San Gold Reports 2012 Q1 Results

WINNIPEG, MANITOBA — San Gold Corporation (TSX:SGR)(OTCQX:SGRCF). With greatly improved operating cash flow and cash costs, and record gold production, the Company is pleased to announce its quarterly financial and operating results for the first quarter of 2012.

2012 Q1 Financial and Operating Highlights

• Produced a record 22,162 ounces of gold, a 51% increase compared to 14,688 ounces in the first quarter of 2011.
• Recognized record quarterly revenue of $35.5 million on gold sales of 21,322 ounces at a realized price of $1,665 per ounce, a 79% increase from revenue of $19.8 million in the first quarter of 2011.
• Achieved record average mill throughput of 1,687 tons per day for the quarter, an 85% increase compared to average mill throughput of 920 tons per day in the first quarter of 2011.
• Achieved total cash costs of $840 per ounce of gold sold compared to $862 per ounce sold in the first quarter of 2011.
• Realized a cash operating margin of $825 per ounce of gold sold with a realized price of $1,665 per ounce through the quarter.
• Had a cash and cash equivalents balance of $36.2 million as at March 31, 2012.
• Appointed Mr. Torben Jensen as Vice-President, Corporate Development in the subsequent period.

“It is incredible to see the mining complex taking shape in Rice Lake. Rice Lake has now reached the point where the cash contribution from operations is financing substantial vertical and lateral development in the 007 and Hinge zones. Development work continued ahead of schedule during the quarter, providing additional flexibility to our mine planners. With total tonnage now on budget, we believe this flexibility is critical to refining the mining sequence toward improving overall production volumes,” said George Pirie, President and Chief Executive Officer of San Gold.

READ FULL REPORT: [ marketwire.com ]

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Posted by WoodlawnPost on May 9 2012. Filed under Mining, N. America. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.