Crocodile Gold Corp. (TSX:CRK,OTCQX:CROCF) announced its results for the three- and six-month periods ended June 30, 2014, commenting that during Q2 it recorded revenue of $69.2 million from the sale of 53,612 ounces of gold. Its net income for the quarter came in at $3.93 million, or $0.01 per share.
Other Q2 financial highlights include:
- Crocodile Gold generated cash flow of $18.2 million or $0.04/share from its three operating mines, an increase over Q2 2013, despite lower average realized gold prices.
- Crocodile Gold ended the quarter with a cash balance of $34.2 million and working capital of $21.4 million.
- Average operating cash costs per ounce* were $965 and all-in sustaining cash costs per ounce* were $1,316 per ounce, both down significantly from the previous year as the Company continues to focus on cost reduction and productivity initiatives.
- Gold production of 54,024 ounces was a 12% improvement over Q2 2013. The Company has produced 107,607 ounces of gold in the first six months of 2014, well on track to meet the upper end of its annual guidance of 200,000 – 210,000 ounces.
Rod Lamond, president and CEO of Crocodile, commented:
Crocodile Gold is continuing to demonstrate that it can be a profitable company in light of the challenging market conditions. Our average operational cash costs have decreased 12% to $965 per ounce compared to $1,102 per ounce in the same period last year. This decrease can be attributed to the efforts at the Cosmo Gold Mine, which continues to perform at consistent production levels while successfully introducing a new mining contractor in the first quarter. As well, cost containment and cash flow monitoring efforts continue at all of our mine sites which have contributed to the positive financial results in the second quarter of 2014.
As we finish the first half of 2014, it is encouraging to see that the Company continues to have positive operational cash flow while achieving its production targets, and is well on track to meet the upper end of 2014 gold production guidance. Crocodile Gold will continue to focus on its philosophy of implementing value-driven investments for the remainder of the year with our primary focus on supporting the Big Hill Enhanced Development Project at Stawell.
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