Roxgold Reports 2015 First Quarter Financial and Operational Results

Roxgold Inc. (TSXV:ROG) announced its 2015 first quarter results in the three months ending March 31, which showed a net loss of $1.5 million or $0.01 per share. The company also included development highlights from its Yaramoko project in Burkina Faso.

As quoted in the press release:

The $55,000 net increase of share-based payment costs (“SBC”) is due in part to higher stock option and restricted stock unit costs of $136,000 associated with a larger grant of units during the current year’s annual stock option grant as compared to the 2014 annual grant, which is reflective of the growing management team. Reducing SBC was an $81,000 decrease in the valuation of cash-settled deferred stock units outstanding as compared to the same period in 2014.

The other income during the first quarter is mainly due to a foreign exchange gain in relation to the cash on hand as more than 50% of cash was held in US Dollars (“USD”) while the cash balance was mainly held in Canadian dollars as at March 31, 2014.

The deferred income tax expense is associated with the foreign exchange revaluation of non-monetary assets. This is primarily due to the deferred tax liabilities being denominated in CFA while the functional currency of the Company’s Burkina Faso subsidiaries is USD.

As a result, the Company generated a net loss for the three-month period ended March 31, 2015 of $1,506,000, or a loss of $0.01 per share, compared to a net loss of $1,271,000 for the same period in 2014, or a loss of $0.01 per share.

Highlights from 2015 first quarter:

• Received the mining decree for the Yaramoko project;
• Secured commitment of US$37.5 million from BNP Paribas for a total commitment of US$75 million (the “Debt Facility”) together with Société Générale Corporate and Investment Banking;
• Completed the compensation process for affected landholders on the Yaramoko property;
• Selected the DRA / Group Five Joint Venture (“JV”) as its Engineering, Procurement and Construction (EPC) contractor for the Yaramoko project;
• Initiated early stage construction works such as bulk earthworks; and
• Commenced 55 Zone infill drilling and regional exploration program.

Events following March 31:

The Company updated its pre-production capital cost estimate for the Yaramoko project to US$110.8 million, an increase of approximately 4% from the amount in the Feasibility Study published in April 2014 resulting primarily from scope changes.

The earthworks and camp construction contractor, De Simone, mobilised towards the end of March 2015 to commence construction on the new accommodation camp for the Yaramoko project. Construction of the project’s water storage facility, tailings storage facility, roads and terracing for the processing plant also commenced in late March.

The detailed mechanical and electrical design of the process plant was completed early in the first quarter of 2015, while manufacturing of the SAG Mill progressed with delivery anticipated during the third quarter of 2015.

Click here to read the full Roxgold Inc. (TSXV:ROG) press release.