Mr. James Hesketh reports
ATNA RESOURCES ANNOUNCES THIRD QUARTER 2012 EARNINGS AND OPERATIONS
Atna Resources Ltd. has released its unaudited interim financial results for the company's third quarter ended Sept. 30, 2012. Unless otherwise designated, all amounts are in United States dollars. Additional details may be found in the MD&A (management's discussion and analysis) and financials filed on SEDAR and EDGAR, or on the company's website.
Highlights for third quarter 2012
- Atna generated net income of $700,000, one cent per basic share, net of an income tax benefit. Income before income tax was $500,000.
- Net cash provided by operating activities was $1.3-million. Cash provided by operating activities before working capital adjustments was $2.6-million. As of quarter-end, cash and cash equivalents were $20.7-million.
- Gold sales from the Briggs mine totalled 8,600 ounces, 6 per cent higher than in second quarter 2012. Briggs produced $4.1-million in operating cash flow and $3.4-million of income before tax.
- Issuance of 17.25 million shares and 1,035,000 warrants netted $16.3-million in September, 2012, expected to be more than sufficient to fully finance and complete the Pinson underground mine development.
- Development of the underground mine at Pinson remains on track with the initial development of two ore mining areas (stopes). Two additional stopes are presently under development. A total of 1,041 feet of development was completed, and 1,922 tons of oxide and sulphide ores were mined and stockpiled.
- Three operating crews are presently employed at Pinson working two 10-hour shifts, seven days per week. A fourth operating crew is being added to expand the working schedule to a 24-hour-per-day, seven-day-per-week operation.
- Construction of surface facilities at Pinson including an assay lab, backfill facilities, expanded surface stockpile areas and dewatering capacity will be completed or nearing completion in the fourth quarter 2012.
- A seven-hole metallurgical drilling program was completed at the Columbia gold project with positive results indicating continuity and good grades. An environmental and technical baseline study was also conducted during the quarter.
- Final topsoil placement was completed during the quarter at the company's Kendall mine closure site in Montana.
Outlook and strategy
The company expects the gold market to remain robust in 2012 and the foreseeable future. Atna therefore plans to continue executing upon the strategy of developing its portfolio of advanced-stage growth projects using the cash flow from existing mines, supplemented by proceeds from stock issued in third quarter 2012. The company plans to begin shipping ore from Pinson in fourth quarter 2012 and to complete primary development and ramp-up the Pinson underground mine to commercial production levels by the end of first quarter 2013. Once Pinson has achieved positive cash flow, the cash generated from both Briggs and Pinson will be used to strengthen Atna's balance sheet by reducing debt and accumulating cash. This strategy will provide the opportunity for financing the sequential development of the Reward gold project and future projects in a measured and controlled manner. The company believes that this strategy will build shareholder value, while allowing the company to grow and prosper even in today's difficult capital markets.
Management will host a conference call on Wednesday, Nov. 14, 2012, at 11 a.m. Eastern Time, to discuss these results and general corporate and project activities. Participants in the U.S. and Canada dial 877-559-1977; international callers dial 660-422-4979. Please reference conference ID No. 70361056.
A replay of the call will be available through 10 p.m. Eastern Time on Nov. 16, 2012, by dialling 855-859-2056 or 404-537-3406. Please reference conference ID No. 70361056.
For additional information on Atna, its mining, development and exploration projects, please visit its website.
STATEMENTS OF OPERATIONS
Three months ended Nine months ended
Sept. 30, Sept. 30,
2012 2011 2012 2011
Revenues $14,236,800 $16,597,400 $43,268,800 $37,560,500
Cost of sales, excluding depreciation
and amortization 8,988,700 8,962,900 25,231,700 22,052,200
Depreciation, cost of sales 1,960,200 2,364,200 5,983,200 5,553,900
Depreciation, general and
administrative 17,000 32,600 48,800 97,800
General and administrative 1,025,900 893,100 3,165,900 2,954,000
Exploration 783,800 224,300 1,203,800 515,200
Other expense, net 954,700 1,648,900 2,211,700 2,919,000
Income tax (benefit) expense (228,300) - 825,700 -
Net income 734,800 2,471,400 4,598,000 3,468,400
Comprehensive gain 147,200 3,639,700 3,931,900 4,623,700
Basic and diluted income per share 0.01 0.02 0.04 0.03