Vancouver, BC - Timmins Gold Corp. (TSX: TMM, NYSE MKT: TGD) (“Timmins Gold” or the “Company”) is pleased to report its financial results for the first quarter ended March 31, 2016 (“Q1 2016”). The comparative period is the first quarter ended March 31, 2015 (“Q1 2015”). All results are presented in United States dollars (“US Dollars”) unless otherwise stated. Readers should refer to the Q1 2016 management discussion and analysis and condensed interim consolidated financial statements for complete information.
“Q1 was a solid start to the year in terms of operations” stated Interim CEO Mark Backens. “We are seeing the benefits of the mine plan adopted in Q4 2015. Our cash costs for the quarter ($761/oz) and all-in sustaining cash costs ($848/oz) were particularly strong and were respectively 18% and 12% lower compared to Q1 2015. We were able to generate significant cash from operations and this allowed us to materially reduce our mine-level payables during the quarter. Based on this strong start to the year we remain on track to achieve our 2016 guidance of 75,000 to 85,000 gold ounces with cash costs of approximately $750 to $850 per gold ounce sold.”
Q1 2016 HIGHLIGHTS
The cash proceeds from this sale will be used to settle secured debt.
SUMMARIZED FINANCIAL STATEMENTS AND OPERATING RESULTS
|US dollars (thousands) except where noted||First Quarter Ended
March 31, 2016
|First Quarter Ended
March 31, 2015
|Gold ounces sold||24,667||24,155|
|Silver ounces sold||14,671||15,309|
|Production costs, excluding depreciation and depletion||$18,993||$22,599|
|Loss from operations||$(8,585)||$(222)|
|Loss per share, basic and diluted||$(0.03)||$(0.00)|
|Cash flows from operating activities||$2,373||$7,500|
|Total cash and cash equivalents, end of period (including restricted cash)||$10,668||$24,994|
|Total assets, end of period||$138,741||$312,411|
|Total cash costs per gold ounce on a by-product basis||$761||$925|
|All-in sustaining cash cost per ounce gold||$848||$1,055|
|Average realized gold price per gold ounce||$1,160||$1,221|
On May 12, 2016, Mr. Darren Prins, CFO, announced his resignation to pursue a career in the financial services industry. Although we are disappointed by this, we wish Darren continued success and congratulate him on this new opportunity.
Reminder of Q1 2016 results conference call:
The Company’s senior management will host a conference call Friday May 13, 2016 at 11am (ET) to discuss fiscal 2015. Participants may join the call by dialing 416-340-2216 or 866-225-0198 (Canada and U.S. toll-free number) or via webcast on link: http://www.gowebcasting.com/7516.
A replay of the call will be available until May 18, 2016, by dialing 905-694-9451 or 800-408-3053 (Canada and U.S.). The passcode is 8924192. 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 the Ana Paula gold project.
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, 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.