NYSE MKT: TGD • $0.48     TSX: TMM • $0.65     Gold: 1256.84


Timmins Gold Reports Cash flow From Operations of $13.3 million for fiscal 2015

March 16, 2016


Vancouver, BC - Timmins Gold Corp. (TSX: TMM, NYSE MKT: TGD) (“Timmins Gold” or the “Company”) reports its financial results for the year ended December 31, 2015 (“fiscal 2015”). The comparative period is the year ended December 31, 2014 (“fiscal 2014”). All results are presented in United States dollars (“US Dollars”) unless otherwise stated. Readers should refer to the fiscal 2015 management discussion and analysis and audited consolidated financial statements for complete information.

“In the fourth quarter, mining operations at San Francisco were negatively affected by greater than expected waste tonnes mined due to block model variability versus forecast,” stated Interim CEO Mark Backens. “We have made adjustments to the model and operating plan and we have already seen a positive difference to date in Q1 2016. Due to the recent rise in gold prices, we are evaluating the possibility of mine life extension beyond 2016. In the meantime, we remain on track to achieve 2016 objectives which is to produce between 75,000 and 85,000 gold ounces at a cash cost of $750 to $850 per gold ounce.”


Operating performance

Key developments

Recent developments


US dollars (thousands) except where noted Q4 2015 Q4 2014 Fiscal 2015 Fiscal 2014
Gold ounces sold 22,786 25,007 93,196 121,441
Silver ounces sold 13,158 16,322 52,047 85,262
Metal revenues $25,310 $30,400 $109,192 $154,068
Production costs, excluding depreciation and depletion $26,459 $23,508 $95,542 $97,525
(Loss) earnings from operations ($9,453) ($1,854) ($241,778) $22,167
(Loss) earnings ($9,517) ($3,701) ($190,311) $9,187
(Loss) earnings per share, basic and diluted ($0.14) $(0.02) ($0.77) $0.06
Cash flows from operating activities $2,091 ($2,726) $13,290 $33,054
Total cash and cash equivalents, end of period (including restricted cash) $11,499 $26,952 $11,499 $26,952
Total assets, end of period $152,837 $311,947 $152,837 $311,947
Total cash costs per gold ounce on a by-product basis $1,153 $930 $1,017 $790
All-in sustaining cash cost per ounce gold $1,289 $1,045 $1,144 $925
Average realized gold price per gold ounce $1,105 $1,216 $1,172 $1,269


Reminder of fiscal 2015 results conference call:

The Company’s senior management will host a conference call Thursday March 17, 2016 at 11am (ET) to discuss fiscal 2015.  Participants may join the call by dialing 416-695-7806 or 888-789-9572 (Canada and U.S. toll-free number) or via webcast on link: http://www.gowebcasting.com/7309.

A replay of the call will be available until March 22, 2016, by dialing 905-694-9451 or 800-408-3053 (Canada and U.S.). The passcode is 2625102.  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, P.Eng., a Vice President of the Company who is recognized as a QP under NI 43-101.

About Timmins Gold

The Company owns and operates the San Francisco open pit, heap leach gold mine in Sonora, which provides a base of operations, allowing the Company to develop two economically robust growth projects with manageable capital requirements, the Ana Paula and Caballo Blanco gold projects.

Timmins Gold Corp.
Mark Backens
Interim CEO and Director

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 including projected production (and estimated cash costs). Such statements include estimates, forecasts and statements as to management’s expectations with respect to, among other things, receipt of the requisite approvals for business and financial prospects, financial multiples and accretion estimates, future trends, plans, strategies, objectives and expectations, including with respect to liquidity, working capital management and to production (including  production at Ana Paula and Caballo Blanco), possible capital savings and estimates of pre-production capital at Ana Paula, 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, the Company does not intend to update any forward-looking statements to conform these statements to actual results.