TORONTO, ON--(Marketwired - March 13, 2018) - BRIO GOLD INC. (TSX: BRIO) ("BRIO GOLD" or the "Company") announces its fourth quarter and full year 2017 financial and operating results. All dollar figures are in U.S. dollars unless otherwise indicated.
Q4 and Full Year 2017 Summary Financial Results
For the three months
ended December 31 For the twelve months
ended December 31,
In thousands of U.S. Dollars 2017 2016 2017 2016
Revenues from mining operations $ 51,413 $ 59,510 $ 217,891 $ 232,356
Mine operating (loss)/earnings $ 8,587 $ (122,379 ) $ 28,250 $ (90,074 )
Net loss $ (8,870 ) $ (22,115 ) $ (21,000 ) $ (16,859 )
Adjusted loss (1) $ (4,552 ) $ (28,897 ) $ (9,514 ) $ (17,925 )
Adjusted EBITDA(1) $ 3,719 $ 8,622 $ 30,556 $ 67,379
Cash flow from operating activity $ 10,406 $ 31,225 $ 11,732 $ 70,086
Cash flow from operating activities before changes in working capital $ 10,956 $ 20,024 $ 41,572 $ 70,470
(1) A non-GAAP financial measure. For a reconciliation of non-GAAP measures, please see the end of this press release.
Revenues from mining operations were $217.9 million on the sale of 176,069 ounces for the year ended December 31, 2017, compared to $232.4 million on the sale of 192,524 ounces for the comparable period in 2016.
Net loss in 2017 was $21.0 million or $0.18 per share, compared to a net loss of $16.9 million or $0.37 per share for 2016.
The Adjusted Loss in 2017 was $9.5 million, compared to a loss of $17.9 million for the same period of 2016 as the decrease in revenues from mining operations was offset by lower depletion, depreciation and amortization expense. See the end of this press release for a reconciliation of net loss to Adjusted Loss.
Cash flow from operating activities after changes in working capital for 2017 was an inflow of $11.7 million, compared to an inflow of $70.1 million in 2016 due to reduced cash flow from operating activities and a $29.8 million increase in working capital, largely due to a build up of ore stockpile at the RDM Mine and a reduction in trade accounts payable. Cash flow from operating activities before changes in working capital for 2017 was an inflow of $41.6 million, lower compared to an inflow of $70.5 million in 2016 due to higher per unit costs, and higher general and administrative expenses due to one-time costs associated with the transition of Brio Gold becoming a stand alone public company.
Full Year 2017 Summary Operational Results
For the three months ended December 31, For the twelve months ended December 31,
Consolidated Operating Statistics 2017 2016 Change 2017 2016 Change
Gold production (oz.) (1) 40,350 50,477 (20)% 178,025 189,662 (6)%
Gold sales (oz.) 40,455 50,093 (19)% 176,069 192,524 (9)%
Average realized gold price per ounce sold(2) $1,286 $1,199 7% $1,250 $1,219 3%
Cost of sales including depletion, depreciation and amortization per gold ounce sold $1,059 $1,421 (9)% $1,076 $1,099 (2)%
Cash cost per gold ounce produced(2) $806 $832 (3)% $846 $746 13%
All-in sustaining costs per ounce of gold produced(2) $1,150 $1,106 4% $1,126 $985 14%
(1) Operating statistics only include RDM from the date that it was acquired on April 29, 2016.
(2) A non-GAAP financial measure. Please see the end of the press release for a reconciliation.
Production during the year of 2017 from the Company's three producing mines was lower than the comparative year of 2016 by 6% due to lower production at the Fazenda Brasileiro Mine and the Pilar Mine, partially offset by higher production at the RDM Mine.
At the Fazenda Brasileiro Mine, the annual production in 2017 was 60,978 ounces of gold, 14% lower than the same period last year primarily due to lower feed grades from mine sequencing. The grade in the fourth quarter improved significantly over the previous quarter and the Company expects grade to continue to show improvements in 2018. For 2018, the Company expects production at the Fazenda Brasileiro Mine to be 65,000 to 75,000 ounces of gold.
At the Pilar Mine, lower overall grade was a result of increased production from the lower grade Maria Lazara deposit. During the fourth quarter, the company started restructuring the operation, which included halting development at Maria Lazara. The Company is now mining out the developed reserves at Maria Lazara and will be focusing production going forward on the higher grade HG1 and HG2 zones at the main Pilar mine as well as the development of the Tres Buracos open pit. The Maria Lazara mine currently has one year of developed reserves that will be mined out in 2018 and the satellite operation will then be put on care and maintenance. Pilar is expected to produce 65,000 to 75,000 ounces of gold in 2018.
The RDM Mine was put on care and maintenance for close to 5 months in 2017 due to a lack of water. The new water dam/reservoir is operating well, as the region's rainy season allowed adequate water reserves to build up. The operation has been running continuously since December 1st and the company expects that to continue into the foreseeable future. Consistent production at low cost is expected going forward, with Brio Gold forecasting a full year of production at RDM in 2018 with guidance set at 75,000 to 85,000 ounces of gold.
Overall cash costs and all-in sustaining costs per gold ounce for the year were higher than the comparative period of 2016 due to lower overall gold feed grades causing increased costs per ounce as the fixed component of production costs was allocated over fewer ounces. In addition, operating costs increased due to the strengthening of the Brazilian real against the U.S. dollar. Cost of sales including depletion, depreciation and amortization per gold ounce were lower than the comparative period of 2016 due to lower depletion, depreciation, and amortization.
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