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Sabina Gold & Silver Corp
Symbol C : SBB
Shares Issued 288,134,292
Close 2019-03-25 C$ 1.32
Recent Sedar Documents

Sabina Gold & Silver files 2018 financials

2019-03-25 13:45 ET - News Release

Mr. Bruce McLeod reports

SABINA GOLD & SILVER ANNOUNCES FINANCIAL RESULTS FOR THE YEAR ENDED DECEMBER 31, 2018

Sabina Gold & Silver Corp. has released its financial results for the quarter and year ended Dec. 31, 2018.

"Two thousand eighteen was a year of significant progress for Sabina," commented Bruce McLeod, the company's president and chief executive officer. "We continued on with our two-pronged approach to advance Back River through derisking project development activities as well as continue exploration programs on high-value targets at the Goose property. We are very pleased with what we managed to accomplish last year. We welcomed a new shareholder, Zhaojin International Mining Co. Ltd., who's investment enabled us to fund many of the programs last year; we continued to make progress through detailed engineering, including selecting a vendor for the processing plant; we further derisked the logistics supply chain of the project by building our port facility and successfully completing two sealifts; we received both our Type A and B water licences, critical licences for construction and operations; we received our social licence by completing an agreement for Inuit Impact and Benefits (IIBA) with the Kitikmeot Inuit Association (KIA); we advanced negotiations on a debt package for project financing on reasonable terms; and we made a significant new discovery at the Goose property, as well as continued to demonstrate the multigenerational potential of the Back River district. These are all accomplishments that derisk and create value for our shareholders and poise Sabina to be one of the first companies to outperform in a recovering gold sector."

Fiscal 2018 highlights:

  • The company ended the year with cash, cash equivalents and short-term investments of $50.4-million.
  • Sabina advanced predevelopment activities for the Back River project, including: review of technical and commercial proposals from major vendors for the supply of the gold processing plant; selection of the single major vendor that will supply the gold plant equipment; completion of earthworks activities at the Bathurst Inlet port facility, including the camp pad, construction laydown areas, freight storage pad, shoreline landing pads, desalination pad, and gravel airstrip; commencement of earthworks activities at the Goose property related to initial road and pad construction; and completion of delivery of construction heavy equipment, spares and supplies to the port facility via two sealifts in August and September.
  • The company completed a phased exploration program on the Back River project. In total, the company completed 22,271 metres of drilling, with a significant, new, high-grade discovery in the Nuvuyak gold zone during its summer program. The Nuvuyak gold zone occurs approximately one kilometre to the west of the Goose main deposit, where drill hole 18GSE545 intersected 11.58 grams per tonne gold over 39.5 metres with abundant visible gold.
  • In April, 2018, the company completed a significant milestone for its social licence by jointly announcing with KIA the completion of a definitive framework agreement (FA). The FA, which provides the commercial leases authorizing mine development and operations, is a comprehensive agreement that sets out rights and obligations with respect to surface land access on Inuit-owned land at the Back River project, including an IIBA and other obligations required by the Nunavut land claims agreement.
  • The company received numerous key licences and permits during 2018, most notably:
    • The Type A water licence was received in November, representing a key step in the environmental permitting process and enabling activities at site, including both mine construction and operations.
    • The Type B water licence was received in March, which enabled Sabina to complete certain predevelopment activities at its Back River project during the year, including development of the port facility.
  • The company completed equity financings during 2018 for gross proceeds of $104.6-million, including:
    • An investment by Zhaojin in January, 2018, to purchase 24.93 million common shares at a price of $2.65 per share for gross proceeds of $66.1-million;
    • A bought deal prospectus financing in December, 2018, of 21,091,000 common shares at a price of $1.20 per share combined with a participation rights financing by Zhaojin of 2,317,443 common shares at $1.20 per share for total gross proceeds of $28.1-million;
    • Two flow-through financings for gross proceeds of $8.3-million, all used to incur Canadian exploration expenditures, as defined by the Income Tax Act (Canada), by Dec. 31, 2018;
    • Two private placement financings for gross proceeds of $2.1-million, which allowed Zhaojin to exercise its participation rights and maintain its ownership percentage.
  • For the year ended Dec. 31, 2018, the company reported a net loss of $6.2-million, or two cents per share.

Financial results

For the year ended Dec. 31, 2018, the company reported a net loss of $6.2-million, an increase off $2.4-million, compared with the year ended Dec. 31, 2017. The increase in the loss year over year was driven by higher operating expenses ($2.2-million) and higher deferred income tax expense ($1.2-million), partially offset by an increase in net finance income ($1-million).

For the full Dec. 31, 2018, year-end financial statements and management's discussion and analysis, please see the company website or the company's profile on SEDAR.

About Sabina Gold & Silver Corp.

Sabina Gold & Silver is a well-financed and emerging precious metals company with district-scale, advanced, high-grade gold assets in one of the world's newest, politically stable mining jurisdictions: Nunavut, Canada.

Sabina released a feasibility study on its 100-per-cent-owned Back River gold project, which presents a project that has been designed on a fit-for-purpose basis, with the potential to produce approximately 200,000 ounces a year for approximately 11 years with a rapid payback of 2.9 years.

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