TORONTO, Nov. 14, 2017 /PRNewswire/ - Roxgold Inc.
("Roxgold" or the "Company") (TSX: ROXG) (OTC: ROGFF) today
reported its financial results for the three-month period ended
September 30, 2017.
For complete details of the unaudited Condensed Interim
Consolidated Financial Statements and associated Management's
Discussion and Analysis please refer to the Company's filings on
SEDAR (www.sedar.com) or the Company's website (www.roxgold.com).
All amounts are in U.S. dollars unless otherwise
indicated.
1. HIGHLIGHTS
For the three-month period ended September 30, 2017, and thereafter, the
Company:
- Achieved 3,400,000 hours worked LTI free;
- Sold 27,912 ounces of gold for gold sales totalling
$35,907,0001;
- Produced 28,410 ounces of gold at an average cash operating
cost of $445 per ounce
produced2 for the quarter contributing to a nine-month
production total of 91,970 ounces of gold at an average cash
operating cost of $445 per ounce
produced2;
- Incurred an all-in sustaining cost2 of $833 per ounce sold and $794 per ounce sold, for the three and nine-month
periods ended September 30, 2017,
respectively;
- Generated cash flow from mining operations2
totalling $18,028,000 ($61,573,000 for the nine-month period) and cash
flow per share2 of $0.05
(C$0.06/share) ($0.17 and C$0.22/share for the nine-month period);
- Became net cash positive2 with a cash balance of
$56,288,000 and long-term debt face
value balance of $50,100,0003;
- Mined 76,480 tonnes of ore for the quarter, a 16% increase over
Q2;
- Commenced construction work at site to facilitate the Bagassi
South expansion project;
- Commenced a drilling program targeting newly identified
geophysical targets along the Bagassi Corridor located less than
two kilometres south of the 55 Zone and the Yaramoko plant;
and
- Updated and increased the Bagassi South Mineral Resource
Estimate ("MRE") to Indicated MRE of 352,000 tonnes at 16.6 grams
of gold per tonne ("g/t Au") for 188,000 ounces of gold at a
cut-off grade of 5.0 g/t Au and Inferred MRE of 130,000 tonnes at
16.6 g/t Au for approximately 69,000 ounces of gold at a cut-off
grade of 5.0 g/t Au – a significant improvement over the previous
inferred resource estimate of 563,000 tonnes at 12.1 g/t Au for
220,000 ounces of gold at a cut-off grade of 5.0 g/t Au;
- Announced positive Feasibility Study for the Bagassi South
Project with after tax IRR of 53.2% with 1.8 year payback on
initial capital, representing an increase of Reserves of 26% for
the Yaramoko Gold Project.
"Yaramoko delivered another strong quarter of production
allowing us to build a robust cash balance. This continued
performance has put us in an excellent position to execute on our
strategy of achieving accretive, non-dilutive growth as
demonstrated by the positive Bagassi South Feasibility Study.
Additional reserves are being pursued at Bagassi South with two
rigs targeting the upgrading of high-grade inferred ounces to
indicated resources," said John
Dorward, President & CEO. "Our fourth
quarter is also off to an excellent start, with mine production
achieving a new record in October of 34,500 tonnes, as well as
achieving record through-put in the processing plant. Within this
period, there were 14 days where production exceeded 1,000 tonnes
per day or 33% above plant nameplate. High grade stope production
of nearly 19,000 tonnes contributed substantially to this,
illustrating the benefits of the Company's investment in
underground development at the 55 Zone," added Mr. Dorward.
2. NEAR-TERM OBJECTIVES
- Gold production of between 115,000 and 125,000 oz;
- Cash operating cost per ounce produced2 between
$445 and $490/oz for the year ending
December 31, 2017;
- All-in sustaining costs per ounce sold2 between
$740 and $790/oz for the year ending
December 31, 2017;
- Sustaining capital expenditures between $24 million and $28 million;
- Mineral Resource growth at depth at 55 Zone;
- Development of Bagassi South, further to an updated MRE;
and
- Testing of recently delineated regional exploration
targets.
3. MINE OPERATING ACTIVITIES
The Company considers that pre-commercial production operations
at the Yaramoko gold mine commenced in June
2016 as the construction of the processing plant and
associated infrastructure was completed, the contractual
performance tests associated with the engineering, procurement, and
construction ("EPC") lump sum contract with the DRA/Group Five
Joint Venture was passed and a first gold shipment was exported and
refined. Ramp-up of pre-commercial production continued during the
third quarter ended September 30,
2016, leading to the declaration of commercial production on
October 1, 2016. Accordingly,
there are no comparable gold sales and operational results from
mine operations from the previous year. The Company is
providing the six-month period ended December 31, 2016 results as comparative
figures.
|
Three-month period
ended September
30
|
Nine-month period
ended September
30
|
Six-month
period
ended December 314
|
|
2017
|
2016
|
2017
|
2016
|
2016
|
|
|
|
|
|
|
Operating
Data
|
|
|
|
|
|
Ore mined
(tonnes)
|
76,480
|
-
|
211,761
|
-
|
104,831
|
Ore processed
(tonnes)
|
66,670
|
-
|
195,784
|
-
|
122,135
|
Head grade
(g/t)
|
13.6
|
-
|
14.5
|
-
|
16.1
|
Recovery
(%)
|
98.6
|
-
|
98.9
|
-
|
98.9
|
Gold ounces
produced
|
28,410
|
-
|
91,970
|
-
|
62,678
|
Gold ounces
sold1
|
27,912
|
-
|
91,679
|
-
|
68,861
|
|
|
|
|
|
|
Financial Data (in
thousands of dollars)
|
|
|
|
|
|
Revenues – Gold sales
1,4
|
35,907
|
-
|
115,050
|
-
|
87,566
|
Mining operating
expenses
|
12,649
|
-
|
40,480
|
-
|
26,239
|
Government
royalties
|
1,514
|
-
|
4,620
|
-
|
4,005
|
|
Statistics (in
dollars)
|
|
|
|
|
|
Average realized
selling price (per ounce)
|
1,286
|
-
|
1,255
|
-
|
1,272
|
Cash operating cost
(per ounce produced) 2
|
445
|
-
|
445
|
-
|
379
|
Cash operating cost
(per tonne processed)2
|
190
|
-
|
209
|
-
|
195
|
Total cash cost (per
ounce sold)2
|
522
|
-
|
496
|
-
|
439
|
Sustaining capital
cost (per ounce sold)2
|
258
|
-
|
253
|
-
|
228
|
All-in sustaining
cost (per ounce sold)2
|
833
|
-
|
794
|
-
|
702
|
A. Operational performance
During the third quarter of 2017, the Yaramoko gold mine
produced 28,410 ounces and sold 27,912 ounces of gold for total
production during the nine-month period ended September 30, 2017, of 91,970 ounces of gold. The
production is in line with expectations of relatively stronger
first and fourth quarters due to higher ore head grades in the mine
schedule.
During the three-month period ended September 30, 2017, the Yaramoko gold mine
continued to operate in line with expectations delivering 76,480
tonnes of ore at 12.2 g/t with 1,730 metres of development
completed while achieving over 3,400,000 hours worked lost time
incident free.
Combined with the first half performance, a total of 211,761
tonnes of ore were mined as of September
30, 2017. With seven stoping fronts available, the
Company believes the underground mine is now positioned to increase
the proportion of mill feed coming from stoping ore. As a result, a
record mine production was achieved in October with more than
34,500 tonnes of ore at 13.7 g/t Au for 15,140 ounces mined.
During the third quarter of 2017, the plant processed 66,670
tonnes of ore at an average head grade of 13.6 g/t Au. The higher
head grade when compared to the previous quarter is due to the
mining sequence. Plant availability was 95.8% and overall
recovery was 98.6% during the quarter. The increase in head
grade, compared to the previous quarter, is expected to continue in
the fourth quarter.
As of September 30, 2017,
underground development had reached the 5049 RL ("Reduced Level"),
some 260 metres below surface. Since the Company started operations
in June 2016, it has taken advantage
of higher than planned development productivity rates from the
underground mining contractor to bring forward additional mine
development. A total of 4,660 metres of underground waste
development has been completed consisting of 1,972 metres during
the second half of 2016 and 2,688 metres for nine-month period of
2017. As a result, the Company is significantly ahead of the mine
plan contemplated in the Technical Report which included 3,294
metres for the corresponding period. This additional development
has provided early access to additional areas of the mine to
increase flexibility and resiliency for the mine plan. This
additional investment has resulted in development accessing
approximately 228,000 ounces of gold in situ to support
future stoping operations. As waste development rates exceeded
expectations to meet future production requirements, waste
development is anticipated to decrease in the fourth quarter.
B. Financial performance
Based on the Company's accounting policy (refer to note 2 of the
Company's annual consolidated financial statements as of
December 31, 2016 available on
www.sedar.com), commercial production was declared on October 1, 2016. Accordingly, there are no
comparable gold sales and operational results from mine operations
for the nine months of 2016.
During the nine-month period ended September 30, 2017, a total of 91,679 ounces of
gold were sold resulting in revenues from gold sales totalling
$115 million at an average realized
gold price of $1,255 per ounce sold
compared to an average market gold price of $1,251 per ounce. Ounces sold during the period
include 850 ounces of gold sold, but not shipped, as of
September 30, 2017 due to the timing
of gold shipments. As a result, deferred revenues totalling
$1,091,000 have been recognized on
the Company's statement of financial position as at September 30, 2017. Ounces sold are in line with
expectations as the mine schedule provided for a stronger first and
fourth quarter.
Mine operating expenses for the three and nine-month periods
represent mining, processing, and mine site-related general and
administrative expenses. Cash operating costs per tonne
processed2 totalled $190
for the quarter and $209 for the
first nine months of 2017. The variation between the
cash operating cost per tonne processed2 for the
nine-month period ended September 30,
2017 and the period presented for 2016 is mainly due to
lower mining costs per tonne mined due to a shift towards stoping
activities, standard preventive maintenance costs incurred in prior
periods in addition to the timing of general and administrative
costs. As expected, for the third quarter of 2017, mining costs per
tonne decreased compared to the previous quarters in 2017 as mining
of stoping tonnes increased to approximately 60% of total ore mined
during the quarter.
The cash operating cost per ounce produced2 totalled
$445 per ounce for the third quarter
of 2017 contributing to a cash operating cost per ounce produced of
$445 for the nine-month period ended
September 30, 2017. Cash operating
costs per ounce produced remain within the 2017 guidance of between
$445-$490 per ounce produced. The
lower cash operating cost per ounce produced and lower total cash
cost per ounce sold for the third quarter of 2017, as compared to
the previous quarter, are the result of a higher head grade
partially combined with a lower cash operating cost per tonne
processed.
During the third quarter of 2017, Roxgold invested $7,196,000 in underground mine development,
representing a sustaining capital cost per ounce sold2
of $258. This reflects the Company's
decision to invest in additional metres of development to provide
for potentially greater operational flexibility and robustness.
Investment in underground development was expected to be more
intense in the first nine months of 2017 as a result of the mining
sequence. Consequently, sustaining capital expenditures for 2017
are expected to be within guidance.
Based on the foregoing, the Company generated cash flow from
mining operations2 totalling $18,028,000 for the third quarter of 2017, for a
site all-in sustaining cost of $779
per ounce sold and a total all-in sustaining cost2 of
$833 per ounce sold. The lower all-in
sustaining cost per ounce sold for the third quarter related to a
slight decrease in waste development as the mining team focused on
stoping activities. Accordingly, the all-in sustaining
cost2 for the nine-month period ended September 30, 2017, was $794 per ounce sold. In consideration of
the advanced stage of underground mine development, as compared to
plan, and resulting decreased underground mine development planned
for the fourth quarter of 2017, the Company anticipates that the
all-in sustaining cost2 per ounce sold for 2017 will
remain within guidance of $740-$790
per ounce sold.
For comparison purposes, the Technical Report forecasted an
all-in sustaining cost of $751 per
ounce sold in 2017, the second year of operations, and a Life of
Mine all-in sustaining cost average of $590 per ounce sold as development expenditure in
the early years of the mine plan tapered off. Considering the extra
development that has been achieved since the commencement of
operations, the Company is pleased with progress against original
expectations.
Based on the financial performance discussed above, the Company
achieved cash flow from mining operations2 of
$61,573,000 for the nine-month period
ended September 30, 2017, for cash
flow per share of $0.17 (C$0.22/share), which allowed the Company to be
net cash positive2 as at September 30, 2017.
C. Exploration Update
55 Zone results
The second phase of deep drilling at the 55 Zone was designed to
follow-up on the late 2016 program which included hole
YRM-16-DD-426, the widest mineralized zone ever intersected on this
project, which returned 20.1 grams per tonne of gold over 23.8
metres. Multiple zones of high grade mineralised quartz veins were
intersected within a wide zone in hole YRM-17-DD-443B-W1 in the
2017 program, a target drilled down plunge from hole YRM-16-DD-426
at a vertical depth of approximately 1,100 metres.
Highlights include:
- 44.0 g/t gold over 3.0 metres ("m") within a broader interval
of 11.2 g/t gold over 12.5 m and a separate interval of 12.9 g/t
gold over 3.9 m including 47.8 g/t gold over 1.0 m in diamond drill
hole YRM-17-DD-443BW1 at the 55 Zone
- 8.4 g/t gold over 5.1 m including 21.0 g/t gold over 1.4 m in
diamond drill hole YRM-17-DD-440 at the 55 Zone
- Large geophysical program recently completed with drilling on
multiple targets underway
- Infill and Extensional drilling program in progress at Bagassi
South
- Currently three drill rigs active at Bagassi South and on
regional targets
Bagassi South
On November 6, 2017, the Company
announced a positive feasibility study (the "Feasibility Study")
for the Bagassi South Project located on the Company's Yaramoko
concession. The Feasibility Study envisions a satellite
underground operation at Bagassi South and an expanded processing
facility at Yaramoko. The Bagassi South expansion adds substantial
value to Roxgold by increasing gold production at the Yaramoko gold
mine by approximately 40% to over 150,000 ounces in the near
term. Like the neighbouring 55 Zone, the economics of
this additional high grade feed source are highly accretive and
generates increased cash flow from a modest capital outlay. The
highlights of the Feasibility Study are:
- After-tax NPV5% of $50
million
- After-tax IRR of 53.2% with a 1.8 year payback on initial
capital
- Average Total Cash Costs of $426/oz (including royalties)
- Average All-in Sustaining Costs of $630/oz
- Pre-Production capital of $29.6
million
- Estimated average annual gold production of 40,000 ounces
- Current mine life of 4.2 years based on reserves
- Proven and Probable mineral reserves of 170,000 ounces of gold
at 11.54 g/t Au from Bagassi South
- Represents an increase of Reserves of 26% for the Yaramoko Gold
Project (55 Zone + Bagassi South)
- Conversion ratio of 91% from Indicated Resources to Reserves;
and
- Average metallurgical recovery of 98.5% of gold.
The economic parameters presented above are based upon 100%
ownership of the expanded Yaramoko Gold Project, which is inclusive
of the Bagassi South mine. The costs and benefits associated with
the project reflect the incremental costs and benefit associated
with the Bagassi South Expansion Project only.
Under the Mining Code of Burkina
Faso, the Government of Burkina
Faso is entitled to a 10% interest in the Bagassi South
Project upon its formal inclusion in the Company's existing
Yaramoko exploitation permit.
Pre-production capital costs are estimated to total $29.6 million including $2.8 million in contingency. This figure includes
$7.9 million for underground
pre-production development and $7.1
million for the expansion of the processing plant. There is
considerable existing infrastructure and services as part of the 55
Zone underground mine which can also support the Bagassi South
Project. Additional surface infrastructure is estimated to total
$6.0 million, which includes
ventilation shaft, water storage, haulage roads, camp expansion,
tailings storage facility embankment raise, power and water
reticulation. Each of these figures has been established from first
principles in conjunction with quoted rates from contractors, many
of which were involved in the initial development of Yaramoko.
As the first expansion project outlined at Yaramoko since the
2014 feasibility study, the Company considers the Feasibility Study
illustrative of the potential to develop additional high grade
structures on the property. The Mineral Reserves calculated
by SRK Consulting (Canada) Inc.
for the Bagassi South deposit are 458,000 tonnes at a grade of
11.54 g Au/t containing 170,000 ounces gold. Gold production
from the Bagassi South ore reserves will contribute to a stronger
production profile for the Yaramoko gold mine.
As the Bagassi South Project is directly adjacent to the
Company's existing mining permit at Yaramoko, an extension to the
existing concession is planned for Bagassi South, which will be
subject to the existing fiscal regime, which is based on the 2003
Mining Code.
Roxgold has already substantially advanced the permitting
aspects of the Bagassi South Project. With the key milestone of
submission to the local regulator (BUNEE) of the project's ESIA
(Environmental and Social Impact Assessment) being completed in
October 2017. The Company expects to
advance this permit with the regulators in Burkina Faso in fourth quarter of 2017 and
furthermore the Mining Permit in the first quarter of 2018. Given
this milestone, it is expected that preliminary surface works would
also commence early in 2018. Construction would be ongoing
throughout the year, with first ore expected late in the fourth
quarter of 2018.
The assumptions utilized were a metal price of US$1,250 per ounce of gold, mining cost of
$73 per tonne, Mine site general and
administrative cost of US$36 per
tonne, processing cost of US$36 tonne
and process recovery of 98.5%. More information on the Feasibility
Study can be found in the Company's November
6, 2017, press release available on SEDAR at www.sedar.com
and on the Company's website at www.roxgold.com. The National
Instrument 43-101 Standards of Disclosure for Mineral projects
technical report will be filed on SEDAR within the 45 days of the
November 6, 2017 news release.
4. REVIEW OF FINANCIAL RESULTS
A. Mine operating profit
The Company declared commercial production on October 1, 2016 and consequently there is no
comparable mine operating profit for the nine-month period ended
September 30, 2016. During the third
quarter of 2017, revenues totalled $36,279,000 while mining operating expenses and
royalties totalled $12,649,000 and
$1,514,000, respectively, for a total
cash cost per ounce sold2 of $523. Including the doré sold, but not shipped,
as of September 30, 2017, the total
cash cost per ounce sold2 is $522. Gold sales revenues totaled $113,959,000 for the nine-month period while
mining operating expenses and royalties totaled $45,100,000 for the period. As a result,
the Company achieved a total cash cost of $497 for the first nine months of 2017
representing a mining operating margin of $758 per ounce. For more information on the cash
operating costs, see the financial performance of the Mine
Operating Activities section of this MD&A.
Depreciation for the quarter remained stable when compared to
the previous quarter as lower production was offset by a higher
asset base. The higher asset base was the result of additional
underground development during the quarter. The depreciation
expenses for the corresponding period of 2016 were capitalized
within other development costs.
B. General and administrative expenses
General and administrative expenses totalled $1,112,000 and $3,246,000 for the three and nine-month period
ended September 30, 2017,
respectively compared to $851,000 and
$2,510,000 for the corresponding
period in the prior year. Higher corporate development costs and
non-recurring professional fees and filing fees associated with the
process to become a listed issuer on the Toronto Stock Exchange,
affected the corporate expenses in 2017. In addition, the Company
has increased corporate personnel to position the Company for
growth.
C. Sustainability and other in-country
costs
Sustainability and other in-country costs totalling $352,000 and $1,125,000 for the three and nine-month period
ended September 30, 2017,
respectively comprise expenditures incurred to maintain Roxgold's
licence to operate in Burkina
Faso, as well as investments made in sustainability and
community projects related to current operations. During the
corresponding period of 2016, sustainability and other in-country
costs were capitalized within other development costs.
D. Exploration and evaluation expenses
("E&E"):
Exploration and evaluation expenses increased from $1,083,000 during the third quarter of 2016 to
$3,004,000 for the same period in
2017. The variation reflects expenditures associated with the
10,500 metre Bagassi South infill and extensional drilling program
currently underway aiming at converting the inferred mineral
resource reported in July to indicated mineral resources as well as
testing the down-plunge extension of the mineralized shoot East of
the mafic Dyke. The higher E&E expenses also represents the
4,500 metre program completed along the QVI extension
infrastructure.
Drilling costs incurred during the period totalled $775,000 and $4,345,000 for the first nine months of 2017. The
drilling campaign totalled 29,160 metres over 134 holes while the
2016 drilling costs reflected the program totalling 2,360 metres of
diamond drilling completed to further define the high grade QV1
mineralization to provide for the maiden resource estimated
published during the second quarter of 2016. Further economic
evaluation expenses of $764,000 were
incurred during the three-month period ended September 30, 2017. Remaining E&E costs are
attributable to the start of construction work at site to
facilitate the Bagassi South expansion project.
The Company incurred $1,400,000
and $2,700,000 in economic and
feasibility studies for the three and nine-month period ended
September 30, 2017, respectively.
These expenses relate to the updated MRE provided on July 19, 2017, as well as the preparation of the
Bagassi South project Feasibility Study released on November 6, 2017.
E. Share-based payment
Share-based payments are not an item affecting the Company's
cash on hand. Stock option costs reflect the decrease in stock
options granted combined with a modification of the vesting
conditions Stock options granted in January
2017 are now vesting one-third on each of the first, second
and third anniversary of the grant. Historically, one-third
of the options granted vested immediately and the remaining
two-thirds vested over the next twelve and twenty-four month
periods, respectively.
The increase in restricted share unit ("RSU") expenses for the
nine-month period ended September 30,
2017, when compared to the same period of the prior year, is
mainly associated with the fact that the Company is no longer in
the development stage. While in the development stage, a portion of
RSU expenditures was capitalized within other development costs,
which is no longer applicable as the Company is in commercial
production.
Performance share units ("PSUs") were granted to senior
management during the first quarter of 2017. As the PSUs plan
had not been approved by the Company's shareholders during the
first quarter of 2017, the PSUs were considered as cash-settled
instruments and recognized as a liability on the Company's balance
sheet with an equivalent expense based on the stock price and PSUs
vested as at the reporting date. Since the approval of the PSUs at
the Company's Annual General Meeting held on June 28, 2017, the PSUs are no longer considered
to be a liability, now being recognized within the Company's share
capital with related expenses reflecting the vesting of the PSUs
based on the valuation at the time of the grant as opposed to the
valuation of the grant at the reporting date.
During the nine-month period ended September 30, 2017, the Company granted 769,912
deferred share units ("DSUs") as part of the annual grant to
directors of the Company. The DSUs were valued at $666,000 and recognized in the Company's
condensed interim consolidated statements of income
(loss).
Share-based payments ceased to be capitalized to mineral
properties under development when the Company declared Commercial
Production on October 1, 2016.
F. Financial income (expenses)
Financial income (expenses) totalled $3,279,000 for the three-month period ended
September 30, 2017, compared to
$714,000 for the same period in
2016. The variation year over year is mainly attributable to
the change in the fair value of the Company's gold forward sales
contracts due to the increase in the price of gold compared to the
average price of the hedging contract. Interest expenses incurred
in relation to the Company's Amended Facility along with banking
charges also contributed to the variation year over year.
Other expenses include $386,000 as
final settlement of the initial tax assessment for the years 2013,
2014 and 2015 received from the Burkina
Faso tax authorities in April
2016. During the third quarter of 2016, interest expenses
and banking charges were capitalized within other development
costs, as the Company's Yaramoko project was not in commercial
production.
G. Deferred income tax expense
The deferred income tax recovery (expense) is not an item
affecting the Company's cash on hand, and is due to the recognition
of a deferred income tax liability related to the Company's profit
and timing differences, for tax purposes in Burkina Faso. See also Section 15 of this
MD&A.
H. Net income (loss)
The Company's net income for the three and nine-month periods
ended September 30, 2017, totalled
$6,936,000 and $16,485,000 respectively, compared to a net loss
of $2,462,000 and $24,773,000 for the three and nine-month periods
ended September 30, 2016. The
variation is a result of the Company's operations as the Company
was in the development stage until it declared commercial
production on October 1, 2016.
Based on the net income for the three and nine-month periods
ended September 30, 2017, the
Company's income per share was $0.02
and $0.04 versus a loss of
$0.01 and $0.07 per share for the three and nine-month
periods ended September 30, 2016.
I. Income Attributable to Non-Controlling
Interest
At September 30, 2017, the
non-controlling interest ("NCI") of the Government of Burkina Faso, which represents 10% in Roxgold
SANU S.A. totalled $5,146,000
(December 31, 2016: $1,440,000). The income attributable to the NCI
for the nine-month period ended September
30, 2017, totalling $3,706,000
is based on the net income for Roxgold SANU SA, as determined using
IFRS. This excludes all items within Other expenses and Financial
income (expenses) on the Company's consolidated statement of income
(loss), with the exception of sustainability and other in-country
costs, interest income (expense), other expenses and any related
foreign exchange gain (loss).
5. CORPORATE ANNOUNCEMENT
The Company is pleased to announce the appointment of
Eric Pick as Vice-President,
Corporate Development. Mr. Pick brings over ten years of
experience in investment banking to the role. Prior to
joining Roxgold, his most recent position was Vice President,
Investment Banking with Cormark Securities, a leading independent
brokerage firm in Canada.
6. CONFERENCE CALL INFORMATION
A webcast and conference call to discuss these results will be
held on Thursday, November 16, 2017,
at 11:00AM Eastern time.
Listeners may access a live webcast of the conference call from the
events section of the Company's website at www.roxgold.com or by
dialing toll free 1-888-231-8191 within North America or +1-647-427-7450 from
international locations.
An online archive of the broadcast will be available by
accessing the Company's website at www.roxgold.com. A telephone
replay of the call will be available two hours after the call for
90 days by dialing toll free 1-855-859-2056 and entering the call
back passcode 95275083.
1
|
Gold ounces sold and
Gold Sales include revenues of $36,279,000 and Q3 deferred revenues
of $1,091,000 related to 850 ounces sold, but not
shipped, as of September 30, 2017, due to the timing of the
shipment in Burkina Faso, offset by Q2 deferred revenues of
$1,463,000.
|
2
|
The Company provides
some non-IFRS measures as supplementary information that management
believes may be useful to investors to explain the
Company's financial results. Please refer to note 16 "Non-IFRS
financial performance measures" of the Company's MD&A dated
November 14, 2017,
available on SEDAR at www.sedar.com for reconciliation of these
measures.
|
3
|
Long-term debt face
value represents the remaining balance owing on the Amended
Facility.
|
4
|
The Company declared
commercial production on October 1, 2016. As such, the six-month
period ended December 31, 2016 includes three months
of commercial production and three months of pre-commercial
production. The pre-commercial production gold sales and mining
operating
expenses were accounted against Property, Plant and
Equipment.
|
Qualified Persons
Paul Criddle, FAUSIMM, Chief
Operating Officer for Roxgold Inc., a Qualified Person within the
meaning of National Instrument 43-101, has verified and approved
the technical disclosure contained in this press release.
Yan Bourassa, P.Geo, VP Geology
for Roxgold Inc., a Qualified Person within the meaning of National
Instrument 43-101, has verified and approved the technical
disclosure contained in this MD&A.
For further information regarding the Project, please refer to
the technical report dated June 4,
2014 and entitled "Technical Report for the Yaramoko Gold
Project, Burkina Faso" (the
"Technical Report"), available on SEDAR at www.sedar.com.
About Roxgold
Roxgold is a gold mining company with its key asset, the high
grade Yaramoko Gold Mine, located in the Houndé greenstone region
of Burkina Faso, West Africa. Roxgold trades on the TSX under
the symbol ROXG and as ROGFF on OTC.
This press release contains "forward-looking information"
within the meaning of applicable Canadian securities laws
("forward-looking statements"). Such forward-looking statements
include, without limitation: statements with respect to Mineral
Reserves and Mineral Resource estimates (including proposals for
the potential growth and/or upgrade thereof), anticipated receipt
of permits, future production and life of mine estimates,
production and cost guidance, anticipated decreases in waste
development and increases in head grade, the anticipated increased
proportion of mill feed coming from stoping ore, future
capital and operating costs and expansion and development plans
including with respect to the 55 Zone and Bagassi South, and the
expected timing thereof. 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 Gold Project in the short and
long-term, the progress of exploration and development activities
as currently proposed and anticipated, the receipt of necessary
regulatory approvals and permits, and assumptions with respect to
currency fluctuations, environmental risks, title disputes or
claims, and other similar matters, as well as assumptions set forth
in (i) the Company's technical report dated June 4, 2014, and entitled "Technical
Report for the Yaramoko Gold Project, Burkina Faso"; and (ii) the proposed
feasibility study in respect of Bagassi South as summarized in the
press release of the Company dated November
6, 2017, and entitled "Roxgold Announces Positive
Feasibility Study for its Bagassi South Project", each available on
SEDAR at www.sedar.com. While the Company considers these
assumptions to be reasonable based on information currently
available to it, they may prove to be incorrect.
Although the Company believes the expectations expressed in
such forward-looking statements are based on reasonable
assumptions, such statements are not guarantees of future
performance and actual results or developments may differ
materially from those in the forward-looking statements. Factors
that could cause actual results to differ materially from those in
forward-looking statements include: changes in market conditions,
unsuccessful exploration results, possibility of project cost
overruns or unanticipated costs and expenses, changes in the costs
and timing of the development of new deposits, inaccurate reserve
and resource estimates, changes in the price of gold, unanticipated
changes in key management personnel, failure to obtain permits as
anticipated or at all, failure of exploration and/or development
activities to progress as currently anticipated or at all, and
general economic conditions. Mining exploration and development is
an inherently risky business. Accordingly, actual events may differ
materially from those projected in the forward-looking statements.
This list is not exhaustive of the factors that may affect any of
the Company's forward-looking statements. These and other factors
should be considered carefully and readers should not place undue
reliance on the Company's forward-looking statements. The Company
does not undertake to update any forward-looking statement 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.