnings (000's)||3,177||1,766||8,109||6,239|
|Net earnings (loss) (000's)||2,331||(15,823)||4,609||(13,321)|
|Basic and diluted earnings (loss) per share||0.01||(0.11)||0.02||(0.10)|
|Adjusted net earnings(1) (000's)||2,484||1,128||5,768||3,879|
|Adjusted basic and diluted net earnings per share(1)||0.01||0.01||0.03||0.02|
|Adjusted EBITDA(1) (000's)||3,508||3,208||7,893||7,946|
|Adjusted basic and diluted EBITDA per share(1)||0.02||0.02||0.04||0.04|
|Cash flow from operating activities (000's)||5,906||2,271||10,418||11,223|
|Total cash cost per ounce of gold sold(1)||956||732||883||779|
|Gold ounces sold||10,000||8,516||28,315||29,141|
|Gold ounces produced||9,981||9,497||28,578||30,187|
Brian Lock, Interim CEO, comments: "We are very pleased to report strong financial results for Q3 and for the first nine months of 2016. These favorable financial results largely result from the sale of 17% more ounces of gold in Q3 of 2016 compared to Q3 of 2015 at a realized price which was 22% higher during Q3 of 2016 compared to Q3 of 2015. For the nine month period ended September 30, 2016, the realized gold price was 7% higher compared to same period of 2015. Production for the third quarter of 2016 remained high at 9,981 ounces of gold compared to 9,497 for Q3 of 2015.
"With 28,578 ounces of gold produced for the nine month period ended September 30, 2016, at a total cash cost of $883 per ounce, the Company expects to be at the higher end of the 30,000-35,000 ounces of gold produced range, and in the lower end of $900-$950 for estimated total cash cost per ounce of gold sold as per the previous revised guidance for the 2016 year."
Highlights for the Third Quarter Ended September 30, 2016:
- 9,981 ounces of gold produced at the Mineral Ridge mine, compared to 9,497 produced during Q3 of 2015.
- 10,000 ounces of gold sold, compared to 8,516 ounces sold during Q3 of 2015.
- Revenue of $13.3 million compared to $9.3 million during Q3 of 2015.
- Total cash cost per ounce of gold sold(1) of $956 compared to $732 during Q3 of 2015.
- Mine operating earnings of $3.2 million compared to $1.8 million during Q3 of 2015.
- Net earnings of $2.3 million ($0.01 basic and diluted per share), compared to net loss of $ 15.8 million ($0.11 basic and diluted per share) during Q3 of 2015.
- Adjusted net earnings(1) of $2.5 million ($0.01 basic and diluted per share) compared to $1.1 million ($0.01 basic and diluted per share) during Q3 of 2015.
- Adjusted EBITDA(1) of $3.5 million ($0.02 basic and diluted per share) compared to $3.2 million ($0.02 basic and diluted per share) during Q3 of 2015.
- Cash flow from operating activities of $5.9 million compared to $2.3 million during Q3 of 2015.
- On August 10, 2016 the Company announced the resignation of Peter J. Hawley from the position of president, effective on that date, for personal reasons. Mr. Hawley also retired from the position of CEO of the Company on November 1, 2016. Mr. Hawley remains as Chairman and a Director of the Company. The Company also announced the promotion of Chris Zerga to the position of President effective August 10, 2016. Brian Lock, a current Director of the Company, was appointed as Interim CEO effective November 2, 2016.
Highlights for the Nine Months Ended September 30, 2016
- 28,578 ounces of gold produced at the Mineral Ridge mine, compared to 30,187 during the nine months ended September 30, 2015.
- 28,315 ounces of gold sold, compared to 29,141 ounces sold during the nine months ended September 30, 2015.
- Revenue of $35.2 million compared to $33.8 million during the nine months ended September 30, 2015.
- Total cash cost per ounce of gold sold(1) of $883 compared to $779 during the nine months ended September 30, 2015.
- Mine operating earnings of $8.1 million compared to $6.2 million during the nine months ended September 30, 2015.
- Net earnings of $4.6 million ($0.02 basic and diluted per share) compared to net loss of $13.3 million ($0.10 basic and diluted per share) during the nine months ended September 30, 2015.
- Adjusted net earnings(1) of $5.8 million ($0.03 basic and diluted per share) compared to $3.9 million ($0.02 basic and diluted per share) during the nine months ended September 30, 2015.
- Adjusted EBITDA(1) of $7.9 million ($0.04 basic and diluted per share) compared to $7.9 million ($0.04 basic and diluted per share) during the nine months ended September 30, 2015.
- Cash flow from operating activities of $10.4 million, compared to $11.2 million during the nine months ended September 30, 2015.
(1) This is a non-IFRS measure; refer to Non-IFRS Measures section of this press release and the Company's Management Discussion & Analysis for Q3 of 2016 for a complete definition and reconciliation to the IFRS results reported in the Company's financial statements for Q3 of 2016.
The discussion of financial results in this press release includes reference to Adjusted EBITDA, Total cash cost per ounce of gold sold 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 Management Discussion & Analysis for Q3 of 2016 for definitions of these terms and a reconciliation of these measures to reported IFRS results.
About Scorpio Gold
Scorpio Gold holds a 70% interest in the Mineral Ridge gold mining operation located in Esmeralda County, Nevada with joint venture partner Elevon, LLC (30%). Mineral Ridge is currently in production as a conventional open pit mining and heap leach operation. The Mineral Ridge property is host to multiple gold-bearing structures, veins and lenses at exploration, development and production stages. Scorpio Gold also holds a 100% interest in the advanced exploration-stage Goldwedge property in Manhattan, Nevada, with a fully permitted underground mine and 400 ton per day mill facility. The Goldwedge mill facility has been placed on a care and maintenance basis and can be restarted immediately when needed.
Scorpio Gold's Chairman, Peter J. Hawley, PGeo,, is a Qualified Person as defined by National Instrument 43-101 and has reviewed and approved the content of this release.
ON BEHALF OF THE BOARD
SCORPIO GOLD CORPORATION
For further information contact:
Chris Zerga, President
Tel: (819) 825-7618
Jag Sandhu, JNS Capital Corp.
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.
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, development and exploitation of its Mineral Ridge project, including any forecasts regarding future production or costs related thereto. 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 relating to operation of a gold mine, including unanticipated changes in the mineral content of materials being mined; unanticipated changes in recovery rates; changes in project parameters; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; availability of skilled labour and the impact of labour disputes; obtaining the required permits to expand and extend mining activities; delays in obtaining governmental approvals; changes in metals prices; the availability of cash flows or financing to meet the Company's ongoing financial obligations; unanticipated changes in key management personnel; changes in general economic conditions; obtaining the required permits to expand and extend mining activities; the outcome of the litigation with National and other risks of the mining industry 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.