Scorpio Gold Reports Q2 Financial Results

Scorpio Gold Corporation (TSXV:SGN) has announced its financial results for the second quarter ended June 30, 2014. The company is well on track to meet its 2014 production forecast of 40,000 to 45,000 ounces gold.

As quoted in the press release:

Highlights for the Second Quarter Ended June 30, 2014:

• 9,034 ounces of gold produced compared to 10,769 ounces produced during Q2 of 2013. In late June 2014, an additional carbon column was installed which is expected to increase the rate of processing of pregnant leach solution and thereby bring down leach pad inventory and consequently increase gold production. 
• Revenue of $10.6 million compared to $14.8 million during Q2 of 2013, due to a lower number of ounces of gold sold at a lower average gold price. 
• Total cash cost per ounce of gold sold(1) of $815 compared to $713 during Q2 of 2013, mainly attributable to mining a lower grade of ore. 
• Mine operating earnings (1) of $1.0 million compared to $3.7 million during Q2 of 2013. 
• Net earnings of $0.6 million ($0.00 basic and diluted per share) compared to a net loss of $7.8 million ($0.05 basic and diluted per share) following non-cash impairment charges of $9.9 million ($0.06 basic and diluted per share) during Q2 of 2013. 
• Adjusted net earnings (1) of $0.5 million ($0.00 basic and diluted per share) compared to $2.7 million ($0.01 basic and diluted per share) during Q2 of 2013. 
• Adjusted EBITDA (1) of $3.4 million ($0.02 basic and diluted per share) compared to $8.4 million ($0.05 basic and diluted per share) during Q2 of 2013, as a result of lower revenue and higher cash costs. 
• Cash flow from operating activities (1) of $2.2 million, down from $5.4 million during Q2 of 2013, as a result of lower revenue and higher cash costs. 

Highlights for the Six-Month Period Ended June 30, 2014:

• 19,328 ounces of gold produced compared to 18,180 ounces produced during the six months ended June 30, 2013. 
• Revenue of $23.9 million compared to $26.5 million during the six months ended June 30, 2013, mainly due to increased production which resulted in a higher number of ounces of gold sold, but at a lower average gold price. 
• Total cash cost per ounce of gold sold(1) of $803 compared to $738 during the six months ended June 30, 2013, mainly attributable to a lower head grade. 
• Mine operating earnings (1) of $2.4 million compared to $7.2 million during the six months ended June 30, 2013. 
• Net earnings of $1.0 million ($0.00 basic and diluted per share) compared to a net loss of $5.7 million ($0.04 basic and diluted per share) following non-cash impairment charges of $9.9 million ($0.06 basic and diluted per share) during the six months ended June 30, 2013. 
• Adjusted net earnings (1) of $0.9 million ($0.00 basic and diluted per share) compared to $4.8 million ($0.02 basic and diluted per share) during the six months ended June 30, 2013. 
• Adjusted EBITDA(1) of $7.3 million ($0.04 basic and diluted per share) compared to $15.3 million ($0.08 basic and diluted per share) million during the six months ended June 30, 2013, as a result of lower revenue and higher cash costs. 
• Cash flow from operating activities (1) of $5.4 million, down from $11.5 million during the six months ended June 30, 2013, as a result of lower revenue and higher cash costs. 
• Sale of the Pinon property completed 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.

Scorpio Gold CEO, Peter Hawley, said:

Following another strong quarter at Mineral Ridge, the Company is well on track to meet its 2014 production forecast of 40,000 to 45,000 ounces gold at a cash cost of $800 to $850 per ounce of gold sold. Operational excellence remains the Company’s key focus, and with the new carbon column tower coming on line as planned at the end of Q2, continued performance through the second half of 2014 is fully expected. We are very proud of our Mineral Ridge operations team, which continues to deliver solid results despite a lower average gold price.

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