2012-11-14 23:19:55 -
TORONTO, ONTARIO -- (Marketwire) -- 11/14/12 --
(All currency figures are in Canadian Dollars unless otherwise noted)
High River Gold Mines Ltd. (TSX:HRG) ("High River" or the "Company") today reported its financial position and operational results for the three month period ended September 30, 2012. The Unaudited Interim Condensed Consolidated Financial Statements and related Notes along with the Management's Discussion and Analysis have been filed on SEDAR (www.sedar.com) and can be viewed on the Company's website at www.hrg.ca.
HIGHLIGHTS FOR THE THIRD QUARTER 2012
-- Net gold revenue of $142.6 million, an increase of 5% from $135.5
million in Q2 2012, an increase of 28% from $111.5 million in Q3 2011.
-- Net income attributable to equity holders of $35.5 million ($0.04 per
share) compared to a net income of $31.5 million ($0.04 per share) in Q2
2012 and a net income of $41.3 million (0.05 per share) in Q3 2011.
-- Cash flow from operations of $57.9 million, up from $49.8 million in Q2
2012, and up from $23.1 million in Q3 2011.
-- Cash and cash equivalents increased to $55.0 million from $18.0 million
at the end of Q2 2012, and down from $150.0 million at the end of Q3
-- Working capital decreased to $212.4 million from $214.8 million at the
end of Q2 2012, down from $296.0 million at the end of Q3 2011.
-- Current and long term debt increased to $10.3 million from $10.1 million
at the end of Q2 2012 and decreased from $22.7 million at the end of Q3
-- Total gold production decreased 5% to 86,906 ounces (Q3 2011 - 91,057
ounces) (100%). Total cash cost per ounce increased 11% to US$804 per
ounce (Q3 2011 - US$720 per ounce).
-- The Zun-Holba and Irokinda gold mines produced 23,891 ounces (Q3 2011 -
34,100 ounces) (100%) at a total cash cost of US$997 per ounce.
-- The Taparko-Bouroum gold mine produced 29,774 ounces (Q3 2011 - 31,391
ounces) (100%) at a total cash cost of US$817 per ounce.
-- Gold production at the Berezitovy mine was 33,241 ounces (Q3 2011 -
25,565 ounces) (100%) at a total cash cost of US$654 per ounce.
-- The Bissa project is on track to deliver first gold in H1 2013 and we
now believe that production of gold at Bissa can be started in the
earlier part of the announced period. Mining fleet is available on site
and started pre-stripping of the pits, while part of the fleet is
assisting the tailings storage facility construction. Ball and SAG mills
are installed and mechanical alignment is complete. CIL tanks are
installed, while piping and other auxiliary mechanical equipment
installation and most of electrical work is still to be finished.
DISCUSSION OF FINANCIAL RESULTS
Selected Financial Results
The Company reported a net income of $35.5 million ($0.04 per share) in Q3 2012 compared to a net income of $31.5 million ($0.04 per share) during Q2 2012 and net income of $41.3 million ($0.05 per share) in Q3 2011.
About High River
High River is an unhedged gold company with interests in producing mines, development and advanced exploration projects in Russia and Burkina Faso. Two underground mines, Zun-Holba and Irokinda, are situated in the Lake Baikal region of Russia. Two open pit gold mines, Berezitovy in Russia and Taparko-Bouroum in Burkina Faso, are also in production. Finally, High River has a 90% interest in a development project, the Bissa gold project in Burkina Faso, and a 50% interest in an advanced exploration project with NI 43-101 compliant resource estimates, the Prognoz silver project in Russia.
FORWARD LOOKING INFORMATION
This release contains forward-looking statements. Wherever possible, words such as "intends", "expects", "scheduled", "estimates", "anticipates", "believes", and similar expressions or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, have been used to identify these forward-looking statements. Although the forward-looking statements contained in this release reflect management's current beliefs based upon information currently available to management and based upon what management believes to be reasonable assumptions, High River cannot be certain that actual results will be consistent with these forward-looking statements. A number of factors could cause events and achievements to differ materially from the results expressed or implied in the forward-looking statements. These factors should be considered carefully and prospective investors should not place undue reliance on the forward-looking statements. Forward-looking statements necessarily involve significant known and unknown risks, assumptions and uncertainties that may cause High River's actual results, events, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Although High River has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors and risks that cause actions, events or results not to be anticipated, estimated or intended, including those risk factors discussed in the Company's most recent Annual Information Form. There can be no assurance that the forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, prospective investors should not place undue reliance on forward-looking statements. Any forward-looking statements are made as of the date of this release, and High River assumes no obligation to update or revise them to reflect new events or circumstances, unless otherwise required by law.
High River Gold Mines Ltd.
011 7 495 981 0910 ext. 6821 firstname.lastname@example.org