05:58:10 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Sabina Gold & Silver Corp
Symbol SBB
Shares Issued 219,950,902
Close 2016-08-10 C$ 1.19
Market Cap C$ 261,741,573
Recent Sedar Documents

Sabina Gold & Silver earns $200,000 in Q2 2016

2016-08-10 11:16 ET - News Release

Mr. Bruce McLeod reports

SABINA GOLD & SILVER ANNOUNCES Q2 2016 FINANCIAL RESULTS

Sabina Gold & Silver Corp. has released the financial results for the second quarter of 2016.

"Sabina ended the quarter with a strong balance sheet of approximately $43-million in cash and cash equivalents," said Bruce McLeod, Sabina's president and chief executive officer. "Since receiving the recommendation from the Nunavut Impact Review Board (NIRB) in mid-June, we have worked diligently to prepare our detailed response to the NIRB report. We are also continuing to solicit input from community and Inuit representatives along with the territorial governments and federal agencies involved. While we wait for the minister's decision, we are focused on reducing costs, preserving our cash balance and being prepared for any of the potential outcomes."

On Jan. 27, 2016, the Liberal government announced five interim principles that will be applied by the government of Canada to guide environmental assessment decision making:

  1. No project proponent will be asked to return to the starting line -- project reviews will continue within the current legislative framework and in accordance with treaty provisions, under the auspices of relevant responsible authorities and northern regulatory boards;
  2. Decisions will be based on science, traditional knowledge of indigenous peoples and other relevant evidence;
  3. The views of the public and affected communities will be sought and considered;
  4. Indigenous peoples will be meaningfully consulted, and where appropriate, impacts on their rights and interests will be accommodated;
  5. Direct and upstream greenhouse gas emissions linked to the projects under review will be assessed.

"Sabina believes the Back River project proposal satisfies the applicable principles above and that this is demonstrated by the evidence presented through the process, our continued community engagement and many letters of support from various stakeholders. Sabina's proposal was based on science, traditional knowledge and other relevant evidence, as well as meaningful consultation with Inuit, other indigenous groups and the affected communities. We have requested that the minister return the report to the NIRB to provide terms and conditions for a project certificate. In the alternative, we have requested the minister return the report to the NIRB for further review," concluded Mr. McLeod.

Q2 highlights

  • The company had cash and cash equivalents and short-term investments of $43-million at June 30, 2016.
  • On May 20, 2016, the company completed a bought deal financing of 19,790,750 common shares at $1.63 per share (including a portion of the overallotment) for total gross proceeds of $32.3-million.
  • On June 15, 2016, the company received the report of the NIRB regarding its recommendation to the Minister of Indigenous and Northern Affairs Canada that the Back River project not proceed at this time. The report is now with the minister who can accept or reject the recommendation or send the project back to the NIRB for further review.
  • Subsequent to the quarter, the company submitted a response to the NIRB report to the minister, detailing what the company believes are strong grounds for the minister to reject the NIRB recommendation on the basis that the report does not fully consider the support of the project by the local communities and Inuit representatives in the region, or the evidence presented on the project.
  • On June 8, 2016, the company held an annual general and special meeting of the shareholders, at which all eight director nominees were elected and the company's proposed share compensation plan was approved.
  • For the three months ended June 30, 2016, the company had net income of $200,000 or zero per share.

Financial results

For the quarter ended June 30, 2016, the company had net income of $200,000, favourable by $2.7-million compared with Q2 2015. The difference quarter over quarter was largely the result of writedowns that were recognized in Q2 2015. Additionally, in Q2 2016, the company realized a gain of $700,000 on the sale of a portion of its equity investment in Pure Gold.

For the six-month period ended June 30, 2016, the company had a net loss of $400,000, favourable by $3.6-million compared with the same period of 2015. The difference for the year was as noted above and lower operating expenses in 2016.

Operating expenses for the six-month period ending June 30, 2016, were $1.7-million compared with $3-million in the same period in 2015, favourable by $1.3-million.

The company had cash and cash equivalents and short-term investments of $43-million at June 30, 2016, compared with cash and cash equivalents of $18.4-million at Dec. 31, 2015.

The company expects to end the year with a cash balance of approximately $38-million.

For the full June 30, 2016, interim financial statements and management's discussion and analysis, please see the company website or retrieve them from SEDAR.

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