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
"ZeroStack is a startup in Silicon Valley. We're solving a very interesting problem around bringing public cloud convenience with private cloud control for enterprises and mid-size companies," explained Kamesh Pemmaraju, VP of Product Management at ZeroStack, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
"Codigm is based on the cloud and we are here to explore marketing opportunities in America. Our mission is to make an ecosystem of the SW environment that anyone can understand, learn, teach, and develop the SW on the cloud," explained Sung Tae Ryu, CEO of Codigm, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
High-velocity engineering teams are applying not only continuous delivery processes, but also lessons in experimentation from established leaders like Amazon, Netflix, and Facebook. These companies have made experimentation a foundation for their release processes, allowing them to try out major feature releases and redesigns within smaller groups before making them broadly available. In his session at 21st Cloud Expo, Brian Lucas, Senior Staff Engineer at Optimizely, discussed how by using ne...
"CA has been doing a lot of things in the area of DevOps. Now we have a complete set of tool sets in order to enable customers to go all the way from planning to development to testing down to release into the operations," explained Aruna Ravichandran, Vice President of Global Marketing and Strategy at CA Technologies, in this SYS-CON.tv interview at DevOps Summit at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"There's plenty of bandwidth out there but it's never in the right place. So what Cedexis does is uses data to work out the best pathways to get data from the origin to the person who wants to get it," explained Simon Jones, Evangelist and Head of Marketing at Cedexis, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
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...
"Infoblox does DNS, DHCP and IP address management for not only enterprise networks but cloud networks as well. Customers are looking for a single platform that can extend not only in their private enterprise environment but private cloud, public cloud, tracking all the IP space and everything that is going on in that environment," explained Steve Salo, Principal Systems Engineer at Infoblox, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventio...
Data scientists must access high-performance computing resources across a wide-area network. To achieve cloud-based HPC visualization, researchers must transfer datasets and visualization results efficiently. HPC clusters now compute GPU-accelerated visualization in the cloud cluster. To efficiently display results remotely, a high-performance, low-latency protocol transfers the display from the cluster to a remote desktop. Further, tools to easily mount remote datasets and efficiently transfer...
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"We're developing a software that is based on the cloud environment and we are providing those services to corporations and the general public," explained Seungmin Kim, CEO/CTO of SM Systems Inc., in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.