Vancouver, BC - Timmins Gold Corp. (TSX: TMM, NYSE.MKT: TGD) (the "Company") is pleased to report its second quarter of 2012 financial results for the period ended June 30, 2012. For comparative purposes, Q2 2011 below refers to the three months ended June 30, 2011. All results are presented in United States dollars ("US Dollars") unless otherwise stated. Readers should refer to the Q2 2012 management discussion and analysis and condensed interim consolidated financial statements for complete information.
Q2 2012 HIGHLIGHTS
|In US dollars unless otherwise indicated||
June 30, 2012
June 30, 2011
|Gold sold (oz)||23,499||17,965|
|Silver sold (oz)||14,452||8,622|
|Production costs, excluding depletion and depreciation||18,184,487||9,883,006|
|Profit from operations||13,573,855||10,448,724|
|Earnings per share, basic and diluted||0.04||0.04|
|Cash flows from operations||7,495,862||6,025,776|
|Total cash, end of period||21,168,487||7,970,861|
|Total assets, end of period||182,264,540||131,528,031|
|Total by-product cash costs per gold ounce||758||533|
|Average realized gold price per ounce||1,624||1,504|
"Q2 was a strong quarter operationally as demonstrated by increased profit from operations" stated Mr. Bruce Bragagnolo, CEO of Timmins Gold Corp. "During the quarter we began implementing a comprehensive cost reduction program, the results of which should be seen in the upcoming quarters. We continue with our expansion program and have installed and tested a larger capacity tertiary crusher and screen. The installation of a pre-screening system to increase capacity from the San Francisco crushing circuit by between 6,000 to 8,000 tpd is on schedule with over 80% of the equipment on site. The Company continues to fund all of its operations, expansion and drilling from existing cash flows. The Company believes it is well positioned to continue realizing current gold prices, generating strong margins and increased cash flow from operations."
About Timmins Gold
Focused solely in Mexico, Timmins Gold Corp. is in commercial gold production at its wholly owned San Francisco gold mine in Sonora, Mexico. The mine is an open pit heap leach operation. Timmins Gold has forecast production at a rate in excess of 100,000 ounces of gold per year. (Micon International NI 43-101F1 Technical Report dated November, 2011).
Timmins Gold Corp.
CEO and Director
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Cautionary Note Regarding Forward-Looking Statements
Certain statements contained herein may constitute forward-looking statements and are made pursuant to the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities laws. Forward-looking statements are statements which relate to future events. Such statements include estimates, forecasts and statements as to management's expectations with respect to, among other things, business and financial prospects, financial multiples and accretion estimates, future trends, plans, strategies, objectives and expectations, including with respect to production, exploration drilling, reserves and resources, exploitation activities and events or future operations. Information inferred from the interpretation of drilling results and information concerning mineral resource estimates may also be deemed to be forward-looking statements, as it constitutes a prediction of what might be found to be present when, and if, a project is actually developed.
In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans, "anticipates", believes", "estimates", "predicts", "potential", or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, level of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements.
While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggestions herein. Except as required by applicable law, Timmins Gold does not intend to update any forward-looking statements to conform these statements to actual results.