Owner
Post by Franko10 ™ on Dec 6, 2007 10:05:57 GMT -5
CASTLE GOLD RECORDS STRONG SECOND QUARTER RESULTS;
CASH COSTS FALL TO $180 PER OUNCE
TORONTO, ON, September 7, 2007 – Castle Gold Corporation (formerly Aurogin Resources Ltd.) ("Castle Gold" or the “Company”) (TSX-V: CSG) today announced its unaudited financial results for the three and six months ended June 30, 2007. The consolidated interim financial statements along with management’s discussion and analysis are available on SEDAR at www.sedar.com and on the Company’s website at www.aurogin.com. (All currency references are to U.S. dollars, unless otherwise noted.)
Castle Gold was formed on August 28, 2007 following the amalgamation of Aurogin Resources Ltd. (“Aurogin”) and Morgain Minerals Inc. (“Morgain”). Aurogin was deemed to be the acquirer
for accounting purposes. As a result, these interim results for the three and six month periods ended June 30, 2007 reflect the results of operations and cash flows of Aurogin only and its
financial position as at that date.
Second Quarter Highlights
• Net earnings for the second quarter were $349,400 or $0.01 per share which also resulted in year to date net earnings.
• Cost of sales per ounce fell to $180 in the second quarter on sales of 3,561 ounces compared with cost of sales per ounce of $290 in the first quarter on sales of 1,241 ounces.
• Revenue was $2,378,898 in the second quarter on an average realized price per ounce sold of $668.
• Cash flow from operations in the second quarter was $1,124,054 resulting in a cash and cash equivalent balance at June 30, 2007 of $1,215,315.
• Beginning in May 2007, the El Sastre gold mine reached and exceeded the planned mining rate of 25,000 tonnes of ore per month placed on the leach pad.
• On August 28, 2007, Aurogin and Morgain completed the amalgamation of the two companies to form Castle Gold Corporation.
CEO commentary
Christopher Babsmall thingy, President and CEO of Castle Gold, made the following comments in relation to the 2007 second quarter results:
“We are extremely pleased with the second quarter results posted by the Aurogin operations. In only the second quarter of full operation, cost of sales at the El Sastre gold mine in Guatemala, have fallen to $180 per ounce, contributing to significant operating cash flow and allowing Castle Gold to post bottom line earnings.”
“These results confirm our belief that El Sastre would be a low cost producing gold mine delivering superior returns in a strong gold market. Also of significance was the fact that the mine achieved and exceeded its planned mining rate during the quarter. This speaks very positively towards the Company’s operating ability.”
“These strong results give us a tremendous starting point upon which to build a significant gold producer. In the very near future, with the commencement of commercial production at the
Company’s El Castillo gold mine in Mexico, we will be even better positioned to take advantage of a gold market that appears set to test the $700 mark again.” “It is an extremely exciting time for both management and our shareholders to be involved with
Castle Gold.”
Summary of financial and operating results (a)
(a) As a result of having to fully consolidate the results from the Company’s 50% owned El Sastre gold mine, the amounts above represent 100% of the gold ounces produced and sold, metal sales, cost of sales and accretion, depreciation, depletion and amortization.
(b) Cost of sales per ounce is calculated by dividing cost of sales as per the consolidated financial statements with gold ounces sold.
(c) Cost of sales excludes, accretion, depreciation, depletion and amortization Revenue from metal sales increased 188% in the second quarter over the first quarter from $824,575 to $2,378,898 primarily as a result of a 187% increase in the number of ounces sold and a slight increase in the average realized gold price from $665 to $668. The average spot
price in the second quarter of 2007 was $667 per ounce and $658 per ounce for the first six months of 2007.
Second quarter 2007 production was 2,444 ounces compared to 3,008 in the first quarter of 2007. While mining rates increased to planned levels, unforeseen delays in returning stripped
Three months ended
June 30,
Six months ended
June 30,
2007 2006 2007 2006
Gold ounces – produced 2,444 - 5,452 -
Gold ounces – sold 3,561 - 4,802 -
Average realized gold price ($/ounce) $668 - $667 -
Total cash costs per ounce sold ($/ounce) (b) $180 - $209 -
Metal sales $ 2,378,898 $ - $ 3,203,473 $ -
Cost of sales (c) $ 642,100 $ - $ 1,002,400 $ -
Accretion, depreciation, depletion and amortization $ 278,297 $ - $ 415,820 $ -
Mine operating earnings $ 1,458,501 $ - $ 1,785,253 $ -
Net earnings (loss) for the period $ 349,400 $ (39,839) $ 243,631 $ (132,553)
Earnings (loss) per share (basic and diluted) $ 0.01 $ (0.00) $ 0.00 $ (0.00)
Cash flow provided by (used in) operating activities $ 1,124,054 $ 47,607 $ 931,745 $ (28,966)
carbon to Guatemala from the United States simply pushed the timing of certain gold recoveries into the third quarter of 2007.
Cost of sales was $180 per ounce for the second quarter of 2007, which represents a 38% decrease from the first quarter of 2007. The reduction reflected higher gold recoveries associated with higher mining rates compared to start up levels.
Net earnings for the second quarter of 2007 were $349,400 compared to a net loss of $39,839 for the corresponding period in 2006. Mine operating earnings from El Sastre more than offset
exploration and general and administrative expenditures.
General and administrative expenditures during the second quarter of 2007 were $237,085 compared to $61,832 in the second quarter of 2006. The smaller impact on earnings in 2006
resulted from the fact that certain general and administrative costs were capitalized during the construction phase of the El Sastre mine.
Exploration expenditures during the second quarter of 2007 were $99,977 relating primarily to exploration drilling performed at El Arenal and elsewhere on the El Sastre exploitation licence,
compared to a recovery of $15,720 in the second quarter of 2006.
Cash flow from operating activities for the second quarter of 2007 was $1,124,054, compared to $47,607 in the second quarter of 2006. The increase reflects the strong quarterly results from
the El Sastre mine.
Results of Mining Operations
El Sastre Main Zone gold mine (50% ownership)
Amounts presented in the table below are at 100%
Three months ended June 30, Six months ended June 30,2007
For further information about Castle Gold contact:
Court Babsmall thingy, Investor Relations (604) 643-1727
Coal Harbour Communications Inc. (604) 662-4505 or Toll-free 1-877-642-6200
Current issued and outstanding share capital: 70,195,647
CASH COSTS FALL TO $180 PER OUNCE
TORONTO, ON, September 7, 2007 – Castle Gold Corporation (formerly Aurogin Resources Ltd.) ("Castle Gold" or the “Company”) (TSX-V: CSG) today announced its unaudited financial results for the three and six months ended June 30, 2007. The consolidated interim financial statements along with management’s discussion and analysis are available on SEDAR at www.sedar.com and on the Company’s website at www.aurogin.com. (All currency references are to U.S. dollars, unless otherwise noted.)
Castle Gold was formed on August 28, 2007 following the amalgamation of Aurogin Resources Ltd. (“Aurogin”) and Morgain Minerals Inc. (“Morgain”). Aurogin was deemed to be the acquirer
for accounting purposes. As a result, these interim results for the three and six month periods ended June 30, 2007 reflect the results of operations and cash flows of Aurogin only and its
financial position as at that date.
Second Quarter Highlights
• Net earnings for the second quarter were $349,400 or $0.01 per share which also resulted in year to date net earnings.
• Cost of sales per ounce fell to $180 in the second quarter on sales of 3,561 ounces compared with cost of sales per ounce of $290 in the first quarter on sales of 1,241 ounces.
• Revenue was $2,378,898 in the second quarter on an average realized price per ounce sold of $668.
• Cash flow from operations in the second quarter was $1,124,054 resulting in a cash and cash equivalent balance at June 30, 2007 of $1,215,315.
• Beginning in May 2007, the El Sastre gold mine reached and exceeded the planned mining rate of 25,000 tonnes of ore per month placed on the leach pad.
• On August 28, 2007, Aurogin and Morgain completed the amalgamation of the two companies to form Castle Gold Corporation.
CEO commentary
Christopher Babsmall thingy, President and CEO of Castle Gold, made the following comments in relation to the 2007 second quarter results:
“We are extremely pleased with the second quarter results posted by the Aurogin operations. In only the second quarter of full operation, cost of sales at the El Sastre gold mine in Guatemala, have fallen to $180 per ounce, contributing to significant operating cash flow and allowing Castle Gold to post bottom line earnings.”
“These results confirm our belief that El Sastre would be a low cost producing gold mine delivering superior returns in a strong gold market. Also of significance was the fact that the mine achieved and exceeded its planned mining rate during the quarter. This speaks very positively towards the Company’s operating ability.”
“These strong results give us a tremendous starting point upon which to build a significant gold producer. In the very near future, with the commencement of commercial production at the
Company’s El Castillo gold mine in Mexico, we will be even better positioned to take advantage of a gold market that appears set to test the $700 mark again.” “It is an extremely exciting time for both management and our shareholders to be involved with
Castle Gold.”
Summary of financial and operating results (a)
(a) As a result of having to fully consolidate the results from the Company’s 50% owned El Sastre gold mine, the amounts above represent 100% of the gold ounces produced and sold, metal sales, cost of sales and accretion, depreciation, depletion and amortization.
(b) Cost of sales per ounce is calculated by dividing cost of sales as per the consolidated financial statements with gold ounces sold.
(c) Cost of sales excludes, accretion, depreciation, depletion and amortization Revenue from metal sales increased 188% in the second quarter over the first quarter from $824,575 to $2,378,898 primarily as a result of a 187% increase in the number of ounces sold and a slight increase in the average realized gold price from $665 to $668. The average spot
price in the second quarter of 2007 was $667 per ounce and $658 per ounce for the first six months of 2007.
Second quarter 2007 production was 2,444 ounces compared to 3,008 in the first quarter of 2007. While mining rates increased to planned levels, unforeseen delays in returning stripped
Three months ended
June 30,
Six months ended
June 30,
2007 2006 2007 2006
Gold ounces – produced 2,444 - 5,452 -
Gold ounces – sold 3,561 - 4,802 -
Average realized gold price ($/ounce) $668 - $667 -
Total cash costs per ounce sold ($/ounce) (b) $180 - $209 -
Metal sales $ 2,378,898 $ - $ 3,203,473 $ -
Cost of sales (c) $ 642,100 $ - $ 1,002,400 $ -
Accretion, depreciation, depletion and amortization $ 278,297 $ - $ 415,820 $ -
Mine operating earnings $ 1,458,501 $ - $ 1,785,253 $ -
Net earnings (loss) for the period $ 349,400 $ (39,839) $ 243,631 $ (132,553)
Earnings (loss) per share (basic and diluted) $ 0.01 $ (0.00) $ 0.00 $ (0.00)
Cash flow provided by (used in) operating activities $ 1,124,054 $ 47,607 $ 931,745 $ (28,966)
carbon to Guatemala from the United States simply pushed the timing of certain gold recoveries into the third quarter of 2007.
Cost of sales was $180 per ounce for the second quarter of 2007, which represents a 38% decrease from the first quarter of 2007. The reduction reflected higher gold recoveries associated with higher mining rates compared to start up levels.
Net earnings for the second quarter of 2007 were $349,400 compared to a net loss of $39,839 for the corresponding period in 2006. Mine operating earnings from El Sastre more than offset
exploration and general and administrative expenditures.
General and administrative expenditures during the second quarter of 2007 were $237,085 compared to $61,832 in the second quarter of 2006. The smaller impact on earnings in 2006
resulted from the fact that certain general and administrative costs were capitalized during the construction phase of the El Sastre mine.
Exploration expenditures during the second quarter of 2007 were $99,977 relating primarily to exploration drilling performed at El Arenal and elsewhere on the El Sastre exploitation licence,
compared to a recovery of $15,720 in the second quarter of 2006.
Cash flow from operating activities for the second quarter of 2007 was $1,124,054, compared to $47,607 in the second quarter of 2006. The increase reflects the strong quarterly results from
the El Sastre mine.
Results of Mining Operations
El Sastre Main Zone gold mine (50% ownership)
Amounts presented in the table below are at 100%
Three months ended June 30, Six months ended June 30,2007
For further information about Castle Gold contact:
Court Babsmall thingy, Investor Relations (604) 643-1727
Coal Harbour Communications Inc. (604) 662-4505 or Toll-free 1-877-642-6200
Current issued and outstanding share capital: 70,195,647
