Timmins Gold Reports 2014 Financial Results

Timmins Gold Corp. (TSX:TMM) announced its financial results for 2014, which show earnings and total comprehensive income of US$9.2 million or $0.06 per share, compared to US$15.3 million or $0.11 per share in 2013. The company noted any decrease in revenues was mainly due to a lower average realized gold price which was partially offset by an increase in the total ounces of gold sold.

Some highlights from the 2014 final year results include:

• Metal revenues were $154.1 million, compared to $160.6 millions during 2-13. This represents a 4.1 percent decrease over the prior year, primarily due to a lower average realized gold price partially offset by an increase in the total ounces of gold sold
• Earnings from operations were $22.2 million, compared to $41.1 million during 2013. This represents a 46.1 percent increase over the prior year. Increased production was offset by reduced revenues resulting from the lower gold price and an increase in production costs resulting from decreased grade, record rainfall and higher diesel usage
• Earnings and total comprehensive income were $9.2 million or $0.06 per share, compared to $15.3 million or $0.11 per share in 2013. This represents a 40.1 percent and 43.6 percent decrease respectively, over the prior year. This decrease is mainly the result of lower earnings from operations which was partially offset by a significant decrease in tax expense compared to the prior year
• Cash flows provided by operating activities were $33.1 million or $0.20 per share, compared to $52.4 million or $0.36 per share during 2013. This represents a 36.9 percent and 43.7 percent decrease respectively, over the prior year

Bruce Bragagnolo, CEO of Timmins Gold, commented:

2014 was a strong year operationally as we reached our guidance for both ounces produced and cash costs. Drilling directly below the San Francisco pit identified multiple high grade veins sub-parallel to the pit wall, extending along strike and open down dip below the pit and our regional exploration program was successful in confirming areas for high priority follow up drilling. Timmins Gold is performing economic studies to determine the most cost effective method of mining the high grade veins.

In addition, we bolstered our growth profile by completing the acquisition of the Caballo Blanco open pit heap leach project and subsequent to the year end we announced a merger with Newstrike Capital Inc. These two transactions position Timmins Gold to become a mid-tier producer with an average annual gold production of over 325,000 ounces and industry leading all-in sustaining cash costs of approximately $775 per ounce.

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