NYSE MKT: TGD • $0.48     TSX: TMM • $0.65     Gold: 1251.67

2013

Timmins Gold Reports results for Q2 2013


August 8, 2013

Vancouver, BC - Timmins Gold Corp. (TSX: TMM, NYSE.MKT: TGD) (the "Company") is pleased to report its financial results for the second quarter ended June 30, 2013. The comparative period is the three months ended June 30, 2012. All results are presented in United States dollars ("US Dollars") unless otherwise stated. Readers should refer to the 2013 management discussion and analysis and consolidated financial statements for complete information.

SECOND QUARTER HIGHLIGHTS


SUMMARIZED ANNUAL FINANCIAL STATEMENTS AND OPERATING RESULTS

US dollars (thousands) unless otherwise indicated
Second Quarter Ended
June 30, 2013
Second Quarter Ended
June 30, 2012
Gold sold (oz)
28,024
23,499
Silver sold (oz)
16,124
14,452
Metal revenues
$35,123
$38,160
Production costs, excluding depletion and depreciation
$20,020
$17,021
Profit from operations
$3,382
$14,345
Earnings
$972
$6,715
Earnings per share, basic and diluted
$0.01
$0.05
Cash flows from operations
$4,678
$9,610
Cash flows from operations before changes in non-cash working capital
$12,103
$18,615
Total cash, end of period
$14,362
$21,168
Total assets, end of period
$248,021
$181,411
By-product cash costs per gold ounce
$705
$709
All-in sustaining cash cost per gold ounce
$855
$1,048
Average realized gold price per gold ounce
$1,253
$1,624

 

"Q2 was a very challenging quarter for the entire gold sector. For the Company, the high levels of volatility and rapid decline in the gold price led to decreased revenues and a $5.5 million impairment on our ore stockpile" stated Mr. Bruce Bragagnolo, CEO of Timmins Gold Corp. "On a positive note, our production has stabilized and our all-in sustaining cash costs are among the lowest in the gold industry. Despite the impairment, the Company still managed positive earnings. At current gold prices, the Company remains self financed and expects to generate free cash flow for the remainder of the year."

Reminder of Q2 2013 results conference call:

The Company's senior management will host a conference call to discuss Q2 2013 financial results on August 8, 2013 at 11:45 am (EST). Participants may join the call by registering online through a link on the Timmins Gold website homepage www.timminsgold.com and entering the following passcode 845689 or following this linkhttp://selfreg6.bellconferia.ca/webportal3/reg.html?Acc=1264852366&Conf=125178. After entering your information, you will be given a passcode and pin that you will need to join the conference call on August 8. Participants may join the call by dialing toll free 1-888-789-9572 (Canada and U.S.) or 1-416-695-7806 (International) and entering their personal passcode and pin. A replay of the call will be available after the call until August 14, 2013, by dialing 1-800-408-3053 (Canada and U.S.) or 1-905-694-9451 (International) with the passcode 4685359. A live and archived audio webcast will also be available at www.timminsgold.com.

About Timmins Gold

Timmins Gold is in commercial gold production at its wholly owned San Francisco Gold Property in Sonora, Mexico. The mine is an open pit heap leach operation from which Timmins Gold has projected production of 125,000 to 130,000 ounces of gold in 2013. 

On behalf of the Board:

Bruce Bragagnolo, LLB
Chief Executive Officer
604-638-8980
bruce@timminsgold.com

For further information:

Alex P. Tsakumis
Vice President, Corporate Development
604-638-8976
alex@timminsgold.com

Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) nor the New York Stock Exchange MKT accepts responsibility for the adequacy or accuracy of this news release.

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.