Scorpio Gold Increases Revenue, Posts Earnings of $275,000

Scorpio Gold (TSXV:SGN) released its third quarter results on Thursday, showing increased revenue and net earnings of $275,000. Revenue jumped to $14.8 million – $4 million more than the previous year – on the back of gold ounces being sold.

According to the press release, some highlights include:

• 11,228 ounces of gold produced compared to 9,632 during Q3 of 2013. In late June 2014, an additional carbon column was installed which increased the rate of processing of pregnant leach solution and thereby brought down leach pad inventory and consequently increased gold production.
• Revenue of $14.8 million compared to $14.4 million during Q3 of 2013, as a result of the sale of 3% more gold ounces in Q3 of 2014 than Q3 of 2013.
• Total cash cost per ounce of gold sold(1) of $859 compared to $729 during Q3 of 2013, mainly attributable to lower head grades.
• Mine operating earnings(1) of $1.2 million compared to $1.8 million during Q3 of 2013.

Peter Hawley, CEO, said:

Based on the first nine months of production at Mineral Ridge in 2014, Scorpio Gold remains on track to meet its forecast of 40,000 to 45,000 ounces gold produced for the current year. In the face of declining gold prices, the Company continues to deliver positive financial results and has increased gold production by 9.9% compared to the first nine months of 2013. While cost per ounce increased in 2014 over the same period last year, largely attributable to mining and processing of lower grade material, we have begun to cycle into higher grade ore in the Mary pit which should allow us to meet our forecast total cash cost of $800 to $850 per ounce of gold sold for 2014.

Click here to read the Scorpio Gold Corporation (TSXV:SGN) press release
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