The following are news from Anaconda( now known as signalgold)- First post since official april name change
April 18, 2022 7:00 AM
Anaconda Mining Reports Q1 2022 Production Results and Announces Change to the Board of Directors
TORONTO, ON / ACCESSWIRE / April 18, 2022 / Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX:ANX)(OTCQX:ANXGF) is today announcing production results and certain financial information from the three months ended March 31, 2022 ("Q1 2022"), as well as providing a production update with regards to a water management issue at the Argyle open pit mine ("Argyle") which impacted mining operations. All dollar amounts are in Canadian Dollars. The Company expects to file its first quarter financial statements and management discussion and analysis by April 28, 2022.
"During the first quarter of 2022, Point Rousse produced 2,813 ounces of gold, an 11% increase compared to the prior year however lower than plan as operational challenges at Argyle required mill throughput to be maintained with low-grade Pine Cove stockpiles. The temperatures at site during the period, fluctuating above and below the freezing point, impacted our ability to drill and blast at times and material handling was impeded due to frozen stockpiles. Moreover, in early March we experienced a water management issue with the detection of ammonia levels in the Argyle pit which exceeded our discharge parameters, thereby impacting our ability to continue mining. The site operations team immediately mobilized a UV water treatment system which achieved an instant improvement in water quality based on independent lab testing. The water quality is now compliant, and the Company has begun discharging water from the pit sump, which should allow for a return to continuous operations this week. The Company is assessing the impact on production for the remainder of the year and will provide further updates accordingly.
The Company confirms that at no time during this incident was any impacted water discharged into the environment, as the Company's robust water management protocols identified the matter in a timely manner. The Company remains committed to the strong environmental management it has demonstrated over the past 10 years of operation in the Baie Verte Peninsula."
~Kevin Bullock, President and CEO, Anaconda Mining Inc.
The Company is also announcing that it has accepted the resignation of its Chairman, Jonathan Fitzgerald, from the Board of Directors to pursue other professional interests. Mary-Lynn Oke has been appointed interim Chair of the Board of Directors while the Company undertakes a search for a new Chair. Furthermore, as a result of his resignation, Mr. Fitzgerald will no longer stand for re-election as a Board member at the Company's annual and special shareholders meeting scheduled for Thursday, May 12, 2022. The remaining five members of the Board will continue to stand for re-election at the shareholder meeting.
"I would like to thank Jonathan for his contributions to the Company's success over the past 5-plus years, particularly in advancing the Goldboro Gold Project. While we fully understand and support his decision to resign and focus his attention on other interests, we appreciate his guidance in setting the Company up for growth and to build significant shareholder value."
~Kevin Bullock, President and CEO, Anaconda Mining Inc.
First Quarter 2022 Highlights
Anaconda sold 3,491 ounces of gold in Q1 2022, generating metal revenue of $8.0 million at an average realized gold price1 of $2,296 (US$1,813) per ounce sold.Point Rousse produced 2,813 ounces of gold in Q1 2022, an 11% increase compared to Q1 2021, however lower than planned due to operational challenges in the Argyle Pit which required mill throughput to be maintained with low-grade Pine Cove stockpiles.Mine operations moved 68,877 tonnes of ore during the first quarter from Argyle, an increase over the previous year but behind plan for 2022, as water management issues impacted the mine's ability to drill and blast in March.The Pine Cove Mill processed 104,495 tonnes during Q1 2022, of which 28,301 tonnes were from low-grade Pine Cove stockpiles. The mill achieved a strong average recovery rate of 86.1% despite the lower-grade profile of mill throughput.For Stog'er Tight, the Company is finalizing internal pit designs in anticipation of a potential development scenario; the Company has now received tree cutting and Crown Land permits and is in the process of finalizing the Mining Lease.Exploration drilling at Point Rousse identified two new mineralized systems within the Goldenville Trend, intersecting 2.09 g/t over 5.7 metres and 1.38 g/t over 5.7 metres (press release dated March 31, 2022).As of March 31, 2022, the Company had a cash balance of $3.6 million and an undrawn revolving credit facility of $3.0 million. Preliminary working capital deficit1 at the end of the quarter was $6.5 million, which includes $3.2 million in deferred revenue associated with a gold prepayment facility which will be delivered into over the next six months. The deficit also reflects the short-term impact of the cessation of mining due to the water management issue.First Quarter Operating Statistics
| | Three months ended March 31, 2022 | | | Three months ended March 31, 2021 | |
Mine Statistics
| |
| | |
| |
Ore production (tonnes)
| | | 68,877 | | | | 59,157 | |
Waste production (tonnes)
| | | 786,515 | | | | 551,706 | |
Total material moved (tonnes)
| | | 855,392 | | | | 610,863 | |
Waste: Ore ratio
| | | 11.4 | | | | 9.3 | |
| | | | | | | | |
Mill Statistics
| | | | | | | | |
Availability (%)
| | | 93.6 | | | | 82.7 | |
Dry tonnes processed
| | | 104,495 | | | | 92,533 | |
Tonnes per day
| | | 1,241 | | | | 1,243 | |
Grade (grams per tonne)
| | | 0.97 | | | | 1.01 | |
Recovery (%)
| | | 86.1 | | | | 84.9 | |
Gold Ounces Produced
| | | 2,813 | | | | 2,540 | |
Gold Ounces Sold
| | | 3,491 | | | | 3,119 | |
Operations Overview for the Three Months Ended March 31, 2022
Anaconda sold 3,491 ounces of gold during the first quarter of 2022, generating gold revenue of $8.0 million at an average realized gold price1 of $2,296 (US$1,813) per ounce sold. Gold production of 2,813 ounces was an 11% increase compared to Q1 2021, however lower than planned due to water management challenges in the Argyle Pit which required mill throughput to be maintained with low-grade Pine Cove stockpiles.
During Q1 2022, the mine operations moved 68,877 tonnes of ore, however mine production was impeded in March due to a water treatment issue whereby the quantity of water combined with the presence of elevated ammonia levels prevented further mine production. Corrective action was immediately taken with UV water treatment plants mobilized, which demonstrated an instant improvement in water quality based on independent lab testing. While waste mine development continued to be a focus to enable access to the core of the mineral resource, the delayed ore production resulted a higher than plan strip ratio of 11.4 waste tonnes to ore tonnes. The water quality is now compliant, and the Company has begun discharging water from the pit sump, which should allow for a return to continuous operations this week.
The Pine Cove Mill processed 104,495 tonnes during Q1 2022, an increase of 13% compared to the first quarter of 2021 when the Company experienced unplanned maintenance relating to the ball mill and the jaw crusher. The mill however fell short of plan in the most recent quarter due to fluctuating temperatures during the period which impacted material handling due to frozen stockpiles and wet ore also created issues with screening, slowing crushing rates. The average grade milled in Q1 2022 was 0.97 g/t as 27% of mill throughput was from lower grade stockpiles. The mill though was able to achieve an average recovery rate of 86.1%, an increase over the comparative period, despite the lower grade profile compared to Q1 2021.
1 Refer to Non-IFRS Measures Section below.
Qualified Person
Kevin Bullock, P. Eng., President and CEO, Anaconda Mining Inc., is a "qualified person" as such term is defined in National Instrument 43-101 and has reviewed and approved the technical information and data included in this press release.
ABOUT ANACONDA
Anaconda Mining is a TSX and OTCQX-listed gold mining, development, and exploration company, focused in the top-tier Canadian mining jurisdictions of Newfoundland and Nova Scotia. The Company is advancing the Goldboro Gold Project in Nova Scotia, a significant growth project subject to a positive Feasibility Study with Probable Mineral Reserves of 1.15 million ounces of gold (15.80 million tonnes at 2.26 g/t gold), Measured and Indicated Mineral Resources inclusive of Mineral Reserves of 2.58 million ounces (21.6 million tonnes at 3.72 g/t gold) and additional Inferred Mineral Resources of 0.48 million ounces (3.18 million tonnes at 4.73 g/t gold) (Please see the ‘NI43-101 Technical Report and Feasibility Study for the Goldboro Gold Project, Eastern Goldfields District, Nova Scotia' on January 11, 2022 for further details). Anaconda also operates mining and milling operations in the prolific Baie Verte Mining District of Newfoundland which includes the fully permitted Pine Cove Mill, tailings facility and deep-water port, as well as ~15,000 hectares of highly prospective mineral property, including those adjacent to the past producing, high-grade Nugget Pond Mine at its Tilt Cove Gold Project.
NON-IFRS MEASURES
Anaconda has included certain non-IFRS performance measures as detailed below. In the gold mining industry, these are common performance measures but may not be comparable to similar measures presented by other issuers. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company's performance and ability to generate cash flow. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
Average Realized Gold Price per Ounce Sold - In the gold mining industry, average realized gold price per ounce sold is a common performance measure that does not have any standardized meaning. The most directly comparable measure prepared in accordance with IFRS is gold revenue. The measure is intended to assist readers in evaluating the revenue received in a period from each ounce of gold sold.
Average realized gold price per ounce sold is reconciled to the preliminary, unaudited condensed interim consolidated statement of comprehensive income as follows:
| |
Three months ended
March 31, 2022
| | |
Three months ended
March 31, 2021
| |
| |
| | |
| |
Gold revenue ($)
| | | 8,105,374 | | | | 7,353,288 | |
Gold ounces sold
| | | 3,491 | | | | 3,119 | |
Average realized gold price per ounce sold ($)
| | | 2,296 | | | | 2,358 | |
Average US Dollar exchange rate during period
| | | 0.7898 | | | | 0.7443 | |
Average realized gold price per ounce sold (US$)
| | | 1,813 | | | | 1,862 | |
Working Capital - Working capital is a common measure of near-term liquidity and is calculated by deducting current liabilities from current assets.
Working capital is reconciled to the preliminary, unaudited condensed interim consolidated statement of financial position as follows:
| | March 31, 2022 | | | December 31, 2021 | |
| |
| | |
| |
Current assets
| | | 9,721,259 | | | | 17,843,194 | |
Current liabilities
| | | 16,174,259 | | | | 16,446,081 | |
Working capital (deficit)
| | | (6,453,228 | ) | | | 1,397,113 | |
For further details about non-IFRS measures, please refer to the section "Non-IFRS Measures" in the Company's Management's Discussion and Analysis for the year ended December 31, 2021, which is available on the Company's website and on SEDAR at www.sedar.com.
accesswire.com
May 2, 2022 5:00 PM
Anaconda Mining Announces Q1 2022 Financial Results
TORONTO, ON / ACCESSWIRE / May 2, 2022 / Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX:ANX) (OTCQX:ANXGF) is pleased to report its financial and operating results for the three months ended March 31, 2022 ("Q1 2022"). The consolidated financial statements and management discussion & analysis documents can be found at www.sedar.com and the Company's website, www.anacondamining.com. All dollar amounts are in Canadian dollars unless otherwise noted.
Beginning in March 2022, mine production was impeded due to a water treatment issue whereby the quantity of water combined with the presence of elevated ammonia levels prevented further mine production. Corrective action was immediately taken with UV water treatment plants mobilized and the water quality is now compliant. The Company has begun discharging water from the pit sump and the settlement pond, with production drilling and ore haulage expected by the end of the week.
Highlights for the Period Ended March 31, 2022
Anaconda sold 3,491 ounces of gold in Q1 2022, generating metal revenue of $8.0 million at an average realized gold price1 of $2,296 (US$1,813) per ounce sold.Point Rousse produced 2,813 ounces of gold in Q1 2022, an 11% increase compared to Q1 2021, however lower than planned due to a water management issue in the Argyle Pit which required mill throughput to be maintained with low-grade Pine Cove stockpiles.Point Rousse EBITDA1 was a loss of $833,951 in Q1 2022, reflecting the impact of the water management issue on the operation's ability to maintain mine production at Argyle.Operating cash costs per ounce sold1 at the Point Rousse Project in Q1 2022 were $2,532 (US$1,999), reflecting the lower grade profile of mill throughput. The operating cash costs per ounce sold1 for the remainder of the year (Q2 through Q4) are expected to be between $1,000 and $1,100 (US$800 - US$880). Operating cash costs per ounce sold1 for the full year are now expected to be between $1,225 and $1,325 per ounce of gold sold (US$980 - US$1,060) (based on an exchange rate of 0.80).All-in sustaining cash costs per ounce sold1, including corporate administration and sustaining capital expenditures, was $3,678 (US$2,905) for Q1 2022.Net loss for the three months ended March 31, 2022 was $3,549,624, or $0.02 per share, compared to $2,496,850, or $0.02 per share, for the three months ended March 31, 2021, driven predominantly by higher depreciation than the comparative period.The Company invested $3.0 million in its exploration and development projects in the first quarter of 2022, including $1.9 million on the Goldboro Gold Project in Nova Scotia relating to the completion of the Feasibility Study and the progression of the environmental assessment process.As of March 31, 2022, the Company had a cash balance of $3.6 million and an undrawn revolving credit facility of $3.0 million. The Company also had a working capital deficit1 at the end of the quarter of $6.5 million, which includes $3.3 million in deferred revenue associated with a gold prepayment facility with Auramet International LLC which will be delivered into over the next six months. The deficit also reflects the short-term impact of the cessation of mining due to the water management issue.Subsequent to period end, the Company and Auramet International LLC mutually agreed to defer the April 2022 monthly delivery of 253 ounces associated with the gold prepayment facility to May 16, 2022.1 Refer to Non-IFRS Measures Section below. Non-IFRS financial measures are not standardized financial measures under the financial reporting framework used to prepare the financial statements and may not be comparable to similar financial measures disclosed by other issuers.
"The first quarter of 2022 was a challenging one at Point Rousse, as elevated ammonia levels in the Argyle pit in early March prevented continuing mining operations. This required mill throughput to be maintained with low-grade Pine Cove stockpiles, which resulted in lower revenue and lower earnings than planned. The Company is happy to advise that is discharging water from the pit sump and the settlement pond, with production drilling and ore haulage expected by the end of the week. This deferral of expected revenue has resulted in a working capital deficiency, and we are working on options to provide near-term liquidity while Point Rousse gets back to normal operations. We are now projecting to be at the lower end of our guidance range of 21,500 to 23,000 ounces of gold and operating cash costs per ounce sold1 for the full year are now expected to be between $1,225 and $1,325 per ounce of gold sold (US$980 - US$1,060)."
~Kevin Bullock, President and CEO, Anaconda Mining Inc.
Consolidated Results Summary
| | | | | | |
Financial Results
| | Three months ended March 31, 2022 | | | Three months ended March 31, 2021 | |
Revenue ($)
| | | 8,020,303 | | | | 7,359,908 | |
Cost of operations, including depletion and depreciation ($)
| | | 10,073,595 | | | | 8,661,537 | |
Mine operating loss ($)
| | | (2,053,292 | ) | | | (1,301,629 | ) |
Net loss ($)
| | | (3,549,624 | ) | | | (2,496,850 | ) |
Net loss ($/share) - basic and diluted
| | | (0.02 | ) | | | (0.02 | ) |
Cash generated from operating activities ($)
| | | (1,114,375 | ) | | | 536,039 | |
Capital investment in property, mill and equipment ($)
| | | 1,897,487 | | | | 786,169 | |
Capital investment in exploration and evaluation assets ($)
| | | 3,000,256 | | | | 2,826,542 | |
Average realized gold price per ounce*
| | US$1,813 | | | US$1,862 | |
Operating cash costs per ounce sold*
| | US$1,999 | | | US$2,052 | |
All-in sustaining cash costs per ounce sold*
| | US$2,905 | | | US$2,724 | |
| | March 31, 2022 | | | December 31, 2021 | |
Working capital (deficit)* ($)
| | | (6,526,714 | ) | | | 1,397,113 | |
Total assets ($)
| | | 92,298,013 | | | | 95,551,004 | |
Non-current liabilities ($)
| | | 8,331,304 | | | | 8,235,993 | | | | | | | | | | |
*Refer to Non-IFRS Measures section below.
| | | | | | |
Operational Results
| | Three months ended March 31, 2022 | | | Three months ended March 31, 2021 | |
Ore mined (t)
| | | 68,877 | | | | 59,157 | |
Waste mined (t)
| | | 786,515 | | | | 551,706 | |
Strip ratio
| | | 11.4 | | | | 9.3 | |
Ore milled (t)
| | | 104,495 | | | | 92,533 | |
Grade (g/t Au)
| | | 0.97 | | | | 1.01 | |
Recovery (%)
| | | 86.1 | | | | 84.9 | |
Gold ounces produced
| | | 2,813 | | | | 2,540 | |
Gold ounces sold
| | | 3,491 | | | | 3,119 | | | | | | | | | | |
Review of the Three Months Ended March 31, 2022
Operational Overview
Gold production of 2,813 ounces was an 11% increase compared to Q1 2021, however lower than planned due to a water management issue in the Argyle Pit which required mill throughput to be maintained with low-grade Pine Cove stockpiles. The mine operations moved 68,877 tonnes of ore but were impeded due to a water treatment issue in early March whereby the quantity of water combined with the presence of elevated ammonia levels prevented water discharge and hence, ongoing mine production. Corrective action was immediately taken with UV water treatment plants mobilized, which demonstrated an instant improvement in water quality based on independent lab testing. While waste mine development continued to be a focus to enable access to the core of the mineral resource, the delayed ore production resulted in a higher than plan strip ratio of 11.4 waste tonnes to ore tonnes. The water quality is now compliant and Point Rousse is restarting mining activity at Argyle by the end of the week.
The Pine Cove Mill processed 104,495 tonnes during Q1 2022, an increase of 13% compared to the first quarter of 2021 when the Company experienced unplanned maintenance relating to the ball mill and the jaw crusher. The mill however fell short of plan in the most recent quarter due to fluctuating temperatures during the period which impacted material handling due to frozen stockpiles, and wet ore also created issues with screening, slowing crushing rates. The average grade milled in Q1 2022 was 0.97 g/t as 27% of mill throughput was from lower grade stockpiles. The mill was able to achieve an average recovery rate of 86.1%, an increase over the comparative period, despite the lower grade profile compared to Q1 2021.
Financial Results
Anaconda sold 3,491 ounces of gold during the first quarter of 2022 to generate metal revenue of $8.0 million at an average realized gold price* of C$2,296 (US$1,813) per ounce, representing a 9% increase in metal revenue compared to Q1 2021 due to higher gold production.
Operating expenses for the three months ended March 31, 2022 were $8,697,915 compared to $7,920,122 in the three months ended March 31, 2021. Operating expenses for the most recent quarter included a $1,547,000 write-down to net realizable value of gold-in-circuit and gold dore, reflecting the high operating cash costs per ounce sold* due to the low-grade ore processed during the quarter. Operating expenses for Q1 2022 included mining costs of $3,514,136 which were 14% higher than the comparative period, primarily due to the 16% increase in ore production. Processing costs of $3,168,063 in Q1 2022 were relatively consistent with the comparative period. Operating cash costs per ounce sold* in the first three months of fiscal 2022 were C$2,532 (US$1,999), which were impacted by the lower grade profile as well as lower than planned throughput. Operating cash costs per ounce sold* for the full year are now expected to be between $1,225 and $1,325 per ounce of gold sold (US$980 - US$1,060 at an approximate exchange rate of 0.80), up from $1,150 and $1,250 per ounce of gold sold, reflecting the impact of operating cash costs per ounce sold* in Q1 2022. The operating cash costs per ounce sold* for the remainder of the year (Q2 through Q4) are expected to be between $1,000 and $1,100 (US$800 - US$880 at an approximate exchange rate of 0.80).
The royalty expense for Q1 2022 was $144,971 compared to $187,494 in Q1 2021, reflecting the 3% net smelter return royalty that applies to Argyle. Depletion and depreciation for the three months ended March 31, 2022 was $1,230,709, a significant increase from $553,921 in Q1 2021 reflecting comparatively higher production in Q1 2022, as well as the impact of the capitalized development of Argyle throughout 2021.
Mine operating loss for the three months ended March 31, 2022 was $2,053,292, compared to $1,301,629 in the corresponding period of 2021, with the higher depletion and depreciation driving the increase.
Corporate administration costs were $1,258,909 in the first quarter of 2022 compared to $951,088 in Q1 2021, reflecting salary adjustments from a third-party review undertaken in 2021 and increased legal costs relating to, among other matters, the name change and the finalization of the Goldboro Gold Project feasibility study.
Finance expense for the quarter was $114,320 for Q1 2022, compared to $44,098 for the three months ended March 31, 2021. Finance costs were more than the comparative 2021 period as a result of the finance charges related to the gold prepayment agreement.
In Q1 2022, the Company recorded a recovery of $179,718 as a deferred premium on flow-through shares, representing the proportion of the remaining qualifying exploration expenditures that were spent from the May 2021 flow-through financing in the three months ended March 31, 2022.
Net comprehensive loss for the three months ended March 31, 2022, was $3,549,624, or $0.02 per share, compared to $2,496,850, or $0.02 per share, for the three months ended March 31, 2021. The decline compared to the comparative period of 2021 was the result of higher depletion and depreciation and the impact of operating issues in the first quarter of 2022.
* Refer to Non-IFRS Measures Section below.
Financial Position and Cash Flow Analysis
As of March 31, 2022, the Company had a working capital deficit* of $6,526,714, which included cash and cash equivalents of $3,580,730. The working capital deficit* includes $3,330,400 in unearned revenue associated with a gold prepayment facility which will be delivered into over the next six months and is also the result of an increase in trade and other payables due to the higher operating costs and exploration activity in Q1 2022 in addition to the short-term impact of the cessation of mining due to the water management issue. Subsequent to period end, the Company and Auramet International LLC mutually agreed to defer the April 2022 monthly delivery of 253 ounces associated with the gold prepayment facility to May 16, 2022.
The current portion of loans includes $127,504 outstanding from a $5,000,000 term loan with RBC (the "Facility"). The Company made the final payment under the Facility subsequent to quarter-end.
Anaconda used $1,114,375 in operating cash flows during the three months ended March 31, 2022, after accounting for corporate administration costs of $1,258,909. The Point Rousse Project generated negative EBITDA* of $833,951, based on gold sales of 3,491 ounces at an average gold price of C$2,296 per ounce sold* and operating cash costs of C$2,532 per ounce sold*. Operating cash flows were also impacted by changes in working capital, namely the increase in accounts payable and a decrease in gold-in-circuit and stockpiled inventory.
The Company continued to invest in its key growth projects in Nova Scotia and Newfoundland in Q1 2022, spending $3,000,256 on exploration and evaluation assets (adjusted for amounts included in trade payables and accruals as of March 31, 2022), with $1,936,698 relating to the continued advancement of the Goldboro Gold Project. The Company also invested $1,897,487 into the property, mill and equipment at the Point Rousse operation, with capital investment focused on development activity at Argyle during Q1 2022.
Financing activities during Q1 2022 included $114,588 from the exercise of stock options, and the ongoing repayment of the RBC term loan and other loans and lease obligations.
* Refer to Non-IFRS Measures Section below.
Non-IFRS Measures
Anaconda has included in this press release certain non-IFRS performance measures as detailed below. In the gold mining industry, these are common performance measures but may not be comparable to similar measures presented by other issuers. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company's performance and ability to generate cash flow. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
Operating Cash Costs per Ounce of Gold - Anaconda calculates operating cash costs per ounce by dividing operating expenses per the consolidated statement of operations, net of silver sales by-product revenue, by the gold ounces sold during the applicable period. Operating expenses include mine site operating costs such as mining, processing and administration as well as royalties, however, excludes depletion and depreciation and rehabilitation costs.
All-In Sustaining Costs per Ounce of Gold - Anaconda has adopted an all-in sustaining cost performance measure that reflects all of the expenditures that are required to produce an ounce of gold from current operations. While there is no standardized meaning of the measure across the industry, the Company's definition conforms to the all-in sustaining cost definition as set out by the World Gold Council in its guidance dated June 27, 2013. The World Gold Council is a non-regulatory, non-profit organization established in 1987 whose members include global senior mining companies. The Company believes that this measure will be useful to external users in assessing operating performance and the ability to generate free cash flow from current operations.
The Company defines all-in sustaining costs as the sum of operating cash costs (per above), sustaining capital (capital required to maintain current operations at existing levels), corporate administration costs, sustaining exploration, and rehabilitation accretion and amortization related to current operations. All-in sustaining costs excludes capital expenditures for significant improvements at existing operations deemed to be expansionary in nature, exploration and evaluation related to growth projects, financing costs, debt repayments, and taxes. Canadian and US dollars are noted for realized gold price, operating cash costs per ounce of gold and all-in sustaining costs per ounce of gold. Both currencies are considered relevant and the Company uses the average foreign exchange rate for the period.
The operating cash costs per ounce and all-in sustaining costs per ounce are reconciled to the condensed interim consolidated statement of comprehensive loss as follows:
| | | | | | |
| |
Three months ended
March 31, 2022
| | | Three months ended March 31, 2021 | |
Operating expenses per the consolidated statement of comprehensive loss, including royalties
| | | 8,842,886 | | | | 8,107,616 | |
By-product silver sales credit
| | | (4,929 | ) | | | (6,620 | ) |
Operating cash costs ($)
| | | 8,837,957 | | | | 8,100,996 | |
Sustaining expenditures - property, mill and equipment
| | | 1,897,487 | | | | 786,169 | |
Sustaining expenditures - exploration and evaluation
| | | 682,742 | | | | 762,408 | |
Corporate administration costs
| | | 1,258,909 | | | | 951,088 | |
Share-based compensation
| | | 142,092 | | | | 153,649 | |
Rehabilitation - accretion and amortization (operating)
| | | 19,758 | | | | 2,350 | |
All-in sustaining cash costs ("AISC") ($)
| | | 12,838,945 | | | | 10,756,660 | |
Gold ounces sold
| | | 3,491 | | | | 3,119 | |
Operating cash costs per ounce sold ($ / ounce)
| | | 2,532 | | | | 2,597 | |
AISC per ounce sold ($ / ounce)
| | | 3,678 | | | | 3,449 | |
Average US Dollar exchange rate during period
| | | 0.7898 | | | | 0.7899 | |
Operating cash costs per ounce sold (US$ / ounce)
| | | 1,999 | | | | 2,052 | |
AISC per ounce sold (US$ / ounce)
| | | 2,905 | | | | 2,724 | | | | | | | | | | |
Average Realized Gold Price per Ounce Sold - In the gold mining industry, average realized gold price per ounce sold is a common performance measure that does not have any standardized meaning. The most directly comparable measure prepared in accordance with IFRS is gold revenue. The measure is intended to assist readers in evaluating the revenue received in a period from each ounce of gold sold.
Average realized gold price per ounce sold is reconciled to the condensed interim consolidated statements of comprehensive loss as follows:
| | | | | | |
| |
Three months ended
March 31, 2022
| | | Three months ended March 31, 2021 | |
| |
| | |
| |
Gold revenue ($)
| | | 8,015,374 | | | | 7,353,288 | |
Gold ounces sold
| | | 3,491 | | | | 3,119 | |
Average realized gold price per ounce sold ($)
| | | 2,296 | | | | 2,358 | |
Average US Dollar exchange rate during period
| | | 0.7898 | | | | 0.7899 | |
Average realized gold price per ounce sold (US$)
| | | 1,813 | | | | 1,862 | | | | | | | | | | |
Earnings before Interest, Taxes, Depreciation and Amortization ("EBITDA") - EBITDA is earnings before transaction costs, finance expense, current and deferred income tax expense and depletion and depreciation.
Point Rousse Project EBITDA is EBITDA before corporate administration, share-based compensation, deferred premium on flow-through shares, and all other expenses and other income.
The EBITDA and Point Rousse Project EBITDA amounts are reconciled to the condensed interim consolidated statements of comprehensive loss as follows:
| | | | | | |
| |
Three months ended
March 31, 2022
| | | Three months ended March 31, 2021 | |
Net loss, per the consolidated statement of comprehensive loss
| | | (3,549,624 | ) | | | (2,496,850 | ) |
Adjustments:
| | | | | | | | |
Finance expense
| | | 114,320 | | | | 44,098 | |
Current income tax expense
| | | - | | | | 30,345 | |
Deferred income tax expense (recovery)
| | | 311,000 | | | | (49,000 | ) |
Depletion and depreciation
| | | 1,226,511 | | | | 553,921 | |
EBITDA ($)
| | | (1,893,595 | ) | | | (1,917,486 | ) |
Corporate administration
| | | 1,258,909 | | | | 951,088 | |
Gain on revaluation of investments
| | | (326,973 | ) | | | - | |
Share of loss from equity accounted investments
| | | 36,643 | | | | 196,518 | |
Stock-based compensation
| | | 142,092 | | | | 153,649 | |
Deferred premium on flow-through shares
| | | (179,718 | ) | | | (142,062 | ) |
Other expenses (income)
| | | 128,691 | | | | (8,571 | ) |
Point Rousse Project EBITDA ($)
| | | (833,951 | ) | | | (766,864 | ) | | | | | | | | | |
Working Capital - Working capital is a common measure of near-term liquidity and is calculated by deducting current liabilities from current assets.
| | | | | | |
| | March 31, 2022 | | | December 31, 2021 | |
Cash and cash equivalents
| | | 3,580,730 | | | | 10,121,724 | |
Inventory
| | | 4,434,652 | | | | 5,641,435 | |
Other current assets
| | | 1,719,877 | | | | 2,080,035 | |
Current assets ($)
| | | 9,735,259 | | | | 17,843,194
| |
Trade and other payables
| | | 11,818,413 | | | | 9,528,294 | |
Current portion of loans
| | | 785,810 | | | | 1,363,383 | |
Unearned revenue
| | | 3,330,400 | | | | 5,000,000 | |
Other current liabilities
| | | 327,350 | | | | 554,404 | |
Current liabilities ($)
| | | 16,261,973 | | | | 16,446,081 | |
Working capital (deficit) ($)
| | | (6,526,714 | ) | | | 1,397,113 | | | | | | | | | | |
ABOUT ANACONDA
Anaconda Mining is a TSX and OTCQX-listed gold mining, development, and exploration company, focused in the top-tier Canadian mining jurisdictions of Newfoundland and Nova Scotia. The Company is advancing the Goldboro Gold Project in Nova Scotia, a significant growth project subject to a positive Feasibility Study with Probable Mineral Reserves of 1.15 million ounces of gold (15.80 million tonnes at 2.26 g/t gold), Measured and Indicated Mineral Resources inclusive of Mineral Reserves of 2.58 million ounces (21.6 million tonnes at 3.72 g/t gold) and additional Inferred Mineral Resources of 0.48 million ounces (3.18 million tonnes at 4.73 g/t gold) (Please see the ‘NI43-101 Technical Report and Feasibility Study for the Goldboro Gold Project, Eastern Goldfields District, Nova Scotia' on January 11, 2022 for further details). Anaconda also operates mining and milling operations in the prolific Baie Verte Mining District of Newfoundland which includes the fully permitted Pine Cove Mill, tailings facility and deep-water port, as well as ~15,000 hectares of highly prospective mineral property, including those adjacent to the past producing, high-grade Nugget Pond Mine at its Tilt Cove Gold Project.
Kevin Bullock, P. Eng., President and Chief Executive Officer of Anaconda Mining Inc. is a "qualified person" as such term is defined under National Instrument 43-101 - Standards of Disclosure for Mineral Projects and has reviewed and approved the scientific and technical information and data included in this press release.
accesswire.com
May 5, 2022 5:30 PM
Anaconda Mining Inc. Announces US$8.0 Million Loan Facility With Auramet International LLC
TORONTO, ON / ACCESSWIRE / May 5, 2022 / Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX:ANX) (OTCQX:ANXGF) is pleased to announce that it has entered into a promissory note ("Promissory Note") with Auramet International LLC (the "Auramet" or the "Lender") in connection with a senior secured loan whereby the Lender has provided the Company with a US$8 million loan facility (the "Loan"). The net proceeds will be used for the repayment of the existing gold prepayment facility with Auramet and for general working capital purposes as the Company ramps back up to normal mining operations at its Point Rousse operation.
Pursuant to the Promissory Note, the Loan is due on the first anniversary of the Promissory Note, or May 5, 2023, and the Company may repay the Loan, in minimum incremental amounts of US1,000,000, either in whole or in part, from time to time without penalty, subject to any accrued interest. The Loan is subject to an original issue discount fee of 2.5%, which was deducted from the advance of the Loan. Interest accrues on the unpaid principal amount at the rate of 8% per annum plus the greater of (i) 90 Day US$ SOFR (Secured Overnight Financing Rate), and (ii) 1.00% per annum payable quarterly in arrears.
The Loan is secured by, among other matters, a guarantee of the Company's wholly-owned subsidiary Orex Exploration Inc. (the "Guarantor"), a general security agreement over all present and after-acquired property of the Guarantor, and a pledge by the Company of 100% of the outstanding shares of the Guarantor.
ABOUT AURAMET INTERNATIONAL LLC
Auramet is one of the largest physical precious metals merchants in the world with over $22 billion in annual revenues and provides a full range of services to all participants in the precious metals chain, from extraction and production to manufacturing and consumption including physical metals trading and merchant banking, working capital lending, plus royalties and streams.
May 12, 2022 5:30 PM
Signal Gold (Formerly Anaconda Mining) Announces Results from Annual and Special Meeting of Shareholders
TORONTO, ON / ACCESSWIRE / May 12, 2022 / Signal Gold Inc., previously Anaconda Mining Inc., ("Signal Gold" or the "Company") (TSX:ANX) (OTCQX:ANXGF) is pleased to announce that it has changed its name to Signal Gold effective today, immediately following the approval of the related resolution by shareholders at the annual and special meeting. The Company expects that it will commence trading on the Toronto Stock Exchange under its new name on or about May 17, 2022, with the new stock symbol "SGNL". Furthermore, all other resolutions proposed to shareholders at the annual and special meeting held today were duly passed.
All the nominees listed in the management information circular for the meeting were elected as directors of the Company. Detailed results of the vote for the election of directors are set out below.
Nominee
| Votes For
| % For
| Votes Withheld
| % Withheld
| Mary-Lynn Oke
| 33,711,104
| 93.781%
| 2,235,688
| 6.219%
| Rick Howes
| 33,546,489
| 93.323%
| 2,400,303
| 6.677%
| Lewis Lawrick
| 32,818,971
| 91.299%
| 3,127,825
| 8.701%
| P.E. (Ted) Kavanagh
| 33,516,711
| 93.240%
| 2,430,081
| 6.760%
| Kevin Bullock
| 33,744,075
| 93.872%
| 2,202,833
| 6.128%
|
In addition, PricewaterhouseCoopers LLP was reappointed as the Company's auditors for the ensuing year and the directors were authorized to fix their remuneration.
June 2, 2022 4:35 PM
Signal Gold Announces Upsize to Previously Announced Private Placement for up to $6.0 Million
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES
TORONTO, ON / ACCESSWIRE / June 2, 2022 / Signal Gold Inc. ("Signal Gold" or the "Company") (TSX:SGNL)(OTCQX:SGNLF) is pleased to announce that it has upsized its previously announced non-brokered private placement to now raise gross proceeds of up to $6,000,000 (the "Offering"). The Offering will now consist of up to 3,652,774 "flow-through" units of the Company (the "FT Units") at a price of $0.56 per FT Unit, and up to 8,070,298 units of the Company (the "Units") at a price of $0.49 per Unit. Each FT Unit will consist of one common share to be issued as a "flow-through share" as defined in subsection 66 (15) of the Income Tax Act (Canada) and one-half of one common share purchase warrant to be issued on a non-flow-through basis (each whole common share purchase warrant, a "Warrant"). Each Unit will consist of one common share and one-half of one Warrant. Each Warrant will entitle the holder thereof to purchase one common share of the Company (a "Warrant Share") at a price of $0.74 for a period of 36 months following the closing date of the Offering. The Warrants will contain an acceleration clause whereby, after the expiration of the statutory hold period, if the common shares of the Company trade at a volume weighted average price of $1.24 or more for 10 consecutive trading days, the Company will have the right to accelerate the exercise period to a period ending at least 30 days from the date that notice of such acceleration is provided to the holders of the Warrants.
It is expected that the gross proceeds from the Offering will be primarily used to advance activities for development and exploration at the Goldboro Gold Project in Nova Scotia and for working capital and general corporate purposes.
Any securities to be issued under the Offering will be subject to a hold period of four months and a day from the closing date of the Offering in accordance with the rules and policies of the Toronto Stock Exchange ("TSX"), and applicable Canadian securities laws and such other further restrictions as may apply under foreign securities laws. The Offering remains subject to the approval of the TSX.
It is anticipated that insiders of the Company may participate in the Offering. By virtue of their participation, the Offering would constitute a "related party transaction" under applicable securities laws. The Company expects to release a material change report including details with respect to the related party transaction less than 21 days prior to the closing of the Offering, which the Company deems reasonable in the circumstances so as to be able to avail itself of potential financing opportunities and complete the Offering in an expeditious manner. As the related party transaction will not exceed specified limits and will constitute a distribution of securities for cash, it is expected that neither a formal valuation nor minority shareholder approval will be required in connection with the Offering.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.
June 6, 2022 10:30 AM
Signal Gold Announces Filing of Environmental Assessment Registration Document for the Goldboro Gold Project
TORONTO, ON / ACCESSWIRE / June 6, 2022 / Signal Gold Inc. ("Signal Gold" or the "Company"; (TSX:SGNL)(OTCQX:SGNLF) is pleased to announce that an Environmental Assessment Registration Document ("EARD") for the Goldboro Gold Project ("Goldboro", or the "Project") was submitted on June 3, 2022, to the Nova Scotia Department of Environment and Climate Change. The 100%-owned Goldboro Gold Project is subject to regulation under the Nova Scotia Environmental Act, Part IV, for a Class 1 Environmental Assessment. The EARD was commissioned by the Company to identify and address potential environmental effects resulting from the Project by investigating and documenting baseline conditions since 2017 and using a science-based approach to model and predict the potential effects. Critically, the Project is predicted to not likely cause significant adverse environmental effects on all identified and assessed valued components with the implementation of appropriate mitigation measures.
"We are pleased to file the Environmental Assessment Registration Document for the Goldboro Gold Project, the culmination of five years of environmental baseline monitoring and analysis and the commencement of the permitting process. We recognize that a mining project is a temporary use of land, and we are confident that the EA reflects the extraordinary efforts taken by Signal Gold to develop a project that mitigates environmental impact at every phase, including construction, operations, reclamation and closure. Where environmental impacts are not avoidable, the Company is committed to working with Mi'kmaq, community members, regulators, and other stakeholders to collaborate on opportunities to enhance, restore or create habitat that is similar to the habitats being impacted. We look forward to the Environmental Assessment Process as the next step to developing Nova Scotia's next gold mine, the largest private sector development project in the Province."
~Kevin Bullock, President & CEO, Signal Gold Inc.
The EA was authored by Signal Gold and GHD of Halifax, Nova Scotia, with support from McCallum Environmental Inc., Lorax Environmental, and Knight Piesold, and utilizes extensive environmental baseline data collected and analyzed since 2017. Furthermore, the Project and proposed development plan are supported by the technical report and Feasibility Study dated January 11, 2022 and titled "NI 43-101 Technical Report and Feasibility Study for the Goldboro Gold Project, Eastern Goldfields District, Nova Scotia", which is available on SEDAR at www.sedar.com and on the Company's website at www.signalgold.com.
By using the EA process as a planning tool and drawing on the extensive experience of senior management and the Project consultants, the Company has developed and assessed several iterations of the Project to reduce the potential impact to the environment. For example, the design of the two open pits, instead of a single larger open pit, ensures no direct disturbance to both Gold Brook Lake and Gold Brook. Other Project infrastructure has been micro-sited where possible to avoid watercourses, wetlands, species at risk, areas of historic mine tailings, and historic or cultural archaeological resources. It also incorporates the results of a Mi'Kmaq Ecological Knowledge Study (MEKS) completed by Membertou Geomatics. Throughout the compilation of the EA, Signal Gold has endeavored to work with the local community, Indigenous groups, non-governmental organizations, regulatory agencies, and interested members of the public, to inform the proposed development plan for the Project.
The Project aligns with the goals outlined in the NS Department of Natural Resources and Renewables (NSDNRR) Natural Resources Strategy for Nova Scotia, including to "support the sustainable development of the Province's geological resources in order to attract investment, create high-value jobs, and grow the economy". All phases of the Project will provide direct and indirect employment opportunities, as well as taxation revenue for municipal, provincial, and federal governments, and changes to provincial gross domestic product ("GDP"). An independent socioeconomic impact study was completed for the Project which outlined the following benefits:
Over 15 years, Signal Gold will spend approximately $1.7 billion on goods and services, mostly in the Province of Nova Scotia, resulting in a potential $2.1 billion contribution to provincial GDP.Total household income in Nova Scotia could potentially increase by nearly $1.1 billion.Over the life cycle of the Project, including construction, operations and closure, the Project has the potential to create 735 new direct and spin-off jobs a year in the Province for 15 years.On or around June 10, 2022, the Project will be registered under Part IV of the Environment Act as a Class 1 undertaking, which commences a 30-day public comment period and Crown Consultation with Mi'kmaq of Nova Scotia. The comment period will end on July 10, 2022, at which point the Minister is expected to provide further guidance with respect to the Project.
accesswire.com
June 7, 2022 7:00 AM
Signal Gold Appoints Project Director for the Goldboro Gold Project and Enhances Its Technical Advisory Board
TORONTO, ON / ACCESSWIRE / June 7, 2022 / Signal Gold Inc. ("Signal Gold" or the "Company") (TSX:SGNL)(OTCQX:SGNLF) is pleased to announce the appointment of Brian Jackson to the role of Project Director for the Goldboro Gold Project ("Goldboro" or the "Project") starting July 4, 2022. In this role, Mr. Jackson will be accountable for leading the planning and implementation of all aspects of the development of Goldboro, including permitting and related studies, detailed engineering, procurement, construction, management (EPCM) and eventually commissioning of the Project.
"We are pleased to welcome Brian to the Signal Gold team, a highly respected industry leader who will provide the leadership, expertise and direction to advance the Goldboro Gold Project towards development and eventually commercial production. Brian's experience and skills will be especially critical as we move towards detailed engineering and further studies and assessments to support the development of the Project."
~Kevin Bullock, President & CEO, Signal Gold Inc.
Mr. Jackson is a respected and experienced industry leader who most recently held project director roles including Project Director for both the Selection Phase Study and Definition Phase Study for BHP's Jansen Project and as EPCM Project Director for Iamgold's Côté Project during the Execution phase. Brian has worked in EPCM focused roles with various companies, including AECOM, Proctor & Redfern, Bantrel (a Bechtel-owned company), Kvaerner, SNC-Lavalin and Wood and in the last 15 years has been focused on corporate and project management. Brian is a graduate from the University of Western Ontario with a Bachelor of Engineering Science (Mech.) in 1987 and is licensed as a Professional Engineer in the Province of Ontario.
The Company is also pleased to announce the appointment of Glen Kuntz, P. Geo., to its Technical Advisory Committee.
"We are also pleased to have Glen join our technical advisory board and a team of industry leaders with strong technical expertise which the Company can draw on as it advances the Goldboro Gold Project. Glen was critical as the leader of the Feasibility Study for Goldboro in the Project's transformation into a high-grade, long life gold development project."
~Kevin Bullock, President & CEO, Signal Gold Inc.
Glen is the Chief Technical and Innovation Officer of Ivanhoe Electric Inc. a minerals exploration and development company focused on electric metals (copper, gold, silver, nickel). Prior to joining Ivanhoe Electric Glen was a consulting specialist with Nordmin Engineering Ltd., where he led the Feasibility Study for the Goldboro Gold Project. Glen has managed over 200 technical studies on various projects and mines around the world over the past 10 years. Glen is a Professional Geologist and mining executive with over 30 years of global mining experience in exploration, project development, open pit and underground mining operations and business development across a variety of commodities and mining types/methods. Glen is registered as a professional geologist in various Canadian jurisdictions.
accesswire.com
June 10, 2022 8:30 AM
Signal Gold Completes $6 Million Private Placement
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES
TORONTO, ON / ACCESSWIRE / June 10, 2022 / Signal Gold Inc. ("Signal Gold" or the "Company") (TSX:SGNL)(OTCQX:SGNLF) is pleased to announce that it has completed the private placement announced on May 18, 2022 and later upsized on June 2, 2022 (the "Offering"). Pursuant to the Offering, the Company issued 3,652,375 flow-through units of the Company (the "FT Units") at a price of $0.56 per FT Unit, and 8,070,298 units of the Company (the "Units") at a price of $0.49 per Unit. Each FT Unit consisted of one common share issued as a "flow-through share" as defined in subsection 66 (15) of the Income Tax Act (Canada) and one-half of one common share purchase warrant issued on a non-flow-through basis (each whole common share purchase warrant, a "Warrant"). Each Unit consisted of one common share and one-half of one Warrant. Each Warrant entitles the holder thereof to purchase one common share of the Company (a "Warrant Share") at a price of $0.74 until June 9, 2025. The Warrants contain an acceleration clause whereby, after the expiration of the statutory hold period, if the common shares of the Company trade at a volume weighted average price of $1.24 or more for 10 consecutive trading days, the Company will have the right to accelerate the exercise period to a period ending at least 30 days from the date that notice of such acceleration is provided to the holders of the Warrants.
"Despite a very challenging market for the industry, we were pleased to see significant institutional interest for the Company's private placement financing even beyond the upsized amount, demonstrating the strong interest in Signal Gold's continued growth potential. With the financing now completed, the Company is well positioned to further enhance the value of its assets going forward, especially at our Goldboro Gold Project."
~Kevin Bullock, President and CEO, Signal Gold Inc.
The gross proceeds from the Offering will be used primarily to advance activities for development and exploration at the Goldboro Gold Project in Nova Scotia and for working capital and general corporate purposes.
Each of the Units and FT Units issued under the Offering is subject to a hold period under Canadian law that will expire on October 10, 2022. The Offering remains subject to final approval of the Toronto Stock Exchange.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities to be offered have not been and will not be registered under the United States Securities Act of 1933, as amended, U.S. Securities Act or under any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons, absent registration, or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.
accesswire.com |
