Welcome!

News Feed Item

Timmins Gold Reports Earnings from Operations of $12.9 Million in First Quarter of 2014

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 04/29/14 -- 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, 2014 ("Q1 2014"). The comparative period is the first quarter ended March 31, 2013 ("Q1 2013"). All results are presented in United States dollars ("US Dollars") unless otherwise stated. Readers should refer to the 2014 management discussion and analysis and condensed interim consolidated financial statements for complete information.

"Our mine expansion and cost reduction programs have allowed Timmins Gold to continue to deliver solid operating and financial results" stated Mr. Bruce Bragagnolo, CEO of Timmins Gold. "We expanded production by 22% to over 36,000 gold equivalent ounces at a cash cost of $703 per ounce and generated material free cash. Our balance sheet continues to get stronger, with a cash and cash equivalents balance as at March 31st of over $44 million after paying down $4.5 million in debt and $8.5 million in payables during the quarter. We are well positioned to continue to generate strong free cash flow this year."

Q1 2014 HIGHLIGHTS


--  Metal revenues were a record $47.1 million, compared to $45.9 million
    during Q1 2013. This increase over the prior year is primarily due to
    increased ounces sold, offset by the decrease in the gold price since
    April 2013. The average London PM Fix price was $1,294 per gold ounce,
    compared to $1,632 per gold ounce during Q1 2013. The average realized
    gold price was $1,280 per gold ounce, compared to $1,602 per gold ounce
    during Q1 2013.

--  Earnings from operations were $12.9 million, compared to $19.3 million
    during Q1 2013. This was mainly due to the reduced revenues realized
    from the lower gold price.

--  Earnings and total comprehensive income were $8.1 million or $0.05 per
    share, compared to $14.3 million or $0.10 per share during Q1 2013. 

--  Cash flows provided by operating activities were $12.3 million, compared
    to $21.8 million during Q1 2013. 

--  Cash and cash equivalents at March 31, 2014 were $44.4 million after
    investing $0.5 million on exploration, $0.5 million on sustaining capex,
    $1.6 million on expansion programs and $3.0 million on deferred
    stripping. Cash and cash equivalents at March 31, 2013 were $26.9
    million. 
--  The Company produced a record 35,413 ounces of gold and sold a record
    36,763 ounces of gold, compared to 28,328 and 28,642, respectively,
    during Q1 2013. This change over prior year is due to increased
    throughput and crushing capacity.

--  The Company's cash cost per ounce on a by-product basis was $703 (all-in
    sustaining cash cost per ounce on a by-product basis - $790), compared
    to $703 (all-in sustaining cash cost per ounce on a by-product basis -
    $872) during Q1 2013. The maintenance of cash costs was primarily driven
    by cost reduction initiatives offset by lower grades realized in Q1 2014
    of 0.76 grams of gold per tonne ("g/t Au"), compared to the Q1 2013 0.83
    g/t Au. 

--  On February 11, 2014 the Company closed a bought deal financing which
    generated net proceeds of $24.2 million (C$26.7 million) on issuance of
    18,920,000 common shares of the Company at a price of C$1.50 per share.

--  On February 28, 2014, the Company repaid $4.5 million (C$5.0 million) in
    principal of the $16.4 million (C$18.0 million) loan facility
    outstanding at December 31, 2013. 

--  Timmins Gold is committed to the safety, health and well-being of its
    workers and families. The Company's goal is to continue with its zero-
    incident work environment and strong culture of safety.

SUMMARIZED FINANCIAL STATEMENTS AND OPERATING RESULTS                       
                                                                            
----------------------------------------------------------------------------
                                                                            
US dollars (thousands) unless       First Quarter Ended  First Quarter Ended
 otherwise indicated                     March 31, 2014       March 31, 2013
----------------------------------------------------------------------------
Gold sold (oz)                                   36,763               28,642
----------------------------------------------------------------------------
Silver sold (oz)                                 26,647               14,313
----------------------------------------------------------------------------
Metal revenues                     $             47,050 $             45,889
----------------------------------------------------------------------------
Production costs, excluding                                                 
 depreciation and depletion        $             26,357 $             20,505
----------------------------------------------------------------------------
Earnings from operations           $             12,861 $             19,253
----------------------------------------------------------------------------
Earnings                           $              8,105 $             14,291
----------------------------------------------------------------------------
Earnings per share, basic and                                               
 diluted                           $               0.05 $               0.10
----------------------------------------------------------------------------
Cash flows from operations         $             12,259 $             21,824
----------------------------------------------------------------------------
Total cash and cash equivalents,                                            
 end of period                     $             44,378 $             26,852
----------------------------------------------------------------------------
Total assets, end of period        $            287,919 $            239,075
----------------------------------------------------------------------------
Total cash costs per gold ounce on                                          
 a by-product basis                $                703 $                703
----------------------------------------------------------------------------
Average realized gold price per                                             
 gold ounce                        $              1,280 $              1,602
----------------------------------------------------------------------------

Reminder of Q1 2014 results conference call:

The Company's senior management will host a conference call Wednesday April 30, 2014 at 11am (ET) to discuss the first quarter. Participants may join the call by registering online through a link on the Timmins Gold website homepage www.timminsgold.com and entering the passcode 975723 or by following this link:

https://selfreg-inscriptionauto.confsolutions.ca/webportal/reg.html?Acc=3695912854&Conf=143653.

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 May 7, 2014, by dialing 1-800-408-3053 (Canada and U.S.) or 1-905-694-9451 (International) with the passcode 9609415. 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.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it m...
With billions of sensors deployed worldwide, the amount of machine-generated data will soon exceed what our networks can handle. But consumers and businesses will expect seamless experiences and real-time responsiveness. What does this mean for IoT devices and the infrastructure that supports them? More of the data will need to be handled at - or closer to - the devices themselves.
When you focus on a journey from up-close, you look at your own technical and cultural history and how you changed it for the benefit of the customer. This was our starting point: too many integration issues, 13 SWP days and very long cycles. It was evident that in this fast-paced industry we could no longer afford this reality. We needed something that would take us beyond reducing the development lifecycles, CI and Agile methodologies. We made a fundamental difference, even changed our culture...
Updating DevOps to the latest production data slows down your development cycle. Probably it is due to slow, inefficient conventional storage and associated copy data management practices. In his session at @DevOpsSummit at 20th Cloud Expo, Dhiraj Sehgal, in Product and Solution at Tintri, will talk about DevOps and cloud-focused storage to update hundreds of child VMs (different flavors) with updates from a master VM in minutes, saving hours or even days in each development cycle. He will also...
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
Things are changing so quickly in IoT that it would take a wizard to predict which ecosystem will gain the most traction. In order for IoT to reach its potential, smart devices must be able to work together. Today, there are a slew of interoperability standards being promoted by big names to make this happen: HomeKit, Brillo and Alljoyn. In his session at @ThingsExpo, Adam Justice, vice president and general manager of Grid Connect, will review what happens when smart devices don’t work togethe...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
Some people worry that OpenStack is more flash then substance; however, for many customers this could not be farther from the truth. No other technology equalizes the playing field between vendors while giving your internal teams better access than ever to infrastructure when they need it. In his session at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will talk through some real-world OpenStack deployments and look into the ways this can benefit customers of all sizes....
SYS-CON Events announced today that Addteq will exhibit at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Addteq is one of the top 10 Platinum Atlassian Experts who specialize in DevOps, custom and continuous integration, automation, plugin development, and consulting for midsize and global firms. Addteq firmly believes that automation is essential for successful software releases. Addteq centers its products an...
In his session at @ThingsExpo, Sudarshan Krishnamurthi, a Senior Manager, Business Strategy, at Cisco Systems, will discuss how IT and operational technology (OT) work together, as opposed to being in separate siloes as once was traditional. Attendees will learn how to fully leverage the power of IoT in their organization by bringing the two sides together and bridging the communication gap. He will also look at what good leadership must entail in order to accomplish this, and how IT managers ca...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain.
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settle...
Building a cross-cloud operational model can be a daunting task. Per-cloud silos are not the answer, but neither is a fully generic abstraction plane that strips out capabilities unique to a particular provider. In his session at 20th Cloud Expo, Chris Wolf, VP & Chief Technology Officer, Global Field & Industry at VMware, will discuss how successful organizations approach cloud operations and management, with insights into where operations should be centralized and when it’s best to decentraliz...
TechTarget storage websites are the best online information resource for news, tips and expert advice for the storage, backup and disaster recovery markets. By creating abundant, high-quality editorial content across more than 140 highly targeted technology-specific websites, TechTarget attracts and nurtures communities of technology buyers researching their companies' information technology needs. By understanding these buyers' content consumption behaviors, TechTarget creates the purchase inte...