Vancouver, BC - Timmins Gold Corp. (TSX: TMM, NYSE MKT: TGD) (“Timmins Gold” or the “Company”) is pleased to report its financial results for the third quarter ended September 30, 2016 (“Q3 2016”). The comparative period is the third quarter ended September 30, 2015 (“Q3 2015”). All results are presented in United States dollars (“US Dollars”) unless otherwise stated. Readers should refer to the Q3 2016 management discussion and analysis and condensed interim consolidated financial statements for complete information.
“We are very pleased with our financial performance during the quarter and fiscal year to date,” stated Interim CEO Mark Backens. “Our cash costs for the quarter of $785 per ounce and all-in sustaining cash costs of $846 per ounce were particularly strong and were both 23% lower than the comparable period of the previous year. Of significant note is the great improvement in our balance sheet with over $33 million of positive contribution over the first three quarters of this year during which our cash balance increased to $18.5 million from $9.2 million, our trade payables reduced by over $12.3 million to $14.5 million and we have repaid over $11.8 million in secured debt.
The recently announced work program for the Ana Paula project is well underway with good advance in all top priority pre-construction activities. The pre-construction budget for Ana Paula will be comfortably funded from our treasury.”
Q3 2016 HIGHLIGHTS
As at September 30, 2016, the Company had received $9.25 million from Candelaria in cash payments.
Remaining cash payments are to be received as follows:
SUMMARIZED FINANCIAL STATEMENTS AND OPERATING RESULTS
|US dollars (thousands) except where noted||Q3 2016||Q3 2015|
|Gold ounces sold||23,327||23,387|
|Silver ounces sold||13,868||10,539|
|Production costs, excluding depreciation and depletion||$18,588||$24,132|
|Earnings (loss) from operations||$29,923||$(230,243)|
|Earnings and total comprehensive income||$29,719||$(180,713)|
|Earnings per share, basic and diluted||$0.09||$(0.63)|
|Cash flows from operating activities||$9,844||$(909)|
|Total cash and cash equivalents, end of period||$18,454||$10,431|
|Total assets, end of period||$153,125||$147,697|
|Total cash costs per gold ounce on a by-product basis||$785||$1,026|
|All-in sustaining cash cost per ounce gold||$846||$1,105|
|Average realized gold price per gold ounce||$1,338||$1,137|
Reminder of Q3 2016 results conference call:
The Company’s senior management will host a conference call Thursday November 3, 2016 at 11am (ET) to discuss the results of Q3 2016. Participants may join the call by dialing 416-340-2220 or 866-225-2055 (Canada and U.S. toll-free number) or via webcast on link: http://www.gowebcasting.com/8123
A replay of the call will be available until November 8, 2016, by dialing 905-694-9451 or 800-408-3053 (Canada and U.S.). The passcode is 1171723. A live and archived audio webcast will also be available at www.timminsgold.com.
About Timmins Gold
Timmins Gold is a Canadian gold mining company engaged in exploration, development and production exclusively in Mexico. Its principal assets include the producing San Francisco mine in Sonora, Mexico and the development stage Ana Paula project in Guerrero, Mexico. The Company also has a portfolio of other exploration properties, all of which are located in Mexico.
Timmins Gold Corp.
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, possible capital savings and estimates, and continuing operations at the San Francisco Mine.
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.