19:58:47 EDT Tue 30 Apr 2024
Enter Symbol
or Name
USA
CA



GoGold Resources Inc
Symbol GGD
Shares Issued 326,488,511
Close 2023-12-18 C$ 1.21
Market Cap C$ 395,051,098
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GoGold Resources loses $7.89M (U.S.) in fiscal 2023

2023-12-19 12:31 ET - News Release

Mr. Brad Langille reports

GOGOLD COMPLETES CONSTRUCTION OF ZINC CIRCUIT AT PARRAL AND RELEASES FINANCIAL RESULTS FOR 2023

GoGold Resources Inc. has released financial results for the year ending Sept. 30, 2023, with Parral generating $30-million (all amounts are in U.S. dollars) from the sale of 1.4 million silver equivalent ounces.

"As we look forwards towards 2024 and the opportunity for value creation for GoGold shareholders, it cannot be understated that the company is well positioned with such a strong balance sheet, including $95-million and strong economics demonstrated from the preliminary economic assessments at Los Ricos North and South. At Los Ricos South, we've been working with our technical team and consultants to complete all engineering and technical work required to make a construction decision on the project in the upcoming year. As part of this work, we are in the process of completing a definitive feasibility study which we expect to release in the first six months of 2024, and advancing the mine permitting application process," said Brad Langille, president and chief executive officer. "At Parral, we've completed construction of our SART zinc circuit on time and on budget and are currently in the commissioning process. We expect to see the benefits of this project both in an increase in free cash flow and production from Parral in the upcoming year."

Highlights for the year ending Sept. 30, 2023:

  • Cash of $95.3-million;
  • Revenue of $30.3-million on the sale of 1.4 million silver equivalent ounces at a realized price per ounce of $22.07 per oz;
  • Net loss of $7.9-million, after deduction of non-cash inventory valuation adjustment of $10.5-million and asset impairment charge of $3-million;
  • Production of 1,517,264 silver equivalent ounces, consisting of 706,891 silver ounces, 7,032 gold ounces and 615 copper tonnes;
  • Adjusted cash cost per silver equivalent ounce of $15.01;
  • Adjusted all-in sustaining cost per silver equivalent ounce of $20.78.

During 2023, while the tests and construction of the SART zinc circuit were under way, the company completed a rehandling program at Parral which resulted in creating additional space on the heap leach pad which will defer capital expenditures on the project. As a result, a negative inventory adjustment of $10.5-million was recorded in the year resulting in an increased operating and net loss. As a result of the rehandling project, production decreased during the year, and the decline in results constituted an indicator of impairment in the quarter ending Sept. 30, 2023. An impairment assessment was completed resulting in the recognition of a non-cash pretax impairment loss of $3-million. The operation of the SART zinc circuit in 2024 should return Parral to normal profitable operations.

This news release should be read in conjunction with the consolidated financial statements for the year ended Sept. 30, 2023, notes to the financial statements, and management's discussion and analysis for the year ended Sept. 30, 2023, which have been filed on SEDAR+ and are available on the company's website. The company's annual information form has also been filed and is available on SEDAR and the company's website.

Technical information contained in this news release with respect to GoGold has been reviewed and approved by Bob Harris, PEng, who is a qualified person for the purposes of National Instrument 43-101.

About GoGold Resources Inc.

GoGold Resources is a Canadian-based silver and gold producer focused on operating, developing, exploring and acquiring high-quality projects in Mexico. The company operates the Parral tailings mine in the state of Chihuahua and has the Los Ricos South and Los Ricos North exploration projects in the state of Jalisco. Headquartered in Halifax, N.S., GoGold is building a portfolio of low-cost, high-margin projects.

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