(In US Dollars unless otherwise stated)
Third Quarter Highlights
- Safety performance improved during the quarter with a 27% reduction in the total reportable frequency rate compared to the previous quarter, down 56% YTD. Our safety improvement program is progressing and on track
- Production of 15,946 ounces of gold, a 5% increase compared to the previous quarter and an 18% decrease over the comparative quarter of 2021 as a result of lower grades in both the underground and surface material milled
- Sold 14,875 ounces of gold at total cash costs1 of
$1,789 per ounce sold, an increase of$448 per ounce sold or 33% in comparison to the third quarter of 2021 due to fewer ounces produced - All-in sustaining costs1 increased by
$536 per ounce sold or 37%, in comparison to the third quarter of 2021, to$1,989 per ounce sold, above the average realized gold price1 of$1,722 per ounce, due to higher total cash costs1 as well as higher sustaining exploration and capital expenditures1 - Milled 439kt of ore, an 8% increase over the previous quarter and Q3 2021 following successful mill maintenance shutdowns in the first half of the year
- Announced the temporary suspension of Mining at Main Pit Deeps
- Cash equivalents of
$11.6 million - Secured a
A$10 million debt financing withAuramet International onOctober 7, 2022
1 Please refer to the Non-IFRS Measures disclosure included in this news release for a description of this non-IFRS measure.
After significant consideration and review, it was decided to temporarily suspend mining activity in the
Looking ahead to the remainder of this year and into 2023, the operating focus will revert solely to the underground mine. The goal is to accelerate development to unlock new mining areas of the mine as identified from our successful mineral exploration program. We continue to see a marked improvement in underground development rates following the delivery and commissioning of a new development jumbo late in the third quarter. Targeting sustained higher development rates are expected to add additional stope inventory to the mine over time while providing greater operational flexibility. We are on track to meet our revised 2022 annual production guidance of between 62,000 and 65,000 ounces."
Three months ended | Nine months ended Sep 30, 2022 | |
All amounts in $ millions except where noted | ||
Financial | ||
Revenue | 25.7 | 87.4 |
Cost of sales | 29.5 | 87.7 |
General and administrative | 1.5 | 4.7 |
Operating income (loss) | (5.9) | (7.0) |
Income (loss) before taxes | (6.1) | (7.8) |
Net income (loss) | (4.0) | (4.5) |
Earnings (loss) per share - basic and diluted | (0.03) | (0.04) |
Adjusted net income (loss)1 | (4.0) | (4.5) |
Adjusted net income (loss) per share - basic1 | (0.03) | (0.04) |
Cash flow from operations after working capital changes | 1.9 | 11.1 |
Weighted average number of common shares outstanding (basic) | 123,228,995 | 123,058,645 |
Operational | ||
Gold produced (ounces) | 15,946 | 47,888 |
Gold sold (ounces) | 14,875 | 47,424 |
Total cash costs ($/ounce)1 | 1,789 | 1,697 |
All-in sustaining costs ($/ounce)1 | 1,989 | 1,881 |
Average realized gold price1 ($/ounce) | 1,722 | 1,839 |
Total underground material mined (Kt) | 178 | 591 |
Total material milled (Kt) | 439 | 1,205 |
Grade milled (g/t gold) | 1.3 | 1.5 |
Recovery (%) | 86 | 85 |
1 Please refer to the Non-IFRS Measures disclosure included in this news release for a description of this non-IFRS measure.
The Plutonic Gold Operations produced and sold 15,946 and 14,875 ounces of gold, respectively, for the third quarter of 2022, a decrease of 18% and 23% respectively over the comparative prior-year period due to lower grade and tonnes milled from both the underground and open pit operations with operational underperformance impacting the Main Pit Deeps project. Production has, however, increased quarter on quarter by 5%. The reductions in tonnes and grade milled were partially mitigated by a significant increase in the processing of low-grade stockpiles that were identified and mined within the main pit as part of the Main Pit Deeps project. Total cash costs of
In comparison, 19,379 and 19,282 ounces of gold were produced and sold, respectively for the third quarter of 2021. Total cash costs of
The Company generated a net loss from operations of
The Company continued its exploration program to focus on organic growth and opening new mining fronts in the underground mine. For the three months ended
The Company also released further drilling results during the third quarter in a news release dated
Management will host a conference call and webcast on
Local or International: +1 416 764 8659
Webcast: https://app.webinar.net/rNwZPy3Dxyz
Local or International: +1 416 764 8677
Passcode: 782552#
The conference call replay will be available for 365 days.
The presentation will be available on the Company's website at www.superior-gold.com.
The scientific and technical information in this news release has been reviewed and approved by
Continue to Follow, Like and Watch our progress:
Web: www.superior-gold.com | Twitter: @SuperiorGoldInc | Facebook: SuperiorGoldInc | Instagram: SuperiorGoldInc | LinkedIn:
This news release contains "forward-looking information" within the meaning of applicable securities laws that are intended to be covered by the safe harbours created by those laws. "Forward-looking information" includes statements that use forward-looking terminology such as "may", "will", "expect", "anticipate", "believe", "continue", "potential" or the negative thereof or other variations thereof or comparable terminology. Forward-looking information includes information with respect to guidance as to projections, outlook, guidance, forecasts, estimates, and other statements regarding future or estimated financial and operational performance, gold production and sales, revenues and cash flows, and capital costs (sustaining and non-sustaining), including projected cash operating costs and all-in sustaining costs) as well as statements with respect to the mine plan, exploration, drilling, operating, and organizational matters and activities relating to the Plutonic Gold Operations and the Company generally, including its liquidity and capital requirements, financial results, the Company's annual production guidance, the benefits of targeting sustained higher development rates and management's focus on underground mining. By identifying such information in this manner, the Company is alerting the reader that such information is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.
Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made, including but not limited to, assumptions about assumptions about the Company's future business objectives, goals, and capabilities, the regulatory framework applicable to the Company and its operations, and the Company's financial resources. Furthermore, such forward-looking information involves a variety of known and unknown risks and uncertainties, including, but not limited to, risks and uncertainties related to (i) the available funds of the Company and the anticipated use of such funds, (ii) the availability of financing opportunities, (iii) legal and regulatory risks, (iv) risks associated with economic conditions, (v) risks related to the Company's underground mining operations, (vi) risk of litigation, (vii) risks related to the ongoing COVID-19 pandemic, and its impact on the Company's operations (viii) risks related to the resumption of operations at the Main Pit Deeps project, (ix) reliance on the expertise and judgment of senior management, and ability to retain such senior management, * risks relating to the management of growth and other factors which may cause the actual plans, intentions, activities, results, performance, or achievements of the Company to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking information. Readers are encouraged to refer to the annual information form of the Company dated
The Company cautions that there can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, investors should not place undue reliance on forward-looking information as no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, and if any of them do so, what benefits the Company will derive therefrom. Except as required by law, the Company does not assume any obligation to release publicly any revisions to forward-looking information contained in this news release to reflect events or circumstances after the date hereof.
Neither the
The Company's financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS"). For a more comprehensive overview of the financial and operating highlights presented in this news release, please refer to the Company's Management's Discussion and Analysis of Financial Condition and Results of Operations for the Three and Nine Months Ended
The Company uses "total cash costs", which is a non-IFRS financial measure intended to reflect, as close as possible, the direct cost of producing and selling an ounce of gold. The Company uses "All-in Sustaining Costs" or "AISC", which is a non-IFRS financial ratio intended to provide investors with transparency regarding the total costs of producing and selling one ounce of gold in the relevant period. The Company uses "average realized gold price", which is a non-IFRS financial measure. Realized gold price is calculated as metal sales per the Financial Statements, less silver sales.
For a further discussion of the use of these non-IFRS financial measures and for a reconciliation to the most directly comparable IFRS measure for the three and nine months ended
View original content to download multimedia:https://www.prnewswire.com/news-releases/superior-gold-reports-third-quarter-results-301687512.html
SOURCE
© Canada Newswire, source