Timmins Gold Records 2013 Metal Revenues of $160.6 Million

Timmins Gold Corp. (TSX:TMM,NYSEMKT:TGD) announced on Friday its financial results for the year ended December 31, 2013, commenting that its metal revenues came to $160.6 million. That’s up from $156.2 million in 2012, largely due to the sale of increased ounces.

Earnings from operations, however, came in at $41.1 million, down 35 percent from the previous year.

Other highlights include:

• Earnings and total comprehensive income were $15.3 million or $0.11 per share, compared to $37.7 million or $0.26 per share during 2012. This represents a 59% and 58% decrease, respectively, over the prior year. This decrease was significantly affected by the non-cash impairment charge of $6.3 million and a one-time non-cash deferred income tax expense of $8.6 million as a result of the Tax Reform approved in Mexico during December 2013.

• Adjusted earnings and total comprehensive income were $30.3 million or $0.21 per share, compared to $37.7 million or $0.26 per share during 2012. This represents a 20% and 19% decrease, respectively, over the prior year.

• Cash flows provided by operations were $52.4 million or $0.36 per share, compared to $51.1 million or $0.36 per share during 2012. This represents a 3% increase over the prior year.

• Cash at December 31, 2013 was $22.8 million after investing $13.7 million on exploration, $4.6 million on sustaining capex, $20.0 million on expansion programs and $14.3 million on deferred stripping. Cash at December 31, 2012 was $24.2 million after investing $11.8 million on exploration, $4.8 million on sustaining capex, $13.8 million on expansion programs and $8.2 million on deferred stripping.

Bruce Bragagnolo, CEO of Timmins, commented:

We finished 2013 with a record fourth quarter and are extremely encouraged that we were able to add $8.7 million to our cash balance during this quarter. This level of free cash flow generation clearly highlights the low all-in cost nature of our San Francisco operation. The Company’s 2014 goal is to produce between 115,000 to 125,000 ounces of gold. With no significant capital expenditures planned for 2014 we are well positioned to continue to generate strong free cash flow.

Click here to read the full Timmins Gold Corp. (TSX:TMM,NYSEMKT:TGD) press release.