Click here to close now.


News Feed Item

Elgin Mining Reports First Quarter 2014 Results

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/13/14 -- Elgin Mining Inc. ("Elgin Mining" or the "Company") (TSX:ELG) reports its financial and operational results for the three months ended March 31, 2014. Elgin Mining owns and operates the Bjorkdal gold mine ("Bjorkdal Mine") in Sweden, and holds the past-producing Lupin gold mine ("Lupin") and the Ulu gold property in Nunavut, Canada. All figures are in United States dollars(1) ($ or USD) unless otherwise indicated.

A copy of the Company's financial statements and Management's Discussion and Analysis can be viewed on the Company's website at or on SEDAR at

First Quarter 2014 Financial Highlights

--  Gold production of 10,812 ounces which was ahead of plan for the
--  Cash cost of $932 and all-in sustaining cost ("AISC") of $1,161 per gold
    ounce sold; 
--  Cash cost of $1,049 and AISC of $1,284 per gold ounce produced;  
--  Cash flow from operating activities was $2.0 million, and increased to
    $4.2 million when non-cash working capital movements are excluded; and 
--  Cash improved by $0.1 million during the quarter after debt repayments
    of $0.3 million. 

First Quarter 2014 Operational Highlights

--  Underground ("UG") mine productivity continued to exceed early
    expectations with the UG unit mining rate reaching close to 2,000 ore
    tonnes per day. Lower UG head grades in the quarter were due to a three
    week delay in mine sequencing to finalize a ventilation raise, with
    higher planned grades expected for the remainder of the year; 
--  Open Pit ("OP") head grades were above plan reflecting the benefits of
    the mine's on-going grade control efforts; 
--  Unit mining costs in both the UG and OP have trended significantly
    downwards from elevated levels in 2013 due to the Company's continued
    focus to reduce costs and optimize operational efficiencies. In the OP,
    the mine has reverted to the previous lower-cost drill and blast
    patterns for the full quarter, and in the UG, the transition from
    contractor to owner-operated mining that commenced in Q4-2013 continues
    to deliver a high-level of productivity, helping to drive down unit
--  Plant reached record daily throughput towards the end of the quarter
    without any loss in the plant's metallurgical recovery rate, mainly due
    to improvements in the flotation circuit; 
--  Permit application to expand the plant's annual throughput limit from
    1.3 million tonnes to 1.5 million tonnes remains on track with receipt
    of the temporary expansion permit anticipated by the end of 2014; and 
--  Completed a detailed structural and geological review of the deposit
    which has led to the identification of several potential high-grade UG
    targets at the Bjorkdal Mine which the Company will drill test in the
    coming quarters. 

(1) Effective January 1, 2014, the Company changed its presentation currency from the Canadian dollar to the United States dollar to improve comparability of its financial results with those of its gold mining peers and to allow easier comparison of the Company's financial numbers to other measures that are quoted in USD, including the price of gold and key performance indicators used within the gold mining industry.

Re-affirmation of Bjorkdal Mine 2014 Guidance

The Bjorkdal Mine's first quarter gold production is traditionally the weakest quarter of the year due to the cold weather impact on the plant's crushing and milling circuits, and on labour and equipment productivity within the mines, in addition to being the shortest quarter in the year. Despite these factors, production is still ahead of target and was in fact the best Q1 since the restart of mining operations in 2006.

The ongoing improvements have definitely taken hold and now that the UG mine sequencing is back on track, second quarter gold production to May 12, 2014 (42 days out of the 91 days in the quarter) currently stands at 6,242 gold ounces from the processing of an approximate equal mix of UG and OP ore feed. The strong start to this quarter is attributable to higher UG grades as planned and continued higher OP head grades which have put the Company on track year-to-date to meet or exceed the higher end of production guidance for 2014.

The Company's full year 2014 guidance for gold production and unit cash cost is as follows:

2014 Gold Production Guidance       Production Low-end   Production High-end
Gold production (ounces)                        44,000                49,000
Cash cost per gold ounce produced                                           
 (USD/ounce)                                      $982                  $886
AISC per gold ounce produced                                                
 (USD/ounce)                                    $1,227                $1,106
AISC per gold ounce produced                                                
 excluding non-cash accretion and                                           
 share-based payment expense                                                
 (USD/ounce)                                    $1,207                $1,088
Sustaining capital (USD)                  $7.9 million          $7.9 million
SEK per USD FX rate assumption                    6.50                  6.50
CAD per USD FX rate assumption                    1.10                  1.10

The above AISC guidance includes all capital expenditures (including capitalized exploration) expected to be incurred at the Bjorkdal Mine for 2014, and all general and administration costs incurred at the Company's corporate office in Canada.

Management forecasts that full year gold production will be at the high end of the range while AISC per gold ounce produced will be at the low-end of the range provided.

Patrick Downey, President and CEO, commented, "We have had a good start to 2014 as our operational improvements have continued to provide increased productivity and improved unit costs. The OP and UG operations are performing extremely well, and we can expect to see greater UG productivity and lower unit costs as final ramp-up is achieved later in 2014. These improvements have continued well into Q2 where our grades to the mill have continued to ramp up and we expect to have a very solid Q2 in terms of gold ounces produced, cash cost per ounce, and AISC per ounce. There are now three expected quarters in a row where the mine and overall operation have performed at or above plan. We are also now proceeding with our 15% mill expansion to increase processing capacity from 1.3 million tonnes to 1.5 million tonnes annually. This additional capacity should increase overall gold production to 55,000 to 60,000 ounces per year with expected low capital expenditures, mainly related to mill upgrades.

Following up on our successful exploration program during 2013, we have recently completed a detailed structural and geological study of the ore body and have now identified some very exciting targets which will be drilled tested in 2014 as part of our exploration budget."

First Quarter 2014 Financial and Operational Summaries

                                              For the three   For the three 
                                               months ended    months ended 
                                             March 31, 2014  March 31, 2013 
FINANCIAL DATA                                                              
Revenue                                       $  14,884,095   $  16,601,659 
Production costs, excluding depreciation and                                
 depletion                                    $  10,535,150   $  13,195,614 
Income from mining operations                 $   1,056,709   $     951,485 
Exploration expense                           $       2,939   $     122,882 
Corporate administration                      $     703,179   $   1,293,904 
Lupin care and maintenance                    $     390,718   $   2,485,195 
Net loss                                      $    (613,961)  $  (3,569,845)
Net loss per share                                                          
- Basic                                       $       (0.00)  $       (0.02)
- Diluted                                     $       (0.00)  $       (0.02)
Cash flow provided by operating activities    $   2,006,167   $  (2,772,394)
Cash and cash equivalents                     $  12,501,725   $  10,861,475 
Working capital                               $   9,975,100   $  16,212,713 
Long-term debt, non-current                   $   3,048,271   $     612,470 
Capital expenditures                          $   1,808,910   $   2,779,943 
OPERATING DATA                                                              
Gold ounces produced                                 10,812          10,034 
Gold ounces sold                                     11,136          10,644 
Average realized gold price (USD per ounce)   $       1,384   $       1,618 
Cash cost per gold ounce sold (USD per                                      
 ounce)                                       $         932   $       1,246 
All-in sustaining cost per gold ounce sold                                  
 (USD per ounce)                              $       1,161   $       1,606 
Cash cost per gold ounce produced (USD per                                  
 ounce)                                       $       1,049   $       1,347 
All-in sustaining cost per gold ounce                                       
 produced (USD per ounce)                     $       1,284   $       1,729 

Conference Call Details

Elgin Mining will host a conference call on Wednesday, May 14th, 2014 at 2:00 pm (Eastern Time).

Live Dial-In Information

Toronto and International: 416-695-7806 passcode: 7551641

North America (Toll Free): 866-696-5910 passcode: 7551641

Replay Call Information

Toronto and International: 905-694-9451 passcode: 9378295

North America (Toll Free): 800-408-3053 passcode: 9378295

The conference call replay will be available from 7 pm (Eastern Time) on May 14th, 2014, until 11:59 pm (Eastern Time) on May 28th, 2014.

Elgin Mining Inc.

Elgin Mining is a Canadian based company focused on production at the Bjorkdal gold mine in Sweden. In addition, Elgin Mining's portfolio includes the Lupin and Ulu gold projects located in Nunavut, Canada.

Cautionary Note Regarding Forward-Looking Information

This news release contains "forward-looking information" within the meaning of Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Except for statements of historical fact relating to the Company, information contained herein constitutes forward-looking statements, including any information as to the Company's strategy, plans or future financial or operating performance. Forward-looking statements are characterized by words such as "plan," "expect", "budget", "target", "project", "intend," "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking statements.

These factors include risks relating to variations in the mineral content within the material identified as mineral reserves and mineral resources from that predicted, changes in development or mining plans due to changes in logistical, technical or other factors, the impact of general business and economic conditions, global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future conditions, fluctuating metal prices and currency exchange rates, possible variations in ore grade or recovery rates, changes in accounting policies, changes in the Company's corporate resources, changes in project parameters as plans continue to be refined, changes in project development and production time frames, the possibility of project cost overruns or unanticipated costs and expenses, higher prices for fuel, steel, power, labour and other consumables contributing to higher costs and general risks of the mining industry, failure of plant, equipment or processes to operate as anticipated, unexpected changes in mine life, unanticipated results of future studies, seasonality and unanticipated weather changes, costs and timing of the development of new deposits, success of exploration activities, successful completion of proposed acquisitions, permitting time lines, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims, limitations on insurance coverage and timing and possible outcome of pending litigation and labour disputes as well as those risk factors discussed or referred to in the Company's Annual Information Form dated March 21, 2014, a copy of which is filed on SEDAR at Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended.

There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates, assumptions or opinions should change, except as required by applicable law. The reader is cautioned not to place undue reliance on forward-looking statements. The forward-looking information contained herein is presented for the purpose of assisting investors in understanding the exploration and development plans and objectives and may not be appropriate for other purposes.

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
Container technology is shaping the future of DevOps and it’s also changing the way organizations think about application development. With the rise of mobile applications in the enterprise, businesses are abandoning year-long development cycles and embracing technologies that enable rapid development and continuous deployment of apps. In his session at DevOps Summit, Kurt Collins, Developer Evangelist at, examined how Docker has evolved into a highly effective tool for application del...
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical...
Internet of @ThingsExpo, taking place June 7-9, 2016 at Javits Center, New York City and Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 18th International @CloudExpo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo New York Call for Papers is now open.
The cloud. Like a comic book superhero, there seems to be no problem it can’t fix or cost it can’t slash. Yet making the transition is not always easy and production environments are still largely on premise. Taking some practical and sensible steps to reduce risk can also help provide a basis for a successful cloud transition. A plethora of surveys from the likes of IDG and Gartner show that more than 70 percent of enterprises have deployed at least one or more cloud application or workload. Y...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty ...
We are rapidly moving to a brave new world of interconnected smart homes, cars, offices and factories known as the Internet of Things (IoT). Sensors and monitoring devices will touch every part of our lives. Let's take a closer look at the Internet of Things. The Internet of Things is a worldwide network of objects and devices connected to the Internet. They are electronics, sensors, software and more. These objects connect to the Internet and can be controlled remotely via apps and programs. ...
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi’s VP Business Development and Engineering, explored the IoT cloud-based platform technologies driving t...
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
We all know that data growth is exploding and storage budgets are shrinking. Instead of showing you charts on about how much data there is, in his General Session at 17th Cloud Expo, Scott Cleland, Senior Director of Product Marketing at HGST, showed how to capture all of your data in one place. After you have your data under control, you can then analyze it in one place, saving time and resources.
As organizations shift towards IT-as-a-service models, the need for managing & protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection & E-Discovery of your data - whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise.
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data...
In recent years, at least 40% of companies using cloud applications have experienced data loss. One of the best prevention against cloud data loss is backing up your cloud data. In his General Session at 17th Cloud Expo, Sam McIntyre, Partner Enablement Specialist at eFolder, presented how organizations can use eFolder Cloudfinder to automate backups of cloud application data. He also demonstrated how easy it is to search and restore cloud application data using Cloudfinder.
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, rich desktop and tuned mobile experiences can now be created with a single codebase – without compromising functionality, performance or usability. In his session at DevOps Su...
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...