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Brio Gold Reports Second Quarter 2017 Financial Results
TORONTO, ON--(Marketwired - August 01, 2017) - BRIO GOLD INC. (BRIO.TO) ("BRIO GOLD" or the "Company") announces its second quarter 2017 financial and operating results. All dollar figures are in U.S. dollars unless otherwise indicated.
Q2 2017 Financial and Operating Highlights
Production of 44,223 ounces of gold.
Total cost of sales of $1,139 per gold ounce sold.
Cash costs(1) of $859 per ounce of gold produced.
All-in sustaining costs (AISC)(1) of $1,085 per gold ounce produced.
Revenues of $52.9 million, on the sale of 42,691 ounces of gold.
Mine operating earnings of $4.2 million.
Net loss of $7.4 million, or $0.07 per share.
Adjusted net loss(1) of $3.6 million, or $0.03 per share.
Cash flow from operating activities before changes in working capital of $4.3 million.
(1) A non-GAAP financial measure. For a reconciliation of non-GAAP financial measures, please see the end of this press release.
Q2 2017 Summary Financial Results
For the three months | For the six months | |||||||||
In thousands of U.S. Dollars | 2017 | 2016 | 2017 | 2016 | ||||||
Revenues from mining operations | $ | 52,853 | $ | 65,154 | $ | 112,352 | $ | 112,287 | ||
Mine operating earnings | 4,207 | 10,889 | 10,023 | 24,755 | ||||||
Net (loss)/earnings | (7,385 | ) | 10,315 | (4,994 | ) | 20,790 | ||||
Adjusted (loss)/earnings(1) | (3,559 | ) | 2,315 | (1,077 | ) | 3,549 | ||||
Adjusted EBITDA(1) | 6,491 | 19,069 | 19,005 | 36,861 | ||||||
Cash flow from operating activities before changes in working capital | 4,273 | 18,682 | 19,736 | 34,942 | ||||||
(1) | A non-GAAP financial measure. For a reconciliation of non-GAAP measures, please see the end of this press release. |
Revenues from mining operations were $52.9 million in the second quarter of 2017 on the sale of 42,691 ounces of gold compared to $65.2 million on the sale of 52,351 ounces of gold for the comparable period in 2016. For the first half of 2017, revenues from mining operations were $112.4 million on the sale of 92,306 ounces of gold compared to $112.3 million on the sale of 93,595 ounces of gold for the comparable period in 2016.
Mine operating earnings totaled $4.2 million for the second quarter of 2017 compared to $10.9 million for the same period in 2016. For the first half of 2017, mine operating earnings were $10.0 million compared to $24.8 million for the same period of 2016. Overall the decrease in mine operating earnings is due to lower gold ounces sold, largely a result of lower grade mined during the period, reduced production from the RDM mine and exchange rate differences.
Net loss in the second quarter of 2017 was $7.4 million or $0.07 per share, a decrease compared to net earnings of $10.3 million or $0.44 per share for the first quarter of 2016. For the first half of 2017, net loss was $5.0 million or $0.04 per share compared to net earnings of $20.8 million or $0.88 per share for the same period in 2016. Overall net earnings were lower due to the changes in mine operating earnings discussed above, and higher income tax expense as a result of non-cash effect on unrealized foreign exchange which is excluded for the calculation of adjusted earnings.
The adjusted loss in the second quarter of 2017 was $3.6 million, or $0.03 per share, compared to an adjusted income of $2.3 million, or $0.10 in the same period of 2016. For the first half of the year, the adjusted loss was $1.1 million, or $0.01 per share, compared to an adjusted income of $3.5 million, or $0.15 per share, in the same period of 2016.
The adjusted EBITDA in the second quarter of 2017 was $6.5 million compared to $19.1 million in the same period of 2016. For the first half of the year, the adjusted EBITDA was $19.0 million compared to $36.9 million in the same period of 2016.
Cash flow from operating activities after changes in working capital for the second quarter of 2017 was an outflow of $2.2 million, compared to an inflow of $16.1 million in the same period of 2016. The Company received an advance payment for $4.4 million in the first quarter of 2017, relating to gold sales delivered in the second quarter for $4.4 million, a transaction that was done in order to manage working capital. Cash flow from operating activities before changes in working capital of $4.3 million in the second quarter of 2017, compared to $18.7 million in the same period of 2016.
Q2 2017 Summary Operational Results
For the three months ended June 30, | For the six months ended June 30, | |||||||||||
2017 | 2016 | Change | 2017 | 2016 | Change | |||||||
Gold production (oz)(1) | 44,223 | 52,737 | (16%) | 94,763 | 93,109 | 2% | ||||||
Gold sales (oz)(1) | 42,691 | 52,351 | (18%) | 92,306 | 93,595 | (1)% | ||||||
Total cost of sales per gold ounce sold(1) | $1,139 | $1,037 | 10% | $1,109 | $936 | 18% | ||||||
Cash cost per gold ounce produced(1,2) | $859 | $726 | 18% | $842 | $667 | 26% | ||||||
Consolidated AISC per gold ounce produced(1,2) | $1,085 | $969 | 12% | $1,070 | $889 | 20% | ||||||
Notes: | |
(1) | Operating statistics only include RDM from the date that it was acquired on April 29, 2016. |
(2) | A non-GAAP financial measure. For a reconciliation of non-GAAP measures see the end of this press release. |
Production during the second quarter of 2017 was 44,223 ounces of gold, compared to 52,737 ounces in the same period of 2016. The RDM mine was put on care and maintenance for 41 days during the quarter, as necessary adjustments were completed to meet the revised production plan. At Fazenda Brasileiro, scheduled mill liner replacements impacted production, however planned production at Fazenda Brasileiro for the year is back end weighted, with grade improvements expected in the second half of the year. For the first half of the year, production was 94,763 ounces of gold, compared to 93,109 ounces in the same period of 2016.
Cost of sales including depletion, depreciation and amortization per ounce of gold sold was $1,139 in the second quarter of 2017, compared to $1,037 in the same period of 2016. Cash cost per gold ounce during the second quarter was $859, compared to $726 in the same period of 2016. All-in sustaining cost per ounce of gold produced was $1,085 in the second quarter of 2017, compared to $969 in the same period of 2016.
For the first half of the year, cost of sales including depletion, depreciation and amortization per ounce of gold sold was $1,109 in the first half of 2017, compared to $936 in the same period of 2016. Cash cost per gold ounce was $842 for the first half of 2017, compared to $667 in the same period of 2016. All-in sustaining cost per ounce of gold produced was $1,070 in the first half of 2017, compared to $889 in the same period of 2016.
Overall, the increase in per ounce costs was due to a strengthening of the Brazilian Real against the US Dollar. Including the impact of the foreign exchange hedges, approximately 28% of the total increase in All-in sustaining costs per ounce is due to the strengthening of the Brazilian real against the US dollar when comparing the second quarter of 2017 to 2016, and approximately 41% when comparing the first half of 2017 to 2016. In addition, lower grades impacted production and hence per ounce costs, as a significant portion of operating costs are fixed. Higher corporate G&A from one-time costs associated with the transition to operating as an independent public company also impacted costs. Despite the increase from the comparable periods in 2016, All-in sustaining costs for the year 2017 are expected to achieve the 2017 guidance of $995-$1,015 per ounce.
Breakdown by Mine
For the three months | For the six months | ||||||||||||
Gold production (oz) | 2017 | 2016 | Change | 2017 | 2016 | Change | |||||||
Pilar | 20,287 | 22,806 | (11)% | 40,771 | 44,654 | (9)% | |||||||
Fazenda Brasileiro | 14,092 | 16,873 | (16)% | 28,964 | 35,397 | (18)% | |||||||
RDM(1) | 9,844 | 13,058 | (25)% | 25,028 | 13,058 | 92% | |||||||
Total Production | 44,223 | 52,737 | (16)% | 94,763 | 93,109 | 2% | |||||||
Total Cost of Sales ($ per oz sold) | |||||||||||||
Pilar | $1,144 | $1,023 | 12% | $1,083 | $962 | 13% | |||||||
Fazenda Brasileiro | $1,145 | $1,008 | 14% | $1,167 | $856 | 36% | |||||||
RDM(1) | $1,125 | $1,079 | 4% | $1,088 | $1,079 | 1% | |||||||
Total Cost of Sales per gold oz sold | $1,139 | $1,037 | 10% | $1,109 | $936 | 18% | |||||||
Cash Costs ($ per oz produced) | |||||||||||||
Pilar | $831 | $679 | 22% | $809 | $656 | 23% | |||||||
Fazenda Brasileiro | $892 | $726 | 23% | $841 | $627 | 34% | |||||||
RDM(1) | $869 | $807 | 8% | $927 | $807 | 15% | |||||||
Total Cash Costs | $859 | $726 | 18% | $842 | $667 | 26% | |||||||
AISC ($ per oz produced) | |||||||||||||
Pilar | $1,022 | $856 | 19% | $1,011 | $801 | 26% | |||||||
Fazenda Brasileiro | $956 | $988 | (3)% | $999 | $808 | 24% | |||||||
RDM(1) | $872 | $883 | (1)% | $953 | $882 | 8% | |||||||
Total Mine AISC ($ per oz produced) | $968 | $916 | 6% | $992 | $821 | 21% | |||||||
Total Consolidated AISC ($ per oz produced) | $1,085 | $969 | 12% | $1,070 | $889 | 20% | |||||||
Notes: | |
(1) | Operating statistics only include RDM from the date that it was acquired on April 29, 2016. |
Pilar
Production at the Pilar Mine in the second quarter of 2017 was 20,287 ounces of gold in line with plan, but lower compared to 22,806 ounces in the same period of 2016. For the first half of the year, production was 40,771 ounces of gold compared to 44,654 in the same period of 2016. Overall the decrease in production is due to gold feed grades as a result of mine sequencing, partially offset by higher throughput and recovery. The Company maintains its production guidance for 2017 of 83,000 to 88,000 ounces of gold.
Cost of sales including depletion, depreciation and amortization was $1,144 per ounce, compared to a cost of sales including depletion, depreciation and amortization of $1,023 per ounce of gold sold in the same period of 2016. For the first half of 2017, cost of sales including depletion, depreciation and amortization was $1,083 compared to $962 in the same period of 2016. Cash costs were $831 per ounce of gold produced in the second quarter of 2017, compared to $679 per ounce of gold produced in the same quarter of 2016. For the first half of 2017, cash costs were $809 per ounce of gold produced, compared to $656 in the same period of 2016. All-in sustaining costs were $1,022 per ounce of gold produced in the second quarter of 2017, compared to $856 per ounce of gold produced in the same quarter of 2016. For the first half of 2017, All-in sustaining costs were $1,011 per ounce of gold produced, compared to $801 in the same period of 2016. Overall costs were higher mainly due to the strengthening of the Brazilian Real against the US dollar, and lower grades.
Fazenda Brasileiro
Production in the second quarter of 2017 was 14,092 ounces of gold, compared to 16,873 ounces in the same period of 2016. For the first half of 2017, production was 28,964 ounces of gold, compared to 35,397 in the same period of 2016. Overall, production was impacted by lower grades and mill liner replacement, partially offset by improved recovery. During the second quarter of 2017, ball mill one was down for two days and ball mill two was down for four days for liner replacement.
Planned production at Fazenda Brasileiro for the year is back end weighted and the mine is forecast to achieve annual guidance of 65,000 to 70,000 ounces.
Cost of sales including depletion, depreciation and amortization was $1,145 per ounce, compared to a cost of sales including depletion, depreciation and amortization of $1,008 per ounce of gold sold in the same period of 2016. For the first half of 2017, cost of sales including depletion, depreciation and amortization was $1,167 compared to $856 in the same period of 2016. Cash costs were $892 per ounce of gold produced in the second quarter of 2017, compared to $726 per ounce of gold produced in the same quarter of 2016. For the first half of 2017, cash costs were $841 per ounce of gold produced, compared to $627 per ounce in the same period of 2016. All-in sustaining costs for the second quarter of 2017 was $956, a decrease from $988 in the same period of 2016. For the first half of 2017, All-in sustaining costs were $999 per ounce of gold produced, compared to $808 in the same period of 2016.
Grade, as discussed above, was the main contributor to higher costs on a per ounce basis, since a large portion of operating costs are fixed. Expansionary capital increased in the second quarter of 2017 compared to the same period of 2016 as the Company focuses on developing the Canto deposit, which is expected to extend the mine life.
RDM
Production in the second quarter of 2017 was 9,844 ounces of gold, compared to 13,058 ounces in the same period of 2016. For the first half of 2017, production was 25,028 ounces of gold, compared to 13,058 in the same period of 2016. During the quarter, the mine was put on care and maintenance for 41 days, as the operations were re-organized to meet the new production plan that was announced last quarter. During this period, water was conserved while the existing small-scale mining contractor was demobilized and the Company reduced the operations manpower to conform with the revised life of mine plan. The newly built water dam and water pipeline was also successfully tested and made operational during this period. Operations were restarted under the new operating plan with the Company's currently owned larger scale equipment fleet mining ore.
The Company has completed its analysis regarding the stripping equipment fleet at the RDM mine and has selected a large-scale mining contractor to perform the stripping work at the mine. The Company does not anticipate any change to life of mine production plans or 2017 cost guidance. Brio Gold expects cash costs and AISC to increase by 4% and 6%, respectively, when compared to the previously announced average life of mine costs. As a result of choosing this option, the Company is eliminating the forecasted $43.9 million capital expenditure that it announced in its revised RDM forecast last quarter. Notably, this decision is slightly value accretive to RDM and removes the need for any upfront capital.
The Company maintains its revised production 2017 guidance at RDM of 50,000 to 65,000 ounces. This guidance range includes the expectation that the processing plant at RDM will be down for a total of three months in 2017 as a result of the unusual drought conditions experienced earlier this year after the completion of the construction of the water storage facility near the end of the rainy season. Continuous operations at RDM is expected for the life of mine commencing in the fourth quarter of this year.
Cost of sales including depletion, depreciation and amortization was $1,125, compared to a cost of sales including depletion, depreciation and amortization of $1,079 per ounce of gold sold in the same period of 2016. For the first half of 2017, cost of sales including depletion, depreciation and amortization was $1,088 compared to $1,079 in the same period of 2016. Cash costs were $869 per ounce of gold produced in the second quarter of 2017, compared to $807 per ounce of gold produced in the same quarter of 2016. For the first half of 2017, cash costs were $927 per ounce of gold produced, compared to $807 in the same period of 2016. All-in sustaining costs were $872 per ounce of gold produced in the second quarter of 2017, compared to $883 per ounce of gold produced in the same quarter of 2016. For the first half of 2017, All-in sustaining costs were $953 per ounce of gold produced, compared to $883 in the same period of 2016. Costs were impacted by lower grades due to mine sequencing, partially offset by improved recoveries as a result of plant optimization initiatives.
Development Update
Santa Luz
The Santa Luz mine is in the execution phase and the Company continues to advance the project toward its re-start planned for the second quarter of 2018. Capital expenditures for the project are forecast to remain below budget. Basic engineering was completed in May and detailed construction engineering started in June. The company has purchased major long lead items for the project and procurement is moving forward. The tailings liner contractor has been mobilized to site and the new tailing pond liners have been delivered. Village relocation construction was initiated in the quarter with completion expected next quarter.
The Company has been continuously running the pilot plant and testing ore samples of all lithological types at the mine since completion of the technical report in July last year. The results of this test work confirm the average gold recovery published last year. Consistent recovery results for both carbonaceous, dacitic and blended ores have been verified with a standard resin-in-leach circuit with a very high level of confidence.
In the first half of 2017, Brio Gold completed a 4,200 metre drill program that focused on detailing and expanding a northwest trending zone of high-grade gold mineralization in the northeastern portion of the main C1 open pit orebody as well as infill drilling in both the C1 and Antas 3 orebodies. The positive drill results are expected to be incorporated into an updated mineral reserve and resource estimate in August of 2017.
RDM
Planning and permitting for the power line and substations to connect RDM to the power grid continued on schedule during the quarter. Construction of the powerline is expected to commence at the beginning of the third quarter of 2017 and the Company is targeting to commission the new grid connected power line in Q2 2018. The powerline will replace the current lower capacity diesel power generators, which is expected to reduce costs, improve grind/recovery and expand mill throughput. The connection to low cost grid power will complete the plant expansion to an operating capacity of 9,000 tonnes per day from 7,000 tonnes per day.
Second Quarter 2017 Financial Results and Conference Call
Brio Gold will release its second quarter 2017 financial results after market close on August 1, 2017 followed by a conference call and webcast on August 2, 2017 at 10:00 a.m. ET.
Second Quarter 2017 Conference Call:
Toll Free (North America): 1-844-543-5236
International: 1-703-318-2218
Webcast: www.briogoldinc.com
Conference Call REPLAY:
Toll Free (North America): 1-855-859-2056
Toronto Local and International: 1-404-537-3406
Conference ID: 53274183
The conference call replay will be available from 1:00 p.m. ET on August 2, 2017 until 1:00 p.m. ET on August 9, 2017.
About Brio Gold
Brio Gold is a new Canadian mining company with significant gold producing, development and exploration stage properties in Brazil. Brio Gold's portfolio includes three operating gold mines and a fully-permitted, fully-constructed mine that was on care and maintenance and currently is in development to be re-started in 2018. Brio Gold produced approximately 190,000 ounces of gold in 2016 and at full run-rate expects annual production to be approximately 400,000 ounces of gold.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This news release contains or incorporates by reference "forward-looking statements" and "forward-looking information" under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to information with respect to the Company's strategy, plans or future financial or operating performance, the outcome of the legal matters involving the damages assessments and any related enforcement proceedings. Forward-looking statements are characterized by words such as "plan," "expect", "budget", "target", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the Company's expectations in connection with the production and exploration, development and expansion plans at the Company's projects discussed herein being met, the impact of proposed optimizations at the Company's projects, the impact of the proposed new mining law in Brazil, and the impact of general business and economic conditions, global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future conditions, fluctuating metal prices (such as gold and silver), currency exchange rates (such as the Brazilian real versus the United States dollar), the impact of inflation, possible variations in ore grade or recovery rates, changes in the Company's hedging program, changes in accounting policies, changes in mineral resources and mineral reserves, risks related to asset disposition, risks related to metal purchase agreements, risks related to acquisitions, changes in project parameters as plans continue to be refined, changes in project development, construction, production and commissioning time frames, unanticipated costs and expenses, higher prices for fuel, steel, power, labour and other consumables contributing to higher costs and general risks of the mining industry, failure of plant, equipment or processes to operate as anticipated, unexpected changes in mine life, final pricing for concentrate sales, unanticipated results of future studies, seasonality and unanticipated weather changes, costs and timing of the development of new deposits, success of exploration activities, permitting timelines, government regulation and the risk of government expropriation or nationalization of mining operations, risks related to relying on local advisors and consultants in foreign jurisdictions, environmental risks, unanticipated reclamation expenses, risks relating to joint venture operations, title disputes or claims, limitations on insurance coverage and timing and possible outcome of pending and outstanding litigation and labour disputes, risks related to enforcing legal rights in foreign jurisdictions, as well as those risk factors discussed or referred to herein. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates, assumptions or opinions should change, except as required by applicable law. The reader is cautioned not to place undue reliance on forward-looking statements. The forward-looking information contained herein is presented for the purpose of assisting investors in understanding the Company's expected financial and operational performance and results as at and for the periods ended on the dates presented in the Company's plans and objectives and may not be appropriate for other purposes.
Non-GAAP Financial Measures
The Company has included certain non-GAAP financial measures including cash costs per ounce of gold produced, all-in sustaining costs per ounce of gold produced, adjusted earnings (loss), and adjusted EBITDA to supplement its consolidated financial statements, which are presented in accordance with IFRS.
The Company believes that these measures, together with measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. Non-GAAP financial measures do not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar measures employed by other companies. The data 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.
Cash Costs
The Company uses the non-GAAP financial measure "cash costs" on a per ounce of gold produced basis because it believes this measure provides investors and analysts with useful information about the Company's underlying cash costs of operations and is a relevant metric used to understand the Company's operating profitability, and ability to generate cash flow. Cash costs figures are calculated based on the standard developed by The Gold Institute, which was a worldwide association of suppliers of gold and gold products and included leading North American gold producers. The Gold Institute ceased operations in 2002, but the standard remains the generally accepted standard of reporting cash costs of production in North America. Adoption of the standard is voluntary and the cost measures presented herein may not be comparable to other similarly titled measures of other companies.
Cash costs include mine site operating costs such as mining, processing, administration, production taxes and royalties, which are not based on sales or taxable income calculations, but are exclusive of amortization, reclamation, capital, development, and exploration costs. Cash costs per ounce of gold produced are calculated on a weighted average basis.
The term "cash costs" has no standard meaning and therefore, the Company's definitions are unlikely to be comparable to similar measures presented by other companies and should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS and is not necessarily indicative of operating costs, operating profit or cash flows presented under IFRS.
All-in Sustaining Costs
The Company uses the non-GAAP financial measure "all-in sustaining costs", also referred to as "AISC", on a per ounce of gold produced basis because it believes this measure provides investors with useful information about the Company's underlying cash costs of operations, after deducting certain non-discretionary items such as sustaining capital expenditures, exploration expenses and certain general and administrative costs and is a relevant metric used to understand the Company's ability to generate cash flow. All-in sustaining costs are based on cash costs, including cost components of mine sustaining capital expenditures and exploration and evaluation expense. All-in sustaining costs for a mine do not include capital expenditures attributable to projects or mine expansions, exploration and evaluation costs attributable to growth projects, Brio Gold corporate general and administrative expenses, Yamana general and administrative expenses allocated to Brio Gold or stock-based compensation, income tax payments, financing costs and dividend payments. Consequently, this measure is not representative of all of the Company's cash expenditures. In addition, the calculation of all-in sustaining costs does not include depletion, depreciation and amortization expense as it does not reflect the impact of expenditures incurred in prior periods. The term "all-in sustaining costs" has no standard meaning and therefore, the Company's definitions are unlikely to be comparable to similar measures presented by other companies and should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS and is not necessarily indicative of operating costs, operating profit or cash flows presented under IFRS.
Reconciliation of cost of sales including depletion, depreciation and amortization to cash costs and all-in sustaining costs, consolidated and per mine (Based on Condensed Consolidated Interim Financial Statements unless otherwise noted)
For the three months ended June 30, 2017 | ||||||||||||
(In thousands of U.S. dollars) | Consolidated | Pilar Mine | Fazenda | RDM Mine | ||||||||
Cost of sales including depletion, depreciation and amortization | 48,646 | 22,635 | 14,624 | 11,387 | ||||||||
Depletion, depreciation and amortization | (11,541 | ) | (6,213 | ) | (3,189 | ) | (2,139 | ) | ||||
Adjustments: | ||||||||||||
Inventory movement and adjustments(1) | 877 | 436 | 1,135 | (694 | ) | |||||||
Cash costs(2) | 37,982 | 16,858 | 12,570 | 8,554 | ||||||||
General and administrative expenses attributable to all-in sustaining costs | 6,458 | 142 | 22 | 6 | ||||||||
Stock based compensation | (2,002 | ) | - | - | - | |||||||
Sustaining capital expenditures | 5,436 | 3,743 | 878 | 24 | ||||||||
Exploration and evaluation expense | 149 | - | 2 | - | ||||||||
All-in sustaining costs(2) | 48,023 | 20,743 | 13,472 | 8,584 | ||||||||
Cost of sales including depletion, depreciation and amortization per gold ounce sold | 1,139 | 1,144 | 1,145 | 1,125 | ||||||||
Cash cost per gold ounce produced(2) | 859 | 831 | 892 | 869 | ||||||||
All-in sustaining costs per ounce produced(2) | 1,085 | 1,022 | 956 | 872 | ||||||||
Gold ounces produced during the period (oz.) | 44,223 | 20,287 | 14,092 | 9,844 | ||||||||
Gold ounces sold during the period (oz.) | 42,691 | 19,793 | 12,776 | 10,122 | ||||||||
For the three months ended June 30, 2016 | ||||||||||||
(In thousands of U.S. dollars) | Consolidated | Pilar Mine | Fazenda | RDM Mine | ||||||||
Cost of sales including depletion, depreciation and amortization | 54,265 | 22,554 | 17,784 | 13,659 | ||||||||
Depletion, depreciation and amortization | (15,752 | ) | (8,782 | ) | (5,484 | ) | (1,218 | ) | ||||
Adjustments: | ||||||||||||
Inventory movement and adjustments(1) | (226 | ) | 1,713 | (50 | ) | (1,903 | ) | |||||
Cash costs(2) | 38,287 | 15,485 | 12,250 | 10,538 | ||||||||
General and administrative expenses attributable to all-in sustaining costs | 5,665 | 452 | 71 | 4 | ||||||||
Stock based compensation | (1,742 | ) | - | - | - | |||||||
Sustaining capital expenditures | 8,862 | 3,516 | 4,350 | 988 | ||||||||
Exploration and evaluation expense | 30 | - | - | - | ||||||||
All-in sustaining costs(2) | 51,102 | 19,453 | 16,671 | 11,530 | ||||||||
Cost of sales including depletion, depreciation and amortization per gold ounce sold | 1,037 | 1,023 | 1,008 | 1,079 | ||||||||
Cash cost per gold ounce produced(2) | 726 | 679 | 726 | 807 | ||||||||
All-in sustaining costs per ounce produced(2) | 969 | 856 | 988 | 883 | ||||||||
Gold ounces produced during the period (oz.) | 52,737 | 22,806 | 16,873 | 13,058 | ||||||||
Gold ounces sold during the period (oz.) | 52,351 | 22,047 | 17,650 | 12,654 | ||||||||
For the six months ended June 30, 2017 | ||||||||||||
(In thousands of U.S. dollars) | Consolidated | Pilar Mine | Fazenda | RDM Mine | ||||||||
Cost of sales including depletion, depreciation and amortization | 102,329 | 43,587 | 31,076 | 27,666 | ||||||||
Depletion, depreciation and amortization | (24,906 | ) | (11,282 | ) | (9,780 | ) | (3,844 | ) | ||||
Adjustments: | ||||||||||||
Inventory movement and adjustments(1) | 3,121 | 679 | 3,063 | (621 | ) | |||||||
Cash costs(2) | 80,544 | 32,984 | 24,359 | 23,201 | ||||||||
General and administrative expenses attributable to all-in sustaining costs | 11,548 | 716 | 498 | 328 | ||||||||
Stock based compensation | (3,744 | ) | - | - | - | |||||||
Sustaining capital expenditures | 12,831 | 7,513 | 3,968 | 325 | ||||||||
Exploration and evaluation expense | 239 | - | - | - | ||||||||
All-in sustaining costs(2) | 101,418 | 41,213 | 28,825 | 23,854 | ||||||||
Cost of sales including depletion, depreciation and amortization per gold ounce sold | 1,109 | 1,083 | 1,167 | 1,088 | ||||||||
Cash cost per gold ounce produced(2) | 842 | 809 | 841 | 927 | ||||||||
All-in sustaining costs per ounce produced(2) | 1,070 | 1,011 | 999 | 953 | ||||||||
Gold ounces produced during the period (oz.) | 94,763 | 40,771 | 28,964 | 25,028 | ||||||||
Gold ounces sold during the period (oz.) | 92,306 | 40,258 | 26,625 | 25,423 | ||||||||
For the six months ended June 30, 2016 | ||||||||||||
(In thousands of U.S. dollars) | Consolidated | Pilar Mine | Fazenda | RDM Mine | ||||||||
Cost of sales including depletion, depreciation and amortization | 87,532 | 41,950 | 31,923 | 13,659 | ||||||||
Depletion, depreciation and amortization | (26,558 | ) | (16,310 | ) | (9,030 | ) | (1,218 | ) | ||||
Adjustments: | ||||||||||||
Inventory movement and adjustments(1) | 1,130 | 3,653 | (699 | ) | (1,903 | ) | ||||||
Cash costs(2) | 62,104 | 29,293 | 22,194 | 10,538 | ||||||||
General and administrative expenses attributable to all-in sustaining costs | 10,917 | 534 | 170 | 4 | ||||||||
Stock based compensation | (3,484 | ) | - | - | - | |||||||
Sustaining capital expenditures | 13,186 | 5,941 | 6,237 | 988 | ||||||||
Exploration and evaluation expense | 51 | - | - | - | ||||||||
All-in sustaining costs(2) | 82,774 | 35,768 | 28,601 | 11,530 | ||||||||
Cost of sales including depletion, depreciation and amortization per gold ounce sold | 936 | 962 | 856 | 1,079 | ||||||||
Cash cost per gold ounce produced(2) | 667 | 656 | 627 | 807 | ||||||||
All-in sustaining costs per ounce produced(2) | 889 | 801 | 808 | 883 | ||||||||
Gold ounces produced during the period (oz.) | 93,109 | 44,654 | 35,397 | 13,058 | ||||||||
Gold ounces sold during the period (oz.) | 93,595 | 43,633 | 37,308 | 12,654 | ||||||||
Notes: | |
(1) | Inventory movement and adjustment represent the difference between the costs of production (which are based on ounces produced) and the cost of sales (which is based on ounces sold). The timing difference between the units sold and the costs of those units requires an adjustment to reflect the nature of the underlying metric. |
(2) | A non-GAAP financial measure. |
Quarterly trailing cost of sales including depletion, depreciation and amortization to cash costs consolidated and per mine (Based on Condensed Consolidated Interim Financial Statements unless otherwise noted)
Brio Gold Consolidated | ||||||||||||
(In thousands of U.S. dollars) | Q2-17 | Q1-17 | Q4-16 | Q3-16 | ||||||||
Cost of sales including depletion, depreciation and amortization | 48,646 | 53,684 | 71,169 | 53,009 | ||||||||
Depletion, depreciation and amortization | (11,541 | ) | (13,366 | ) | (26,275 | ) | (13,936 | ) | ||||
Adjustments: | ||||||||||||
Inventory movement and adjustments(1) | 877 | 2,254 | (2,897 | ) | (1,614 | ) | ||||||
Cash costs(2) | 37,982 | 42,572 | 41,997 | 37,459 | ||||||||
Cost of sales including depletion, depreciation and amortization per gold ounce sold | 1,139 | 1,082 | 1,421 | 1,083 | ||||||||
Cash cost per gold ounce produced(2) | 859 | 842 | 832 | 813 | ||||||||
Gold ounces produced during the period (oz.) | 44,223 | 50,540 | 50,477 | 46,075 | ||||||||
Gold ounces sold during the period (oz.) | 42,691 | 49,615 | 50,092 | 48,837 | ||||||||
Brio Gold Consolidated | ||||||||||||
(In thousands of U.S. dollars) | Q2-16 | Q1-16 | Q4-15 | Q3-15 | ||||||||
Cost of sales including depletion, depreciation and amortization | 54,265 | 33,111 | 39,812 | 42,598 | ||||||||
Depletion, depreciation and amortization | (15,752 | ) | (10,855 | ) | (14,076 | ) | (16,752 | ) | ||||
Adjustments: | ||||||||||||
Inventory movement and adjustments(1) | (226 | ) | 1,382 | (1,850 | ) | (213 | ) | |||||
Cash costs(2) | 38,287 | 23,638 | 23,886 | 25,633 | ||||||||
Cost of sales including depletion, depreciation and amortization per gold ounce sold | 1,037 | 803 | 1,016 | 1,104 | ||||||||
Cash cost per gold ounce produced(2) | 726 | 590 | 610 | 667 | ||||||||
Gold ounces produced during the period (oz.) | 52,737 | 40,372 | 39,279 | 38,430 | ||||||||
Gold ounces sold during the period (oz.) | 52,351 | 41,243 | 39,194 | 38,600 | ||||||||
Pilar Mine | ||||||||||||
(In thousands of U.S. dollars) | Q2-17 | Q1-17 | Q4-16 | Q3-16 | ||||||||
Cost of sales including depletion, depreciation and amortization | 22,635 | 20,953 | 36,843 | 23,787 | ||||||||
Depletion, depreciation and amortization | (6,213 | ) | (5,070 | ) | (17,919 | ) | (9,295 | ) | ||||
Adjustments: | ||||||||||||
Inventory movement and adjustments(1) | 436 | 258 | 408 | 1,515 | ||||||||
Cash costs(2) | 16,858 | 16,141 | 19,332 | 16,007 | ||||||||
Cost of sales including depletion, depreciation and amortization per gold ounce sold | 1,144 | 1,024 | 1,687 | 1,152 | ||||||||
Cash cost per gold ounce produced(2) | 831 | 788 | 872 | 791 | ||||||||
Gold ounces produced during the period (oz.) | 20,287 | 20,484 | 22,170 | 20,237 | ||||||||
Gold ounces sold during the period (oz.) | 19,793 | 20,465 | 21,837 | 20,656 | ||||||||
Pilar Mine | ||||||||||||
(In thousands of U.S. dollars) | Q2-16 | Q1-16 | Q4-15 | Q3-15 | ||||||||
Cost of sales including depletion, depreciation and amortization | 22,554 | 19,726 | 19,237 | 23,000 | ||||||||
Depletion, depreciation and amortization | (8,782 | ) | (7,577 | ) | (5,682 | ) | (8,636 | ) | ||||
Adjustments: | ||||||||||||
Inventory movement and adjustments(1) | 1,713 | 1,626 | (374 | ) | (367 | ) | ||||||
Cash costs(2) | 15,485 | 13,775 | 13,181 | 13,997 | ||||||||
Cost of sales including depletion, depreciation and amortization per gold ounce sold | 1,023 | 914 | 851 | 1,069 | ||||||||
Cash cost per gold ounce produced(2) | 679 | 641 | 618 | 652 | ||||||||
Gold ounces produced during the period (oz.) | 22,806 | 21,848 | 21,326 | 21,468 | ||||||||
Gold ounces sold during the period (oz.) | 22,047 | 21,586 | 22,617 | 21,510 | ||||||||
Fazenda Brasileiro Mine | ||||||||||||
(In thousands of U.S. dollars) | Q2-17 | Q1-17 | Q4-16 | Q3-16 | ||||||||
Cost of sales including depletion, depreciation and amortization | 14,624 | 16,452 | 20,530 | 17,072 | ||||||||
Depletion, depreciation and amortization | (3,189 | ) | (6,591 | ) | (5,870 | ) | (3,792 | ) | ||||
Adjustments: | ||||||||||||
Inventory movement and adjustments(1) | 1,135 | 1,932 | (896 | ) | (355 | ) | ||||||
Cash costs(2) | 12,570 | 11,793 | 13,764 | 12,925 | ||||||||
Cost of sales including depletion, depreciation and amortization per gold ounce sold | 1,145 | 1,188 | 1,074 | 998 | ||||||||
Cash cost per gold ounce produced(2) | 892 | 793 | 753 | 751 | ||||||||
Gold ounces produced during the period (oz.) | 14,092 | 14,872 | 18,279 | 17,211 | ||||||||
Gold ounces sold during the period (oz.) | 12,776 | 13,849 | 19,110 | 17,100 | ||||||||
Fazenda Brasileiro Mine | ||||||||||||
(In thousands of U.S. dollars) | Q2-16 | Q1-16 | Q4-15 | Q3-15 | ||||||||
Cost of sales including depletion, depreciation and amortization | 17,784 | 14,368 | 20,054 | 19,598 | ||||||||
Depletion, depreciation and amortization | (5,484 | ) | (3,556 | ) | (8,394 | ) | (8,116 | ) | ||||
Adjustments: | ||||||||||||
Inventory movement and adjustments(1) | (50 | ) | (910 | ) | (914 | ) | 155 | |||||
Cash costs(2) | 12,250 | 9,902 | 10,746 | 11,637 | ||||||||
Cost of sales including depletion, depreciation and amortization per gold ounce sold | 1,008 | 731 | 1,210 | 1,147 | ||||||||
Cash cost per gold ounce produced(2) | 726 | 536 | 599 | 686 | ||||||||
Gold ounces produced during the period (oz.) | 16,873 | 18,524 | 17,953 | 16,963 | ||||||||
Gold ounces sold during the period (oz.) | 17,650 | 19,657 | 16,577 | 17,090 | ||||||||
RDM, Brazil | |||||||||||||||
(In thousands of U.S. dollars) | Q2-17 | Q1-17 | Q4-16 | Q3-16 | Q2-16 | ||||||||||
Cost of sales including depletion, depreciation and amortization | 11,387 | 16,278 | 13,660 | 12,150 | 13,080 | ||||||||||
Depletion, depreciation and amortization | (2,139 | ) | (1,705 | ) | (2,477 | ) | (849 | ) | (1,217 | ) | |||||
Adjustments: | |||||||||||||||
Inventory movement and adjustments(1) | (694 | ) | 64 | (2,278 | ) | (2,794 | ) | (1,334 | ) | ||||||
Cash costs(2) | 8,554 | 14,637 | 8,905 | 8,507 | 10,529 | ||||||||||
Cost of sales including depletion, depreciation and amortization per gold ounce sold | 1,125 | 1,064 | 1,494 | 1,096 | 1,079 | ||||||||||
Cash cost per gold ounce produced(2) | 869 | 964 | 888 | 986 | 807 | ||||||||||
Gold ounces produced during the period (oz.) | 9,844 | 15,184 | 10,028 | 8,628 | 13,058 | ||||||||||
Gold ounces sold during the period (oz.) | 10,122 | 15,301 | 9,146 | 11,081 | 12,654 | ||||||||||
Notes: | |
(1) | Inventory movement and adjustment represent the difference between the costs of production (which are based on ounces produced) and the cost of sales (which is based on ounces sold). The timing difference between the units sold and the costs of those units requires an adjustment to reflect the nature of the underlying metric. |
(2) | A non-GAAP financial measure. |
(3) | RDM was acquired during Q2, 2016, therefore Q3 2015 to Q1 2016 is not applicable |
Adjusted EBITDA
The Company uses the non-GAAP financial measure "Adjusted EBITDA" because it believes it provides investors with useful information to evaluate its performance and understand its ability to service and/or incur indebtedness.
The Company defines Adjusted EBITDA as net loss, before income tax recovery (expense), depletion, depreciation and amortization, impairment and reversals of mining properties, interest expense, share-based compensation, and non-recurring provisions and other adjustments.
The term "Adjusted EBITDA" has no standard meaning and therefore, the Company's definitions are unlikely to be comparable to similar measures presented by other companies and should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS and is not necessarily indicative of operating costs, operating profit or cash flows presented under IFRS.
Reconciliation of Net Loss to Adjusted EBITDA (Based on Condensed Consolidated Interim Financial Statements unless otherwise noted)
For the three months ended | For the six months ended | |||||||||||
(In thousands of U.S. dollars) | Q2 2017 | Q2 2016 | Q2 2017 | Q2 2016 | ||||||||
Net earnings | (7,385 | ) | 10,315 | (4,994 | ) | 20,790 | ||||||
Adjustments: | ||||||||||||
Income tax expense/(recoveries) | 2,843 | (14,432 | ) | (6,687 | ) | (22,122 | ) | |||||
Depletion, depreciation and amortization | 11,541 | 15,752 | 24,906 | 26,558 | ||||||||
Foreign exchange (gain)/loss | (1,252 | ) | 3,619 | 7 | 3,017 | |||||||
Bank, financing fees, interest expense and other | 1,606 | 449 | 2,624 | 737 | ||||||||
Provision/(recovery) on indirect tax credits | 1,908 | 1,624 | (1,123 | ) | 4,397 | |||||||
Stock based compensation | 2,002 | 1,742 | 3,744 | 3,484 | ||||||||
Unrealized (gain)/loss on foreign exchange hedges | (4,772 | ) | - | 528 | - | |||||||
Adjusted EBITDA | $ | 6,491 | $ | 19,069 | $ | 19,005 | $ | 36,861 | ||||
Adjusted Earnings or Loss
The Company uses the non-GAAP financial measure "Adjusted earnings or loss" because it believes this measure provides useful information to investors to evaluate the Company's performance by excluding certain cash and non-cash charges. The presentation of Adjusted earnings or loss is not meant to be a substitute for net earnings or loss or net earnings or loss per share presented in accordance with IFRS, but rather should be evaluated in conjunction with such IFRS measures. Adjusted earnings or loss is calculated as net earnings excluding (a) stock based compensation, (b) unrealized foreign exchange (gains) losses related to revaluation of deferred income tax asset and liability on non-monetary items, (c) unrealized foreign exchange (gains) losses related to other items, (d) impairment losses and reversals, (e) deferred income tax expense (recovery) on the translation of foreign currency inter corporate debt, (f) periodic tax adjustments to historical deferred income tax balances relating to changes in enacted tax rates and (g) non-cash provisions and any other non-recurring adjustments. Non-recurring adjustments from unusual events or circumstances are reviewed from time to time based on materiality and the nature of the event or circumstance. Earnings adjustments for the comparative period reflect continuing operations.
The terms "Adjusted earnings or loss" has no standardized meaning prescribed by IFRS and therefore the Company's definitions are unlikely to be comparable to similar measures presented by other companies.
For more information, see the Condensed Consolidated Interim Financial Statements and the related notes.
Reconciliation of Net Loss to Adjusted Earnings or Loss (Based on Condensed Consolidated Interim Financial Statements unless otherwise noted)
For the three months ended | For the six months ended | |||||||||||
(In thousands of U.S. dollars) | 2017 | 2016 | 2017 | 2016 | ||||||||
Net earnings | $ | (7,385 | ) | $ | 10,315 | $ | (4,994 | ) | $ | 20,790 | ||
Adjustments: | ||||||||||||
Foreign exchange loss/(gain) | (1,252 | ) | 3,619 | 7 | 3,017 | |||||||
Unrealized (gain)/loss on foreign exchange hedges | (4,772 | ) | - | 528 | - | |||||||
Provision/(recovery) on indirect tax credits | 1,908 | 1,624 | (1,123 | ) | 4,397 | |||||||
Business transaction costs | - | 1,613 | 848 | 3,823 | ||||||||
Stock based compensation | 2,002 | 1,742 | 3,744 | 3,484 | ||||||||
Non-cash tax effect on unrealized foreign exchange losses/(gains) | 6,074 | (15,487 | ) | (3,262 | ) | (29,281 | ) | |||||
Tax impact of adjustments | 1,202 | 330 | 3,093 | 809 | ||||||||
Other | (1,336 | ) | (1,441 | ) | 82 | (3,490 | ) | |||||
Adjusted (loss)/earnings | $ | (3,559 | ) | $ | 2,315 | $ | (1,077 | ) | $ | 3,549 | ||
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
For the three months ended | For the six months ended | ||||||||||||
(In thousands of United States Dollars), (unaudited) | 2017 | 2016 | 2017 | 2016 | |||||||||
Revenue from mining operations | $ | 52,853 | $ | 65,154 | $ | 112,352 | $ | 112,287 | |||||
Cost of sales excluding depletion, depreciation and amortization | (37,105 | ) | (38,513 | ) | (77,423 | ) | (60,974 | ) | |||||
Gross margin excluding depletion, depreciation and amortization | 15,748 | 26,641 | 34,929 | 51,313 | |||||||||
Depletion, depreciation and amortization | (11,541 | ) | (15,752 | ) | (24,906 | ) | (26,558 | ) | |||||
Mine operating earnings | 4,207 | 10,889 | 10,023 | 24,755 | |||||||||
Expenses | |||||||||||||
General and administrative | (6,458 | ) | (5,665 | ) | (11,548 | ) | (10,917 | ) | |||||
Other operating expense (Note 12) | (4,774 | ) | (4,525 | ) | (4,598 | ) | (10,263 | ) | |||||
Operating (loss)/earnings | (7,025 | ) | 699 | (6,123 | ) | 3,575 | |||||||
Foreign exchange gain/(loss) | 1,252 | (3,619 | ) | (7 | ) | (3,017 | ) | ||||||
Unrealized foreign exchange hedges gain/(loss) | 4,772 | - | (528 | ) | - | ||||||||
Finance expense (Note 13) | (3,541 | ) | (1,197 | ) | (5,023 | ) | (1,890 | ) | |||||
(Loss)/earnings before income taxes | (4,542 | ) | (4,117 | ) | (11,681 | ) | (1,332 | ) | |||||
Income tax (expense)/recoveries (Note 14) | (2,843 | ) | 14,432 | 6,687 | 22,122 | ||||||||
Net (loss)/earnings | (7,385 | ) | 10,315 | (4,994 | ) | 20,790 | |||||||
Other comprehensive (loss)/income | |||||||||||||
Items that may be reclassified subsequently to profit or loss: | |||||||||||||
Change in fair value of hedging instruments, net of tax (Note 16) | (12,136 | ) | - | 2,861 | - | ||||||||
Total comprehensive (loss)/income | $ | (19,521 | ) | $ | 10,315 | $ | (2,133 | ) | $ | 20,790 | |||
Net (loss)/earnings per share | |||||||||||||
Net (loss)/earnings per share (basic) (Note 15) | $ | (0.07 | ) | $ | 0.44 | $ | (0.04 | ) | $ | 0.88 | |||
Net (loss)/earnings per share (diluted) (Note 15) | $ | (0.07 | ) | $ | 0.41 | $ | (0.04 | ) | $ | 0.83 | |||
Weighted average number of shares outstanding (Note 15) | |||||||||||||
Basic | 112,527,429 | 23,500,000 | 112,527,429 | 23,500,000 | |||||||||
Diluted | 112,527,429 | 25,000,000 | 112,527,429 | 25,000,000 | |||||||||
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
For the three months ended | For the six months ended | ||||||||||||
(In thousands of United States Dollars), (unaudited) | 2017 | 2016 | 2017 | 2016 | |||||||||
Operating activities | |||||||||||||
Loss before income tax expense | $ | (4,542 | ) | $ | (4,117 | ) | $ | (11,681 | ) | $ | (1,332 | ) | |
Adjustments to reconcile loss before income taxes to operating cash flows: | |||||||||||||
Depletion, depreciation and amortization | 11,541 | 15,752 | 24,906 | 26,558 | |||||||||
Unrealized foreign exchange (gain)/loss | (1,252 | ) | 3,619 | 7 | 3,017 | ||||||||
Unrealized foreign exchange hedge (gain)/loss | (4,772 | ) | - | 528 | - | ||||||||
Finance expense | 3,541 | 1,197 | 5,023 | 1,890 | |||||||||
Other non-cash operating expenses (Note 17 b) | 4,719 | 3,506 | 1,982 | 7,877 | |||||||||
Amortization of deferred revenue on advance of metal sales | (4,425 | ) | - | (4,425 | ) | - | |||||||
Advance metal sales | - | - | 4,425 | - | |||||||||
Decommissioning, restoration and similar liabilities paid | (537 | ) | (567 | ) | (941 | ) | (652 | ) | |||||
Income taxes paid | - | (708 | ) | (88 | ) | (2,416 | ) | ||||||
Cash flows from operating activities before net change in working capital | $ | 4,273 | $ | 18,682 | $ | 19,736 | $ | 34,942 | |||||
Net change in working capital (Note 17 a) | (6,465 | ) | (2,571 | ) | (25,970 | ) | (10,080 | ) | |||||
Cash flows (used in) from operating activities | $ | (2,192 | ) | $ | 16,111 | $ | (6,234 | ) | $ | 24,862 | |||
Investing activities | |||||||||||||
Property, plant and equipment expenditures | (15,757 | ) | (15,419 | ) | (34,568 | ) | (24,126 | ) | |||||
Acquisition of Mineração Riacho dos Machados Ltda (Note 3) | - | (2,832 | ) | - | (50,225 | ) | |||||||
Cash flows used in investing activities | $ | (15,757 | ) | $ | (18,251 | ) | $ | (34,568 | ) | $ | (74,351 | ) | |
Financing activities | |||||||||||||
Proceeds from long-term debt (Note 11) | $ | 15,000 | $ | - | $ | 50,000 | $ | - | |||||
Related party financing | - | 3,632 | - | 51,361 | |||||||||
Interest and other finance expenses paid | (1,867 | ) | - | (3,943 | ) | - | |||||||
Cash flows from financing activities | $ | 13,133 | $ | 3,632 | $ | 46,057 | $ | 51,361 | |||||
Effect of foreign exchange on cash | (281 | ) | 380 | (757 | ) | 757 | |||||||
(Decrease)/Increase in cash | $ | (5,097 | ) | $ | 1,872 | $ | 4,498 | $ | 2,629 | ||||
Cash beginning of period | $ | 16,609 | $ | 4,723 | $ | 7,014 | $ | 3,966 | |||||
Cash end of period | $ | 11,512 | $ | 6,595 | $ | 11,512 | $ | 6,595 | |||||
CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS
(In thousands of United States Dollars) | As at June 30, 2017 (unaudited) | As at | ||||
Assets | ||||||
Current assets: | ||||||
Cash | $ | 11,512 | $ | 7,014 | ||
Trade and other receivables | 653 | 154 | ||||
Inventories (Note 5) | 36,136 | 29,620 | ||||
Derivative related assets (Note 7) | 4,716 | 1,328 | ||||
Income taxes recoverable | 1,499 | - | ||||
Other current assets (Note 6) | 12,894 | 12,777 | ||||
67,410 | 50,893 | |||||
Non-current assets: | ||||||
Property, plant and equipment (Note 8) | 483,132 | 481,746 | ||||
Deferred tax assets | 9,670 | 6,167 | ||||
Other non-current asset (Note 6) | 14,168 | 2,893 | ||||
Total assets | $ | 574,380 | $ | 541,699 | ||
Liabilities | ||||||
Current liabilities: | ||||||
Trade and other payables (Note 9) | $ | 38,538 | $ | 56,066 | ||
Income taxes payable | 5,820 | 2,998 | ||||
Other financial liabilities | 1,841 | 1,414 | ||||
Other provisions and liabilities (Note 10) | 3,533 | 5,243 | ||||
49,732 | 65,721 | |||||
Non-current liabilities: | ||||||
Long-term debt (Note 11) | 47,704 | - | ||||
Decommissioning, restoration and similar liabilities | 38,621 | 36,871 | ||||
Deferred income tax liabilities | 7,249 | 11,413 | ||||
Other non-current provisions and liabilities (Note 10) | 6,671 | 4,902 | ||||
Total liabilities | 149,977 | 118,907 | ||||
Equity | ||||||
Share capital | 427,858 | 427,858 | ||||
Reserves | 77,280 | 70,675 | ||||
Deficit | (80,735 | ) | (75,741 | ) | ||
Total equity | 424,403 | 422,792 | ||||
Total equity and liabilities | $ | 574,380 | $ | 541,699 | ||
