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Timmins Gold Corp. (TSX:TMM) reported its financial results for the second quarter of 2012, including a profit from operations of $13.6 million.
Timmins Gold Corp. (TSX:TMM) reported its financial results for the second quarter of 2012, including a profit from operations of $13.6 million.
As quoted in the press release:
Q2 2012 HIGHLIGHTS
- Metal revenues were $38.2 million, compared to $27.0 million during the same prior year period. This represents a 41% increase over the prior year.
- Profit from operations was $13.6 million, compared to $10.4 million during the same prior year period. This represents a 31% increase over the prior year.
- Cash flows from operations were $7.5 million, compared to $6.0 million during the same prior year period. After excluding changes in non-cash working capital items, finance expense paid, and income tax paid the cash flows were $17.5 million, compared to $15.5 million during the same prior year period.
- Increased cash to $21.2 million at June 30, 2012 after investing $2.0 million on drilling and $2.0 million on plant and equipment.
- The Company produced a record 23,203 ounces of gold and sold 23,499 ounces of gold, compared to 16,676 and 17,965, respectively, during the same prior year period.
- The Company’s cash cost per ounce on a by-product basis was $758 compared to $740 in Q1 2012. The quarter over quarter increase is attributed to 2011 variable compensation of $0.3 million paid ($14 per gold ounce) in Q2 2012. GAAP required this payment to be booked in the current period. Management began accruing for the 2012 variable compensation ($4 per gold ounce) in June, 2012, which is expected to be negotiated and paid in May, 2013.
- A planned 50,000 meter drill program for the San Francisco Gold Project began in Q2 2012. Currently there are four reverse circulation drill rigs and one core rig on site. Additionally, the 5,000 meter core drill program at the San Onesimo project in Zacatecas, Mexico, commenced in July, 2012.
- The expansion program continued with the installation of a new higher capacity tertiary crusher.
Mr. Bruce Bragagnolo, CEO of Timmins Gold Corp., commented:
Q2 was a strong quarter operationally as demonstrated by increased profit from operations. During the quarter we began implementing a comprehensive cost reduction program, the results of which should be seen in the upcoming quarters. We continue with our expansion program and have installed and tested a larger capacity tertiary crusher and screen. The installation of a pre-screening system to increase capacity from the San Francisco crushing circuit by between 6,000 to 8,000 tpd is on schedule with over 80% of the equipment on site. The Company continues to fund all of its operations, expansion and drilling from existing cash flows. The Company believes it is well positioned to continue realizing current gold prices, generating strong margins and increased cash flow from operations.
Click here to read the full press release.
