Vancouver, BC - Timmins Gold Corp. (TSX: TMM, NYSE.MKT: TGD) (“Timmins Gold” or the “Company”) is pleased to report its financial results for the year ended December 31, 2013. The comparative period is the year ended December 31, 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.
“2013 was a strong year operationally as demonstrated by increased production and strong cash flow generation” stated Mr. Bruce Bragagnolo, CEO of Timmins Gold “We expanded full year production by 26% to 120,900 ounces AuEq. at a cash cost of $717 per ounce. We also completed a major drilling program over the year which increased reserves by 43% excluding depletion (20% net of depletion) to 1.59 million ounces of gold and effectively doubled our mine life to 9.5 years.”
“We finished 2013 with a record fourth quarter and are extremely encouraged that we were able to add $8.7 million to our cash balance during this quarter. This level of free cash flow generation clearly highlights the low all-in cost nature of our San Francisco operation. The Company’s 2014 goal is to produce between 115,000 to 125,000 ounces of gold. With no significant capital expenditures planned for 2014 we are well positioned to continue to generate strong free cash flow.”
SUMMARIZED ANNUAL FINANCIAL STATEMENTS AND OPERATING RESULTS
|US dollars (thousands) unless otherwise indicated||Year ended
December 31, 2013
December 31, 2012
|Gold sold (oz)||118,550||94,128|
|Silver sold (oz)||68,512||56,252|
|Production costs, excluding depletion and depreciation||$86,449||$67,868|
|Earnings from operations||$41,141||$62,938|
|Earnings per share, basic and diluted||$0.11||$0.26|
|Cash flows from operations||$52,413||$51,144|
|Total cash, end of period||$22,776||$24,188|
|Total assets, end of period||$268,514||$217,647|
|Total by-product cash costs per gold ounce||$717||$703|
|Average realized gold price per gold ounce||$1,385||$1,661|
SUMMARIZED Q4 2013 FINANCIAL STATEMENTS AND OPERATING RESULTS
|US dollars (thousands) unless otherwise indicated||Q4 2013||Q4 2012|
|Gold sold (oz)||33,247||24,241|
|Silver sold (oz)||21,847||16,203|
|Production costs, excluding depletion and depreciation||$24,453||$18,021|
|Earnings from operations||$4,245||$16,384|
|Earnings per share, basic and diluted||$(0.03)||$0.08|
|Cash flows from operations||$15,243||$13,373|
|Total cash, end of period||$22,776||$24,188|
|Total assets, end of period||$268,514||$217,304|
|Total by-product cash costs per gold ounce||$723||$723|
|Average realized gold price per gold ounce||$1,249||$1,675|
Reminder of 2013 results conference call:
The Company’s senior management will host a conference call today, Friday, March 7, 2014 at 11am (ET) to discuss the fourth quarter and year ended results. Participants may join the call by registering online through a link on the Timmins Gold website homepage www.timminsgold.com and entering the passcode 845689 or by following this link: https://selfreg-inscriptionauto.confsolutions.ca/webportal/reg.html?Acc=3695912854&Conf=140112
After entering your information, you will be given a passcode and pin that you will need to join the conference call. 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 March 13, 2014, 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.
Technical information contained in this news release was reviewed and approved by Taj Singh, M.Eng., P.Eng., a Vice President of the Company who is recognized as a QP under NI 43-101.
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 115,000 to 125,000 ounces of gold in 2014.
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.