ALBUQUERQUE, N.M.--(BUSINESS WIRE)-- February 9, 2012 - Santa Fe Gold Corporation (OTCBB: SFEG.OB - News) is pleased to announce the financial results for its 2012 fiscal first half ending December 31, 2011.
Continued Growth in Revenue
Santa Fe recorded revenue of $4,469,219 for its 2012 fiscal first half ended December 31, 2011, up 257% from revenue of $1,250,262 in the corresponding first half of fiscal 2011. The increase of $3,218,957 is due to increased production at the Summit mine and related shipments of precious metals concentrate, flux material and the sale of refined gold. Full financial results are available in the Company's Form 10-Q filed with the SEC and available at www.sec.gov.
"We continue to increase production at our Summit silver-gold mine in New Mexico and are closer to our target of commercial production, which we expect to achieve during the current quarter," said Pierce Carson, CEO of Santa Fe. "With higher production and continued strength in gold and silver prices, we are optimistic that we will see even stronger operating results in the coming quarters."
ColumbusSilver Acquisition
Santa Fe continues to make progress on its pending acquisition of Columbus Silver Corporation (TSXV: CSC.V - News) pursuant to which Santa Fe will conditionally acquire Columbus Silver for cash. The company expects the transaction to be concluded in March or April 2012.
About Santa Fe Gold:
Santa Fe Gold is a U.S.-based mining and exploration enterprise focused on acquiring and developing gold, silver, copper and industrial mineral properties. Santa Fe controls: (i) the Summit mine and Lordsburg mill in southwestern New Mexico, which began processing operations in 2010; (ii) a substantial land position near the Lordsburg mill, comprising the core of the Lordsburg Mining District; (iii) the Ortiz gold property in north-central New Mexico; (iv) the Black Canyon mica deposit and processing equipment near Phoenix, Arizona; and (v) a deposit of micaceous iron oxide (MIO) in western Arizona. Santa Fe Gold intends to build a portfolio of high-quality, diversified mineral assets with an emphasis on precious metals.
To learn more about Santa Fe Gold, visit www.santafegoldcorp.com.
Cautionary Note Regarding Forward-Looking Statements:
This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable US and Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, variations in the market price of any mineral products the Company may produce or plan to produce, the Company's inability to obtain any necessary permits, consents or authorizations required for its activities, the Company's inability to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies, and other risks and uncertainties disclosed in the Company's Annual Report on Form 10-K for the year ended June 30, 2011 and its most recent quarterly reports filed with the United States Securities and Exchange Commission (the "SEC"), and other information released by the Company and filed with the appropriate regulatory agencies. All of the Company's US public disclosure filings may be accessed via www.sec.gov and its Canadian public disclosure filings may be accessed via www.sedar.com, and readers are urged to review these materials.
The following information summarizes the financial condition of Santa Fe Gold Corporation at December 31, 2011, including its balance sheets at December 31, 2011 and June 30, 2011, respectively, its results of operations for the three months and six months ended December 31, 2011 and 2010, respectively, and its cash flows for the six months ended December 31, 2011 and 2010. The summary data for the three and six months ended December 31, 2011 and 2010, respectively, are unaudited; the summary data for the financial year ended June 30, 2011 are taken from our audited financial statements contained in our annual report on Form 10-K for the financial year ended June 30, 2011, but do not include the footnotes and other information that is included in the complete financial statements. Readers are urged to review the Company's Form 10-K in its entirety, which can be found on the SEC's website at www.sec.gov.
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SANTA FE GOLD CORPORATION |
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CONSOLIDATED BALANCE SHEETS |
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December 31, |
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June 30, |
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ASSETS |
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2011 |
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2011 |
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(Unaudited) |
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CURRENT ASSETS: |
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|
|
|
|
|
|
Cash and cash equivalents |
|
|
$ |
3,480,057 |
|
|
|
$ |
172,531 |
|
|
Accounts receivable |
|
|
|
1,769,830 |
|
|
|
|
2,230,605 |
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Inventory |
|
|
|
109,212 |
|
|
|
|
175,578 |
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Marketable securities |
|
|
|
176,241 |
|
|
|
|
97,260 |
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|
Prepaid expenses and other current assets |
|
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|
801,287 |
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|
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|
279,064 |
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Note receivable and accrued interest |
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207,511 |
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- |
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Total Current Assets |
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6,544,138 |
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2,955,038 |
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MINERAL PROPERTIES |
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579,000 |
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579,000 |
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PROPERTY, PLANT AND EQUIPMENT, |
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net of depreciation of $4,326,478 and $3,090,516, respectively |
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12,409,643 |
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|
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13,104,215 |
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OTHER ASSETS: |
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Construction in process |
|
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|
11,096,009 |
|
|
|
|
8,427,113 |
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Idle equipment, net |
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1,223,528 |
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|
|
|
1,223,528 |
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Note receivable and accrued interest |
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- |
|
|
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|
203,422 |
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Restricted cash |
|
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|
231,716 |
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|
|
|
410,374 |
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Deferred financing costs |
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|
504,387 |
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|
314,700 |
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Total Other Assets |
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13,055,640 |
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|
|
|
10,579,137 |
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Total Assets |
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$ |
32,588,421 |
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|
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$ |
27,217,390 |
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LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) |
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CURRENT LIABILITIES: |
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Accounts payable |
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$ |
1,054,548 |
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|
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$ |
1,090,907 |
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Accrued liabilities |
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1,450,826 |
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|
|
|
1,976,751 |
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Derivative instrument liabilities |
|
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4,797,174 |
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|
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8,973,066 |
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Current portion, notes payable, net of discount of $440,766 and $-0-, respectively |
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4,030,024 |
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78,384 |
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Current portion, capital leases |
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40,276 |
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|
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|
83,856 |
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Senior subordinated convertible notes payable, net of discount of $12,819 and $-0-, respectively |
|
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|
437,181 |
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|
- |
|
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Deferred revenue |
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3,159,612 |
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|
|
|
3,611,266 |
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Accrued interest payable |
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|
395,628 |
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|
|
|
255,109 |
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Total Current Liabilities |
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15,365,269 |
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16,069,339 |
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LONG TERM LIABILITIES: |
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Notes payable, net discount of $125,135 and $-0-, respectively |
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5,543,045 |
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58,957 |
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Capital leases, net of current portion |
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24,622 |
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45,057 |
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Senior secured convertible notes payable, net of discount of $-0- and $2,498,065, respectively |
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- |
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11,001,935 |
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Senior subordinated convertible notes payable, net of discount of $-0- and $19,684, respectively |
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- |
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430,316 |
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Asset retirement obligation |
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155,363 |
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|
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149,236 |
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Total Liabilities |
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21,088,299 |
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27,754,840 |
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STOCKHOLDERS' EQUITY (DEFICIT): |
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Common stock, $.002 par value, 300,000,000 shares authorized; 108,294,412 and 94,744,412 shares issued and outstanding, respectively; Includes non-vested shares of 237,500 and 575,000, respectively |
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215,441 |
|
|
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|
188,341 |
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Additional paid in capital |
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72,764,515 |
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|
|
|
59,021,550 |
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Accumulated (deficit) |
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|
(61,558,017 |
) |
|
|
|
(59,746,543 |
) |
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Accumulated other comprehensive income (loss) |
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|
78,183 |
|
|
|
|
(798 |
) |
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Total Stockholders' Equity (Deficit) |
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|
11,500,122 |
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|
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(537,450 |
) |
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$ |
32,588,421 |
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|
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$ |
27,217,390 |
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SANTA FE GOLD CORPORATION |
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CONSOLIDATED STATEMENTS OF OPERATIONS |
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AND COMPREHENSIVE (LOSS) |
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(Unaudited) |
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Three Months Ended |
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Six Months Ended |
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December 31, |
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December 31, |
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2011 |
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2010 |
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2011 |
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2010 |
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SALES |
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$ |
1,918,495 |
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$ |
473,440 |
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$ |
4,469,219 |
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$ |
1,250,262 |
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OPERATING COSTS AND EXPENSES: |
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Costs applicable to sales |
|
|
|
1,032,488 |
|
|
|
304,335 |
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|
|
|
2,652,978 |
|
|
|
699,422 |
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|
Exploration, mine and mill start up costs |
|
|
|
713,067 |
|
|
|
682,378 |
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|
|
|
1,242,021 |
|
|
|
1,072,397 |
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General and administrative |
|
|
|
920,470 |
|
|
|
726,456 |
|
|
|
|
1,692,160 |
|
|
|
1,491,540 |
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Depreciation and amortization |
|
|
|
658,312 |
|
|
|
575,844 |
|
|
|
|
1,316,719 |
|
|
|
1,148,001 |
|
|
Accretion of asset retirement obligation |
|
|
|
4,000 |
|
|
|
- |
|
|
|
|
6,127 |
|
|
|
- |
|
|
|
|
|
|
3,328,337 |
|
|
|
2,289,013 |
|
|
|
|
6,910,005 |
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|
|
4,411,360 |
|
|
|
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|
|
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|
LOSS FROM OPERATIONS |
|
|
|
(1,409,842 |
) |
|
|
(1,815,573 |
) |
|
|
|
(2,440,786 |
) |
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|
(3,161,098 |
) |
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OTHER INCOME (EXPENSE): |
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|
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|
|
|
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(Loss) on disposal of assets |
|
|
|
- |
|
|
|
- |
|
|
|
|
(152,587 |
) |
|
|
- |
|
|
Interest income |
|
|
|
2,336 |
|
|
|
1,930 |
|
|
|
|
5,085 |
|
|
|
6,438 |
|
|
Miscellaneous income(loss) |
|
|
|
5,328 |
|
|
|
(1,166 |
) |
|
|
|
5,328 |
|
|
|
(2,471 |
) |
|
Gain (loss) on derivative instrument liabilities |
|
|
|
(89,636 |
) |
|
|
(3,197,189 |
) |
|
|
|
2,798,124 |
|
|
|
(5,324,562 |
) |
|
Accretion of discounts on notes payable |
|
|
|
(784,839 |
) |
|
|
(312,793 |
) |
|
|
|
(1,338,685 |
) |
|
|
(609,157 |
) |
|
Interest expense |
|
|
|
(376,109 |
) |
|
|
(185,687 |
) |
|
|
|
(687,953 |
) |
|
|
(371,334 |
) |
|
|
|
|
|
(1,242,920 |
) |
|
|
(3,694,905 |
) |
|
|
|
629,312 |
|
|
|
(6,301,086 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
(LOSS) BEFORE PROVISION FOR INCOME TAXES |
|
|
|
(2,652,762 |
) |
|
|
(5,510,478 |
) |
|
|
|
(1,811,474 |
) |
|
|
(9,462,184 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION FOR INCOME TAXES |
|
|
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS |
|
|
|
(2,652,762 |
) |
|
|
(5,510,478 |
) |
|
|
|
(1,811,474 |
) |
|
|
(9,462,184 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE INCOME |
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain on marketable securities |
|
|
|
47,002 |
|
|
|
91,942 |
|
|
|
|
78,981 |
|
|
|
91,942 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET COMPREHENSIVE LOSS |
|
|
$ |
(2,605,760 |
) |
|
$ |
(5,418,536 |
) |
|
|
$ |
(1,732,493 |
) |
|
$ |
(9,370,242 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted Per Share data |
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) - basic and diluted |
|
|
$ |
(0.03 |
) |
|
$ |
(0.06 |
) |
|
|
$ |
(0.02 |
) |
|
$ |
(0.10 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares Outstanding: |
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
|
95,877,564 |
|
|
|
92,433,783 |
|
|
|
|
95,217,238 |
|
|
|
92,364,720 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SANTA FE GOLD CORPORATION |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
|
December 31, |
|
|
|
|
2011 |
|
|
2010 |
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
Net loss |
|
|
$ |
(1,811,474 |
) |
|
|
$ |
(9,462,184 |
) |
|
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
Depreciation |
|
|
|
1,316,719 |
|
|
|
|
1,148,001 |
|
|
Stock-based compensation |
|
|
|
337,641 |
|
|
|
|
686,294 |
|
|
Accretion of discount on notes payable |
|
|
|
1,338,686 |
|
|
|
|
609,157 |
|
|
Accretion of asset retirement obligation |
|
|
|
6,127 |
|
|
|
|
- |
|
|
(Gain) loss on derivative instrument liabilities |
|
|
|
(2,798,124 |
) |
|
|
|
5,324,562 |
|
|
Loss on disposal of assets |
|
|
|
152,587 |
|
|
|
|
- |
|
|
Amortization of deferred financing costs |
|
|
|
335,312 |
|
|
|
|
49,159 |
|
|
Net change in operating assets and liabilities: |
|
|
|
|
|
|
|
Accounts receivable |
|
|
|
460,775 |
|
|
|
|
(657,178 |
) |
|
Inventory |
|
|
|
66,366 |
|
|
|
|
- |
|
|
Prepaid expenses and other current assets |
|
|
|
(522,223 |
) |
|
|
|
33,472 |
|
|
Accounts payable and accrued liabilities |
|
|
|
(562,284 |
) |
|
|
|
69,604 |
|
|
Deferred revenue |
|
|
|
(451,654 |
) |
|
|
|
(117,137 |
) |
|
Accrued interest payable |
|
|
|
140,519 |
|
|
|
|
(9,680 |
) |
|
Net Cash Used in Operating Activities |
|
|
|
(1,991,027 |
) |
|
|
|
(2,325,930 |
) |
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
Decrease to restricted cash |
|
|
|
178,658 |
|
|
|
|
- |
|
|
Proceeds from disposal of assets |
|
|
|
25,000 |
|
|
|
|
- |
|
|
Purchase of marketable securities |
|
|
|
- |
|
|
|
|
(98,058 |
) |
|
Notes receivable and accrued interest |
|
|
|
(4,089 |
) |
|
|
|
- |
|
|
Purchase of property, plant and equipment |
|
|
|
(799,734 |
) |
|
|
|
(459,345 |
) |
|
Construction in progress |
|
|
|
(2,668,896 |
) |
|
|
|
(1,758,614 |
) |
|
Net Cash Used in Investing Activities |
|
|
|
(3,269,061 |
) |
|
|
|
(2,316,017 |
) |
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
Proceeds from issuance of stock |
|
|
|
- |
|
|
|
|
2,000,001 |
|
|
Proceeds from notes payable |
|
|
|
15,105,119 |
|
|
|
|
77,306 |
|
|
Payments on notes payable |
|
|
|
(5,103,490 |
) |
|
|
|
(139,634 |
) |
|
Payments on capital leases |
|
|
|
(64,015 |
) |
|
|
|
(68,207 |
) |
|
Payment of financing costs |
|
|
|
(1,370,000 |
) |
|
|
|
(136,000 |
) |
|
Net Cash Provided by Financing Activities |
|
|
|
8,567,614 |
|
|
|
|
1,733,466 |
|
|
|
|
|
|
|
|
|
|
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
|
|
|
3,307,526 |
|
|
|
|
(2,908,481 |
) |
|
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
|
|
|
172,531 |
|
|
|
|
5,540,130 |
|
|
CASH AND CASH EQUIVALENTS, END OF PERIOD |
|
|
$ |
3,480,057 |
|
|
|
$ |
2,631,649 |
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL CASH FLOW INFORMATION: |
|
|
|
|
|
|
|
Cash paid for interest |
|
|
$ |
675,039 |
|
|
|
$ |
529,873 |
|
|
Cash paid for income taxes |
|
|
$ |
- |
|
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND |
|
|
|
|
FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
Stock issued for services |
|
|
$ |
- |
|
|
|
$ |
6,750 |
|
|
Issuance of common stock for conversion of convertible notes payable |
|
|
$ |
13,432,424 |
|
|
|
$ |
- |
|
Contact:
Santa Fe Gold Corporation
W. Pierce Carson
President and Chief Executive Officer
505-255-4852
|
|
DISCLAIMER
This publication is an advertisement and/or a company update on behalf of Santa Fe Gold Corporation and may not be construed as investment advice. This is not a solicitation to buy or sell securities and this does not purport to be a complete analysis of the company mentioned. Investing in securities is speculative and carries a high degree of risk. Past performance does not guarantee future results. Readers should consult with their own independent tax, business and financial advisers with respect to any investment, including any contemplated investment in the advertised company. All information contained in this advertisement should be independently verified with the advertised company and by an independent financial analyst. You should independently investigate and fully understand all risks before investing. This email was prepared for and by Santa Fe Gold Corporation staff. The information set forth herein was obtained from sources believed to be reliable, but there no guarantee to its accuracy or completeness. For further information on Santa Fe Gold Corporation, please contact R.J. Bommarito, director of shareholder communications at rjbommarito@santafegoldcorp.com. Current stock price and trading volume information is available from your broker and from online information services such as America Online, Yahoo and Bloomberg. All projections, estimates, compilations of future earnings and/or market share represent the best estimate by management of the advertised company of the expected future growth of Santa Fe Gold Corporation and/or the industry as a whole. While management of Santa Fe Gold Corporation believe all facts and figures are accurate, no assurances can be given that any of the projected figures will be attained. This publication contains forward-looking statements as defined in the Securities Litigation Improvements Act of 1996. The words "believe, expect, estimate and project" and similar expressions define forward-looking statements, which speak only as of the date the statement was made. Santa Fe Gold Corporation undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise. Forward-looking statements are currently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated in, or underlie the forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, the company's ability to meet its projected growth, the effects of government regulation, competition and other material risks. | |