Rio Alto Records 2014 Net Income of $49.8 Million

Rio Alto Mining Ltd. (TSX:RIO,NYSE:RIOM) announced that in 2014 its net income totaled $49.8 million, or $0.21 per share. Meanwhile, cash flow from operations was $110.9 million.

The company is set to be acquired by Tahoe Resource Inc. (TSX:THO,NYSE:TAHO).

Rio Alto’s Q4 highlights include:

• Net income amounted to $1.5 million, or $0.00 per share.  The recognition of final income tax adjustments occurred in Q4, and therefore resulted in a lower net income for the quarter ended December 31, 2014.
• Net cash provided by operations was $39.2 million.
• Gold produced and sold was 57,908 ounces which were sold at an average realized price of $1,192 per ounce.
• World Gold Council (‘WGC’) adjusted operating costs per ounce of gold sold during the quarter were $549 per ounce.
• WGC all-in sustaining costs per ounce of gold sold were $760 per ounce.
• WGC all-in costs per ounce of gold sold were $819 per ounce.

Highlights for 2014 as a whole include:

• Net income amounted to $49.8 million, or $0.21 per share.
• Net cash provided by operations was $110.9 million.
• Gold produced and sold was 222,255 ounces, of which 209,350 ounces were sold at an average realized price of $1,251 per ounce.
• WGC adjusted operating costs per ounce of gold sold were $576 per ounce.
• WGC all-in sustaining costs per ounce of gold sold were $772 per ounce.
• WGC all-in costs per ounce of gold sold were $879 per ounce.
• On August 5, 2014, the Company completed the acquisition of Sulliden Gold Corporation Ltd. The main asset acquired was the Shahuindo Gold Project.
• Cash of $65.1 million was invested in capital, $4.8 million in exploration activities and $47.9 million to complete the Shahuindo acquisition.
• On July 4, 2014, the Company received funds of $35 million from a loan with BCP Banco de Credito del Peru (‘BCP’).

Alex Black, president and CEO of Rio Alto, commented:

I am very pleased with the Company’s operational and financial performance for 2014. The net cash generated from operations during Q4 of $39.2 million was an outstanding result. Our focused management team at La Arena has been able to deliver costs at, or below our low end of guidance and comfortably exceeded our high end of gold production guidance. The board of directors would like to express its appreciation for the commitment and effort of everyone involved in the operation of the La Arena Gold Mine and look forward to the same team executing and delivering the timely development of the Shahuindo Gold Project in 2015.

Click here to read the full Rio Alto Mining Ltd. (TSX:RIO,NYSE:RIOM) press release.