Welcome!

News Feed Item

Roxgold Reports Financial Results For Second Quarter 2014

TORONTO, Aug. 26, 2014 /PRNewswire/ - Roxgold Inc. ("Roxgold" or "the Company") (TSXV: ROG) today reported its financial results for the three and six-month periods ended June 30, 2014.  For complete details of the unaudited Condensed Interim Consolidated Financial Statements and associated Management's Discussion and Analysis for the three and six-month periods ended June 30, 2014, please see the Company's filings on SEDAR (www.sedar.com) or the Company's website (www.roxgold.com).

SECOND QUARTER 2014 HIGHLIGHTS

  • On April 22, 2014, the Company announced the results of its feasibility study for the Yaramoko Gold Project (the "Feasibility Study");
  • Continued exploration on the prospective Bagassi South Zone with expenditures on the Yaramoko exploration property totalling $6,997,000, for the quarter ended June 30, 2014;
  • On June 26, 2014, Roxgold announced that following a competitive selection process, it had executed a US$75 million project finance mandate with Société Générale Corporate & Investment Banking and Credit Suisse AG;
  • At June 30, 2014, the Company had $29,943,000 in cash and cash equivalents; and
  • Net loss for the quarter ended June 30, 2014 amounted to $1,968,000.

A.    Feasibility Study

On April 22, 2014, Roxgold announced the results of its Feasibility Study for the Yaramoko Gold Project.  The study envisions an underground mining scenario with a mine life of over seven years. The Feasibility Study also outlined:



IRR

-      Pre-tax IRR  of 53.7% with a 1.5 year payback on initial capital
-      After-tax IRR of 48.4% with a 1.6 year payback on initial capital

NPV

-      Pre-tax NPV5% of US$300 million
-      After-tax NPV5% of US$250 million 

Production
Costs1

-      Average Total Cash Costs of US$467/oz (including royalties)
-      Average All-in Sustaining Costs of US$590/oz 

Capex

-      Pre-Production capital of US$106.5 million

Production

-      Estimated average annual gold production of 99,500 ounces

Mine Life

-      Current study mine life of 7.4 years

Probable Mineral
Reserves

-      1.996Mt @ 11.8 g/t Au containing 759,000 ounces Au

Recoveries

-      Average metallurgical recoveries of 96.9% gold

1 Production costs are presented in accordance with World Gold Council standards and are a non-IFRS financial performance measure with no standard definition under IFRS.

 

The economic parameters presented above are based upon 100% ownership of the Yaramoko gold project. Under the Mining Code of Burkina Faso, the Government of Burkina Faso is entitled to a 10% interest in the project upon formal award of an exploitation permit. On a 90% basis, the After-tax NPV5% of the Company's interest in the project is US$232 million under the base case scenario. The Government of Burkina Faso is estimated to receive an undiscounted US$143 million from Yaramoko in the form of dividends, taxes, VAT, duties and levies.

The key assumptions utilized were a gold price of US$1,300 per ounce sold, a diesel price of US$1.58 per litre delivered to site as well as an electricity tariff of US$0.171 per kWhr and a royalty rate of 5%.

On June 4, 2014, the full 43-101 Feasibility Study Technical Report was filed on SEDAR, and posted on the Company's website.

More information on the Feasibility Study can be found in the April 22, 2014 news release available on SEDAR at www.sedar.com and on the Company's website at www.roxgold.com.

B.         Regional Exploration Update

On May 6, 2014, Roxgold announced the latest results from its regional exploration program at Yaramoko's prospective Bagassi South Zone.

Highlights from the diamond drilling program at Bagassi South's QV1 target included:

  • 226.76 grams per tonne ("gpt") gold over 3.1 metres (2.7 metres true width) including 442.00 gpt gold over 1.6 metres (1.4 metres true width) in diamond drill hole YRM-14-BG-041;
  • 3.04 gpt gold over 5.0 metres (3.2 metres true width) including 11.30 gpt gold over 0.6 metres (0.3 metres true width) in diamond drill hole YRM-14-BG-043 as well as an additional intercept of 3.04 gpt gold over 3.8 metres (2.4 metres true width); and
  • 2.44 gpt gold over 1.7 metres (1.5 metres true width) including 6.56 gpt gold over 0.6 metres (0.5 metres true width) in diamond drill hole YRM-14KD-BG-023, located 200 metres west along strike from QV1.

For more information please refer to the Company's news release dated May 6, 2014.

C.         Expansion of the Yaramoko Permit

On May 8, 2014, the Burkina Faso Ministry of Mines issued a permit expansion enlarging the total permit area from 167 km2 to 196 km2

D.         Annual General Meeting

On May 27, 2014, the Company held its Annual General Meeting in Toronto.  Shareholders voted to re-elect the Company's eight member Board of Directors ("The Board") as well as to approve the Shareholder Rights Plan ("the Rights Plan") with 69.60% of shares outstanding represented at the meeting. The Rights Plan is intended to ensure that in the event of an unsolicited take-over bid for the common shares of the Company, all holders of common shares of the Company and the Board have adequate time to consider and evaluate any such take-over bid, the Board has adequate time to identify, solicit, develop and negotiate value-enhancing alternatives, as considered appropriate, to any such take-over bid and the Company's shareholders are treated fairly in connection with any such take-over bid. The Rights Plan is not intended to prevent a change of control of the Company to the detriment of shareholders.

In addition, Roxgold shareholders also voted in favour of ratifying and approving:

  • PricewaterhouseCoopers LLP as the Company's auditors;
  • Renewing the Company's rolling stock option plan (the "Option Plan") whereby the Company is authorized to grant stock options of up to 10% of its issued and outstanding shares, from time to time;
  • Amendments to the Company's deferred share unit plan; and
  • Amendments to the Company's restricted share unit plan.

E.         Project Financing Mandate

On June 26, 2014, Roxgold announced that following a competitive selection process, it had executed a project finance mandate with Société Générale Corporate & Investment Banking ("Société Générale") and Credit Suisse AG ("Credit Suisse"), (collectively the "Banks"). The mandate sets forth a US$75 million senior project debt facility (the "Facility") with a targeted financial close in the fourth quarter of 2014. Closure of the Facility is subject to customary internal approvals and completion of due diligence. The Facility is expected to encompass a hedging component of approximately 8.5% of Yaramoko's current reserves.

EVENTS SUBSEQUENT TO JUNE 30, 2014

On August 18, 2014, the Burkina Faso Ministry of Environment and Sustainable Development approved the Environmental and Social Impact Assessment ("ESIA") for the Yaramoko Gold Project.  This marked a key milestone in the permitting process, for which the Company had completed public consultations and crop compensation agreements.

NEAR TERM CORPORATE OBJECTIVES

The Company will continue to advance its Yaramoko gold project throughout 2014 in line with its development goals for this year.  In the near term, planned activities at the Yaramoko project include:

  • Completing detailed engineering during the third quarter;
  • Finalizing permitting, which is expected during the fourth quarter;
  • Finalizing project financing, which is expected during the second half of the year;
  • Formal commencement of development stage activities; and
  • Initiating early stage construction works to preserve the timeline to production.

In addition, the Company continues to explore on its 196 km2 permit where it has identified priority drill targets that will continue to be tested during the remainder of the year. Most notably these include the QV1 target at Bagassi South where recent drilling has returned high grade results.

QUALIFIED PERSON

Ben Pullinger, P.Geo, Vice President of Exploration for Roxgold Inc., a Qualified Person within the meaning of National Instrument 43-101, has verified and approved the technical data disclosed in the press releases included herein by reference. This includes the sampling, analytical and test data underlying the information.

ABOUT ROXGOLD

Roxgold is a gold exploration and development company with its key asset, the high grade, 100% owned Yaramoko Gold Project located in the Houndé greenstone region of Burkina Faso, West Africa. The Company is currently advancing Yaramoko's 55 Zone through permitting and, subject to making a positive construction decision, expects to commence development in Q4 2014. Roxgold trades on the TSX Venture Exchange under the symbol ROG.

ON BEHALF OF ROXGOLD INC.

"Natacha Garoute"
Chief Financial Officer and Corporate Secretary

"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

This news release contains forward-looking information. Forward looking information contained in this new release includes, but is not limited to, statements with respect to: (i) the estimation of inferred and indicated mineral resources and probable mineral reserves; (ii) the success of exploration activities; (iii) the completion and timing of the environmental assessment process (iv) the results of the Feasibility Study including statements about future production, future operating and capital costs, the projected IRR, NPV, payback period, and production timelines for the 55 Zone on the Yaramoko permit.

These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. In certain cases, forward-looking information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Forward-looking information contained in this news release is based on certain factors and assumptions regarding, among other things, the estimation of mineral resources and mineral reserves, the realization of resource estimates and reserve estimates, gold metal prices, the timing and amount of future exploration and development expenditures, the estimation of initial and sustaining capital requirements, the estimation of labour and operating costs, the availability of necessary financing and materials to continue to explore and develop the Yaramoko project in the short and long-term, the progress of exploration and development activities, the receipt of necessary regulatory approvals, the completion of the environmental assessment process, and assumptions with respect to currency fluctuations, environmental risks, title disputes or claims, and other similar matters. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include risks inherent in the exploration and development of mineral deposits, including risks relating to changes in project parameters as plans continue to be redefined including the possibility that mining operations may not commence at the Yaramoko project, risks relating to variations in mineral resources and mineral reserves, grade or recovery rates resulting from current exploration and development activities, risks relating to changes in gold prices and the worldwide demand for and supply of gold, risks related to increased competition in the mining industry generally, risks related to current global financial conditions, uncertainties inherent in the estimation of mineral resources and mineral reserves, access and supply risks, reliance on key personnel, operational risks inherent in the conduct of mining activities, including the risk of accidents, labour disputes, increases in capital and operating costs and the risk of delays or increased costs that might be encountered during the development process, regulatory risks, including risks relating to the acquisition of the necessary licenses and permits, financing, capitalization and liquidity risks, including the risk that the financing necessary to fund the exploration and development activities at the Yaramoko project may not be available on satisfactory terms, or at all, risks related to disputes concerning property titles and interest, and environmental risks. Please refer to the Company's Short Form Prospectus dated March 17, 2014 filed on SEDAR at www.sedar.com for political, environmental or other risks that could materially affect the development of mineral resources and mineral reserves.  This list is not exhaustive of the factors that may affect any of the Company's forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking information. The Company does not undertake to update any forward-looking information that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.

SOURCE Roxgold Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
The digital transformation is real! To adapt, IT professionals need to transform their own skillset to become more multi-dimensional by gaining both depth and breadth of a wide variety of knowledge and competencies. Historically, while IT has been built on a foundation of specialty (or "I" shaped) silos, the DevOps principle of "shifting left" is opening up opportunities for developers, operational staff, security and others to grow their skills portfolio, advance their careers and become "T"-sh...
This session will provide an introduction to Cloud driven quality and transformation and highlight the key features that comprise it. A perspective on the cloud transformation lifecycle, transformation levers, and transformation framework will be shared. At Cognizant, we have developed a transformation strategy to enable the migration of business critical workloads to cloud environments. The strategy encompasses a set of transformation levers across the cloud transformation lifecycle to enhance ...
Authorization of web applications developed in the cloud is a fundamental problem for security, yet companies often build solutions from scratch, which is error prone and impedes time to market. This talk shows developers how they can (instead) build on-top of community-owned projects and frameworks for better security.Whether you build software for enterprises, mobile, or internal microservices, security is important. Standards like SAML, OIDC, and SPIFFE help you solve identity and authenticat...
Lori MacVittie is a subject matter expert on emerging technology responsible for outbound evangelism across F5's entire product suite. MacVittie has extensive development and technical architecture experience in both high-tech and enterprise organizations, in addition to network and systems administration expertise. Prior to joining F5, MacVittie was an award-winning technology editor at Network Computing Magazine where she evaluated and tested application-focused technologies including app secu...
Mike is managing director in Deloitte Consulting LLP's Cloud practice, responsible for helping clients implement cloud strategy and architecture to drive digital transformation. Beyond his technology experience, Mike brings an insightful understanding of how to address the organizational change, process improvement, and talent management challenges associated with digital transformation. Mike brings more than 30 years of experience in software development and architecture to his role. Most recen...
Having been in the web hosting industry since 2002, dhosting has gained a great deal of experience while working on a wide range of projects. This experience has enabled the company to develop our amazing new product, which they are now excited to present! Among dHosting's greatest achievements, they can include the development of their own hosting panel, the building of their fully redundant server system, and the creation of dhHosting's unique product, Dynamic Edge.
Your job is mostly boring. Many of the IT operations tasks you perform on a day-to-day basis are repetitive and dull. Utilizing automation can improve your work life, automating away the drudgery and embracing the passion for technology that got you started in the first place. In this presentation, I'll talk about what automation is, and how to approach implementing it in the context of IT Operations. Ned will discuss keys to success in the long term and include practical real-world examples. Ge...
The challenges of aggregating data from consumer-oriented devices, such as wearable technologies and smart thermostats, are fairly well-understood. However, there are a new set of challenges for IoT devices that generate megabytes or gigabytes of data per second. Certainly, the infrastructure will have to change, as those volumes of data will likely overwhelm the available bandwidth for aggregating the data into a central repository. Ochandarena discusses a whole new way to think about your next...
DXWorldEXPO LLC announced today that Big Data Federation to Exhibit at the 22nd International CloudEXPO, colocated with DevOpsSUMMIT and DXWorldEXPO, November 12-13, 2018 in New York City. Big Data Federation, Inc. develops and applies artificial intelligence to predict financial and economic events that matter. The company uncovers patterns and precise drivers of performance and outcomes with the aid of machine-learning algorithms, big data, and fundamental analysis. Their products are deployed...
Dynatrace is an application performance management software company with products for the information technology departments and digital business owners of medium and large businesses. Building the Future of Monitoring with Artificial Intelligence. Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more busine...
All in Mobile is a place where we continually maximize their impact by fostering understanding, empathy, insights, creativity and joy. They believe that a truly useful and desirable mobile app doesn't need the brightest idea or the most advanced technology. A great product begins with understanding people. It's easy to think that customers will love your app, but can you justify it? They make sure your final app is something that users truly want and need. The only way to do this is by ...
CloudEXPO New York 2018, colocated with DevOpsSUMMIT and DXWorldEXPO New York 2018 will be held November 12-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI and Machine Learning to one location.
CloudEXPO | DevOpsSUMMIT | DXWorldEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
Whenever a new technology hits the high points of hype, everyone starts talking about it like it will solve all their business problems. Blockchain is one of those technologies. According to Gartner's latest report on the hype cycle of emerging technologies, blockchain has just passed the peak of their hype cycle curve. If you read the news articles about it, one would think it has taken over the technology world. No disruptive technology is without its challenges and potential impediments t...
DXWorldEXPO LLC announced today that Nutanix has been named "Platinum Sponsor" of CloudEXPO | DevOpsSUMMIT | DXWorldEXPO New York, which will take place November 12-13, 2018 in New York City. Nutanix makes infrastructure invisible, elevating IT to focus on the applications and services that power their business. The Nutanix Enterprise Cloud Platform blends web-scale engineering and consumer-grade design to natively converge server, storage, virtualization and networking into a resilient, softwar...