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.

Contacts:
Timmins Gold Corp.
Bruce Bragagnolo
CEO and Director
604-638-8980
[email protected]
www.timminsgold.com

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
Today most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes significant work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reducti...
Real IoT production deployments running at scale are collecting sensor data from hundreds / thousands / millions of devices. The goal is to take business-critical actions on the real-time data and find insights from stored datasets. In his session at @ThingsExpo, John Walicki, Watson IoT Developer Advocate at IBM Cloud, will provide a fast-paced developer journey that follows the IoT sensor data from generation, to edge gateway, to edge analytics, to encryption, to the IBM Bluemix cloud, to Wa...
What is the best strategy for selecting the right offshore company for your business? In his session at 21st Cloud Expo, Alan Winters, U.S. Head of Business Development at MobiDev, will discuss the things to look for - positive and negative - in evaluating your options. He will also discuss how to maximize productivity with your offshore developers. Before you start your search, clearly understand your business needs and how that impacts software choices.
Enterprises are moving to the cloud faster than most of us in security expected. CIOs are going from 0 to 100 in cloud adoption and leaving security teams in the dust. Once cloud is part of an enterprise stack, it’s unclear who has responsibility for the protection of applications, services, and data. When cloud breaches occur, whether active compromise or a publicly accessible database, the blame must fall on both service providers and users. In his session at 21st Cloud Expo, Ben Johnson, C...
Most of the time there is a lot of work involved to move to the cloud, and most of that isn't really related to AWS or Azure or Google Cloud. Before we talk about public cloud vendors and DevOps tools, there are usually several technical and non-technical challenges that are connected to it and that every company needs to solve to move to the cloud. In his session at 21st Cloud Expo, Stefano Bellasio, CEO and founder of Cloud Academy Inc., will discuss what the tools, disciplines, and cultural...
SYS-CON Events announced today that Fusic will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Fusic Co. provides mocks as virtual IoT devices. You can customize mocks, and get any amount of data at any time in your test. For more information, visit https://fusic.co.jp/english/.
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of...
21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Me...
With the rise of DevOps, containers are at the brink of becoming a pervasive technology in Enterprise IT to accelerate application delivery for the business. When it comes to adopting containers in the enterprise, security is the highest adoption barrier. Is your organization ready to address the security risks with containers for your DevOps environment? In his session at @DevOpsSummit at 21st Cloud Expo, Chris Van Tuin, Chief Technologist, NA West at Red Hat, will discuss: The top security r...
SYS-CON Events announced today that Enroute Lab will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enroute Lab is an industrial design, research and development company of unmanned robotic vehicle system. For more information, please visit http://elab.co.jp/.
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
IBM helps FinTechs and financial services companies build and monetize cognitive-enabled financial services apps quickly and at scale. Hosted on IBM Bluemix, IBM’s platform builds in customer insights, regulatory compliance analytics and security to help reduce development time and testing. In his session at 21st Cloud Expo, Lennart Frantzell, a Developer Advocate with IBM, will discuss how these tools simplify the time-consuming tasks of selection, mapping and data integration, allowing devel...
SYS-CON Events announced today that Mobile Create USA will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Mobile Create USA Inc. is an MVNO-based business model that uses portable communication devices and cellular-based infrastructure in the development, sales, operation and mobile communications systems incorporating GPS capabi...
There is huge complexity in implementing a successful digital business that requires efficient on-premise and cloud back-end infrastructure, IT and Internet of Things (IoT) data, analytics, Machine Learning, Artificial Intelligence (AI) and Digital Applications. In the data center alone, there are physical and virtual infrastructures, multiple operating systems, multiple applications and new and emerging business and technological paradigms such as cloud computing and XaaS. And then there are pe...
Today traditional IT approaches leverage well-architected compute/networking domains to control what applications can access what data, and how. DevOps includes rapid application development/deployment leveraging concepts like containerization, third-party sourced applications and databases. Such applications need access to production data for its test and iteration cycles. Data Security? That sounds like a roadblock to DevOps vs. protecting the crown jewels to those in IT.