TSX.V: GBN
SASKATOON, Aug. 28, 2015 /CNW/ - Golden Band Resources Inc.
("Golden Band" or the "Company") (TSXV: GBN) has reported results
for the fourth quarter 2015 and year ended April 30, 2015.
The Company incurred a net loss before the impairment provision
on mine, plant and equipment in amount of $12,817,607 in 2015 compared to a loss of
$36,626,706 in 2014. The management
reassessed the expected cash flows from its mining projects and
considered the recoverability of its property, plant and equipment.
The impairment provision in amount of $15,484,261 (2014 – 71,000,000) was recognized as
a difference between the carrying value of the mine, mill and
equipment and the present value of the discounted estimated future
cash flows.
The Company incurred a net loss of $18,958,002 in Q4 2015 compared to a loss of
$80,099,915 in Q4 2014. The
decrease in the net loss in Q4 2015 in comparison to Q4 2014 is
mainly due to the suspension of the mining operations. The net loss
includes an impairment provision on properties in amount of
$15,484,261 (Q4 2014: $71,000,000).
A summary of financial results is presented below. All dollar
amounts presented are Canadian dollars, unless otherwise
specified.
SUMMARY QUARTERLY INFORMATION
CDN
$
|
Q4
2015
|
Q3
2015
|
Q2
2015
|
Q1
2015
|
Q4
2014
|
Q3
2014
|
Q2
2014
|
Q1
2014
|
Gold ounces
sold
|
-
|
-
|
667
|
-
|
3,1784
|
5,000
|
800
|
-
|
Revenues
($000's)
|
-
|
$2247
|
$9327
|
-7
|
$4,2974
|
$6,683
|
$1,064
|
-
|
Cash cost of sales
($000's)
|
1,724
|
$755
|
$1,660
|
$948
|
7,876
|
15,329
|
4,572
|
$1,8015
|
Net loss before
impairment provision
($000's)
|
$(5,175)
|
$(2,353)
|
$(2,399)
|
$(2,891)
|
$(9,100)
|
$(15,631)
|
$(7,654)
|
$(4,242)
|
Impairment provision
on
mine, plant and
equipment ($000's)
|
$(15,484)
|
-
|
-
|
-
|
$(71,000)
|
-
|
-
|
-
|
Net loss
($000's)
|
$(20,659)
|
$(2,353)
|
$(2,399)
|
$(2,891)
|
$(80,100)
|
$(15,631)
|
$(7,654)
|
$(4,242)
|
Net loss per
share1
|
$(0.07)
|
$(0.01)
|
$(0.01)
|
$(0.01)
|
$(0.28)
|
$(0.06)
|
$(0.03)
|
$(0.01)
|
Cash from (used in)
operations ($000's)
|
$(109)
|
$(866)
|
$(63)
|
$(1,077)
|
$2,5666
|
$(8,147)6
|
$(8,704)6
|
$(8,080)6
|
Total cash costs per
ounce of gold sold 3
|
-
|
-
|
$2,489
|
-
|
$2,478
|
$3,066
|
$5,715
|
-
|
Average realized gold
price/ounce
|
-
|
-
|
$1,397
|
-
|
$1,352
|
$1,337
|
$1,330
|
-
|
- All per share amounts are calculated on a weighted average,
basic and fully diluted basis.
- Per share amount is negligible and has been recorded as
nil.
- This is a non-IFRS measure. See section regarding non-IFRS
measures below.
- Net of 1,124 ounces of gold sold for the total value of
$1,534,327, which was recovered from
Greywacke bulk sample
- Represents operating costs and the excess of cost of broken ore
over net realizable value, which was written down
- Cash from operations is before the working capital support
provided by Procon Group.
- The income from camp lodging was reclassified out of Revenue
into Other Income
During Q4 2015 and Q4 2014 the Company did not produce any gold
ounces due to the shutdown of the mill and the suspension of the
mining operations since February
2014. The Company received income in amount of $356,535 for the camp lodging (Q4 2014 –
nil).
HIGHLIGHTS FOR 2015
- The property continues in a care and maintenance mode.
- During the year personnel were involved in a mill and solution
tank clean-up. Spent carbon fines and mill clean-up sludge
along with other materials were gathered during the general
clean-up and sent to Placer Micron Processing in the US for gold
and silver recoveries.
- Exploration drill programs were carried out at the Decade and
East zones which are located near the Jolu mill area. The assay lab
at the site was operated during the time of the exploration
drilling to perform assaying of the core.
- A fresh water diversion program to move surface water around
and away from the tailings area was initiated. A third party
consultant visited the property to inspect the tailings pond berms
for an independent review.
- In early February 2015 personnel
from Golden Band and Procon visited
with Ministry of the Environment personnel in Saskatoon and reviewed the operation.
Subsequent to that meeting the Ministry granted a year's extension
for the mining permits for the Golden Heart and Komis
operations.
SUMMARY ANNUAL INFORMATION
SELECTED ANNUAL INFORMATION
|
Year ended April
30,
|
|
2015
|
2014
|
2013
|
|
$
|
$
|
$
|
Revenue
|
1,155,544
|
12,043,943
|
37,665,266
|
Net Loss before
impairment provision on mine, plant
and equipment
|
(12,817,607)
|
(36,626,706)
|
(26,850,868)
|
Impairment provision
on mine, plant and equipment
|
(15,484,261)
|
(71,000,000)
|
-
|
Net Loss
|
(28,301,868)
|
(107,626,706)
|
(26,850,868)
|
Net Loss per
Share (Basic and Diluted)
|
($0.10)
|
$(0.38)
|
$(0.09)
|
Total
Assets
|
10,114,552
|
30,268,038
|
88,728,950
|
Total
Liabilities
|
110,986,024
|
102,860,842
|
53,758,577
|
Working
Deficit
|
(109,062,302)
|
(97,201,710)
|
(13,364,243)
|
For the year ended April 30, 2015,
the Company sold 667 gold ounces at an average realized gold price
of $1,397 and 2,906 silver ounces at
an average realized price of $19.47
per ounce of silver. The Company also received an amount
$166,924 as a final payment for gold
in carbon sold in late 2014. The total revenue generated from sale
of metal transactions is $1,155,544
during the year ended April 30, 2015.
For year ended April 30, 2014, the
Company sold 8,978 gold ounces at an average realized gold price of
$1,341, for revenue of $12,043,943 (the amount is net of 1,124 ounces of
Company's portion of gold sold for the total value of $1,534,327, which was recovered from Greywacke
bulk sample).
Cost savings have been initiated through the Company with the
intent to return to full production as soon as possible. From a
sustainable production platform the Company intends to resume its
efforts towards growth and expansion from its extensive property
portfolio. It will be essential to resume permitting efforts on a
number of our deposits to ensure an adequate supply of mill
feed.
For full details of the Company's financial statements and
management's discussion and analysis for the fourth quarter and
year ended April 30, 2015, 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. Commercial production was declared on
April 1, 2011. The Company has
suspended mining operations ( see news release of June 30, 2014) but 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.
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
restructuring of operations, 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.