TSX.V: GBN | OTCQX: GBRIF
SASKATOON, March 28, 2014 /CNW/ - Golden Band Resources Inc. ("Golden Band" or the "Company") (TSXV: GBN) today reported results for the third quarter 2014.
The Company incurred a net loss before income tax of $15,630,989 in Q3 2014 compared to a loss before income tax of $9,643,181 in Q3 2013. The increase in the net loss from Q3 2013 to Q3 2014 is mainly due to the decline in gold sale price and the lower grade of the produced gold.
A summary of financial results is presented below. All dollar amounts presented are Canadian dollars, unless otherwise specified.
SUMMARY QUARTERLY INFORMATION
| CDN $ |
Q3 2014 |
Q2 2014 |
Q1 2014 |
Q4 2013 |
Q3 2013 |
Q2 2013 |
Q1 2013 |
Q4 2012 |
| Gold ounces sold |
5,000 |
800 |
- |
3,532 |
3,882 |
7,920 |
7,929 |
8,872 |
| Revenues ($000's) |
$6,683 |
$1,064 |
- |
$5,726 |
$6,460 |
$12,746 |
$12,733 |
$14,966 |
Cash cost of sales
($000's) |
$15,329 |
$4,572 |
$1,801* |
$10,476 |
$10,975 |
$12,509 |
$11,026 |
$14,269 |
| Net loss ($000's) |
(15,631) |
$(7,654) |
$(4,242) |
$(13,136) |
$(7,381) |
$(2,754) |
$(3,580) |
$(5,327) |
| Net loss per share 1 |
$(0.05) |
$(0.03) |
$(0.01) |
$(0.04) |
$(0.03) |
$(0.01) |
$(0.01) |
$(0.02) |
Cash from (used in)
operations ($000's) |
$2,003 |
$7,340 |
$(8,080) |
$2,013 |
$1,418 |
$(1,460) |
$165 |
$6,075 |
Total cash costs per
ounce of gold sold 3 |
$4,340 |
$5,715 |
- |
$2,966 |
$2,827 |
$1,579 |
$1,391 |
$1,608 |
Average realized
gold price/ounce |
$1,333 |
$1,331 |
- |
$1,612 |
$1,656 |
$1,601 |
$1,599 |
$1,676
|
| |
|
| 1. |
All per share amounts are calculated on a weighted average, basic and fully diluted basis. |
| 2. |
Per share amount is negligible and has been recorded as nil. |
| 3. |
This is a non-IFRS measure. See section regarding non-IFRS measures below. |
| * |
Represents operating costs and the excess of cost of broken ore over net realizable value, which was written down. |
During Q3 2014, the Company produced 3,759 gold ounces compared to 3,767 gold ounces in Q3 2013.
During Q3 2014, the Company sold 5,000 ounces of gold at an average realized price of $1,333 per ounce and generated $6,682,820 in revenue. In Q3 2013 the Company sold 3,882 gold ounces at an average realized gold price of $1,656 per ounce and generated $6,430,023 of gold revenue.
2014 THIRD QUARTER HIGHLIGHTS
- Underground operations at Roy Lloyd mined and had milled a combined total (high and low grade) of 11,445.7 tonnes of ore at an average grade of 5.58 g/t gold.
- Continued strong safety performance. No reportable lost time accidents were incurred.
- No reportable environmental spills.
- The Company produced 5,597.9 gold ounces during three months ended January 31, 2014.
- The declining gold prices over the reporting period and lower than anticipated ore grades from both the Roy Lloyd underground mine and the Golden Heart surface mine, have hindered the Company's ability to return to profitability despite of restructuring operations and significant cost cutting. On January 1, 2014, the mining operations, including operations at the Roy Lloyd and Golden Heart mines and the Jolu mill were suspended for an indefinite time.
- The Company granted 8,550,000 of incentive stock options to its directors, officers, employees and consultants. The options vest in 50% increments with half vesting immediately and the balance vesting in 12 months from date of grant. The options are exercisable at a price of $0.07 per share for a period of five years from the date of grant.
- The sale of 5,800 oz resulted in revenue of $7,747,223 and a gross operating deficiency of $21,121,113 for the nine months ended January 31, 2014. The cost of sales of $28,868,336 included cost of gold doré sold of $7,887,571, impairment of inventory to its net realizable value of $17,861,183, and other mill maintenance and mining cash operating costs of $3,119,582.
For full details of the Company's financial statements and management's discussion and analysis for the third quarter ended January 31, 2014, please see the financial reports posted on SEDAR at www.sedar.com.
About Golden Band
Golden Band Resources Inc. is a gold producer operating in the La Ronge Gold Belt in northern Saskatchewan and is listed on the TSX Venture Exchange in Canada under the symbol GBN and traded in the United States on the OTCQX under the symbol GBRIF. Commercial production was declared on April 1, 2011. The Company has been actively exploring the La Ronge Gold Belt since 1994 and has assembled a land package of 870 km2, including 13 known gold deposits and five former producing mines, being Jolu, Decade, Star Lake, EP and Komis. The Company plans to undertake aggressive drill programs throughout the La Ronge Gold Project with the goal of significantly expanding the existing NI 43-101 gold resources that have been identified to date.
On behalf of the Board of Directors of Golden Band Resources Inc.,
"Paul Saxton"
Paul Saxton, CEO
Caution Regarding Forward-Looking Information and Statements
This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding the operational plans, estimates and costs of production, and other future plans, objectives or expectations of Golden Band Resources Inc. (Company) are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's plans or expectations include risks relating to the actual results of operations, current exploration activities, fluctuating gold prices, possibility of equipment breakdowns and delays, cost overruns, general economic, market or business conditions, regulatory changes, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by the Company. The Company makes all reasonable efforts to update its corporate information on a timely basis.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Golden Band Resources Inc.
For further information:
Investor Relations: 604-682-6852
Email: info@goldenbandresources.com
www.goldenbandresources.com
