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Scorpio Gold Corporation (TSXV:SGN) reported its first quarter financial results with the following highlights: 39% increase in gold production at Mineral Ridge, increased revenues of $13.2 million, and the sale of the Pinon property on March 5, 2014.
As quoted in the press release:
Highlights for the First Quarter Ended March 31, 2014:
10,294 ounces of gold were produced at the Mineral Ridge mine during Q1 of 2014, compared to 7,411 ounces during Q1 of 2013. This 39% increase is primarily caused by the fact that production numbers for Q1 of 2013 were negatively impacted by the prior sale of approximately 1,878 ounces of gold and 759 ounces of silver as part of a sale of loaded carbon that accelerated production and revenue in Q4 of 2012.
Increased revenues of $13.2 million compared to $11.7 million during Q1 of 2013, due to a 46% increase in ounces of gold sold offset by a lower average gold price during Q1 of 2014.
Total cash cost per ounce of gold sold(1) of $794 compared to $774 during Q1 of 2013, representing a 3% increase.
Higher production levels during Q1 of 2014 did not completely offset the decrease in the average gold price which consequently negatively impacted the following:
Mine operating earnings(1) of $1.3 million compared to $3.6 million during Q1 of 2013, mainly due to the lower average gold price during Q1 of 2014.
Net earnings and adjusted net earnings(1) of $0.4 million ($0.00 basic and diluted per share), compared to net earnings and adjusted net earnings of $2.1 million ($0.01 basic and diluted per share) during Q1 of 2013.
Adjusted EBITDA (1) of $3.9 million ($0.02 basic and diluted per share) compared to $6.9 million ($0.04 basic and diluted per share) during Q1 of 2013.
Receipt of approval for the new plan of operations at the Mineral Ridge mine in February 2014, which allows for the planned expansion of the Mary pit.
Sale of the Pinon property on March 5, 2014, with approximately $5.2 million of the proceeds from such sale being applied to reduce the Company’s long term debt to less than $6 million as at March 31, 2014.
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