Vancouver, BC – Timmins Gold Corp. (TSX:TMM, NYSE.A:TGD) is pleased to report its financial results for the nine months and year ended December 31, 2011. All results are presented in United States dollar (“US Dollars” or “USD”) unless otherwise stated. Readers should refer to the 2011 year end management discussion and analysis (MD&A) and audited financial statements for more complete information.*
NINE MONTHS AND YEAR ENDED DECEMBER 31, 2011 HIGHLIGHTS
- Metal revenues were $90.8 million, compared to $61.1 million during the same prior year nine month period. This represents a 49% increase over the prior year.
- Profit from operations was $36.6 million, compared to $27.5 million during the same prior year nine month period. This represents a 33% increase over the prior year.
- Generated record cash flows from operating activities before changes in non-cash working capital of $46.4 million, compared to $44.1 million during the year ended March 31, 2011. Cash flows from operations after changes in non-cash working capital were $24.0 million, compared to $42.7 million during the year ended March 31, 2011.
- Produced 55,487 ounces of gold and sold 56,777 ounces of gold, compared to gold produced and sold during the same prior year period of 47,031 ounces. This represents an 18% increase in gold production over the prior year. During the 12 month calendar year 2011 the Company produced a total of 74,241 ounces of gold.
- Cash cost per ounce was $608, compared to a cash cost per ounce during the same prior year period of $526.
- Completed crushing facility expansion from 14,000 tonnes per day (“t/d”) to 18,000 t/d in July, 2011.
- Completed a drill program of 205,000 metres which increased measured and indicated resources to 1.57 million ounces of gold and inferred resources to 1.35 million ounces of gold. *
- Increased solutions handling capacity by purchasing additional water concessions, adding new carbon columns and pumping capacity and by adding a mixing tank for the addition of high concentration solutions to the ore on the conveyors.
- Purchased an additional 700 hectares at La Chicharra for leach pad expansion and received permits for the expansion.
REVIEW OF FINANCIAL RESULTS
and year ended
December 31, 2011
|Year ended |
March 31, 2011
|Gold produced (oz)||55,487||65,786|
|Gold sold (oz)||56,777||62,762|
|Average realized gold price ($/oz)||1,599||1,324|
|Average gold price (London PM Fix) ($/oz)||1,634||1,294|
|Cash cost per gold ounce ($/oz)||608||530|
|Metal revenues ($)||90,768,679||83,080,428|
|Profit from operations ($)||36,576,001||35,126,411|
|Earnings per share, basic ($)||0.15||0.05|
|Earnings per share, diluted ($)||0.15||0.05|
|Cash from operations ($)||24,029,887||42,743,992|
|Cash dividends declared ($)||Nil||Nil|
|Total assets ($)||162,219,914||113,709,656|
About Timmins Gold
Focused solely in Mexico, Timmins Gold Corp. is in commercial gold production at its wholly owned San Francisco gold mine in Sonora, Mexico. The mine is a past-producing open pit heap leach operation. Timmins Gold has forecast production at a rate in excess of 100,000 ounces of gold per year.
Timmins Gold Corp.
CEO and Director
Cautionary Note Regarding Mineral Reserve Estimates
Timmins is subject to the reporting requirements of the applicable Canadian securities laws, and as a result we report our mineral reserves according to Canadian standards. Canadian reporting requirements for disclosure of mineral properties are governed by National Instrument 43 101 Standards of Disclosure for Mineral Projects (“NI 43-101”). The definitions of NI 43-101 are adopted from those given by the Canadian Institute of Mining, Metallurgy and Petroleum. U.S. reporting requirements are governed by the SEC Industry Guide 7 (“Guide 7”). These reporting standards have similar goals in terms of conveying an appropriate level of confidence in the disclosures being reported, but embody different approaches and definitions. For example, under Industry Guide 7, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. In particular, we report “resources” in accordance with NI 43-101. While the terms “Mineral Resource,” “Measured Mineral Resource,” “Indicated Mineral Resource” and “Inferred Mineral Resource” are recognized and required by Canadian regulations, they are not defined terms under standards of the SEC and generally, U.S. companies are not permitted to report resources in documents filed with the SEC. As such, certain information contained in this press release concerning descriptions of mineralization and resources under Canadian standards is not comparable to similar information made public by United States companies subject to the reporting and disclosure requirements of the SEC. In addition, an “Inferred Mineral Resource” has a great amount of uncertainty as to its existence and as to its economic and legal feasibility, and you cannot assume that all or any part of an “Inferred Mineral Resource” will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. You are cautioned not to assume that all or any part of Measured or Indicated Resources will ever be converted into Mineral Reserves, and not to assume that all or any part of an “Inferred Mineral Resource” exists, or is economically or legally mineable. In addition, the definitions of “Proven Mineral Reserves” and “Probable Mineral Reserves” under CIM standards differ in certain respects from the standards of the SEC.
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained herein may constitute forward-looking statements and are made pursuant to the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities laws. Forward-looking statements are statements which relate to future events. Such statements include estimates, forecasts and statements as to management’s expectations with respect to, among other things, business and financial prospects, financial multiples and accretion estimates, future trends, plans, strategies, objectives and expectations, including with respect to production, exploration drilling, reserves and resources, exploitation activities and events or future operations. Information inferred from the interpretation of drilling results and information concerning mineral resource estimates may also be deemed to be forward-looking statements, as it constitutes a prediction of what might be found to be present when, and if, a project is actually developed.
In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expects”, “plans, “anticipates”, believes”, “estimates”, “predicts”, “potential”, or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, level of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements.
While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggestions herein. Except as required by applicable law, Timmins Gold does not intend to update any forward-looking statements to conform these statements to actual results.