ALBUQUERQUE, N.M.--(BUSINESS WIRE)--Santa Fe Gold Corporation (OTCQB: SFEG) is pleased to announce financial results for its fiscal year ended June 30, 2012. Santa Fe Gold reported revenues of $11.5 million for the year ended June 30, 2012, which represents an increase of 79% over 2011. The Company's gross profit (or earnings from mining operations) increased by 34% to $4.2 million in 2012. The full version of the financial statements and management's discussion and analysis can be viewed on the Company's website at www.santafegoldcorp.com or at www.sec.gov.
“We are pleased with our growth in revenues and the increase in earnings from mining operations,” commented Pierce Carson, President and CEO. “We also are excited about our growth prospects for 2013. The recent developments at Summit are expected to contribute to higher grades and increased production in 2013.”
“Revenues have continued to increase since June 30, 2012, and for the September 2012 quarter just ended are estimated at $5.0 million,” Carson added.
2012 ANNUAL HIGHLIGHTS
- 79% increase in revenues to a record $11.5 million.
- 34% increase in gross profit (earnings from mining operations) to $4.2 million.
- Cash and cash equivalents increased to $0.6 million as of June 30, 2012, from $0.2 million at June 30, 2011.
- Current assets increased to $4.4 million as of June 30, 2012, from $3.0 million at June 30, 2011.
OUTLOOK
For 2013, the Company expects to experience continued growth, in part due to the following positive developments:
- The Company re-evaluated its mine plan and ore schedule. As a result, the Company anticipates accessing richer parts of the ore body earlier and increasing production levels up to 12,000 tons per month.
- The Company recently entered into an option agreement to acquire the Mogollon Project in Catron County, New Mexico. The acquisition of Mogollon represents a strategic opportunity to develop new ore sources to augment ore currently processed through the flotation mill at Lordsburg.
- At the Ortiz Project, the Company is proceeding with a National Instrument 43-101 compliant technical report that is expected to elevate to current status the historical resources estimated at approximately 1.7 million ounces of gold.
About Santa Fe Gold:
Santa Fe Gold is a U.S.-based mining and exploration enterprise focused on acquiring and developing gold, silver, copper and industrial mineral properties. Santa Fe controls: (i) the Summit mine and Lordsburg mill in southwestern New Mexico, which began commercial production in 2012; (ii) a substantial land position near the Lordsburg mill, comprising the core of the Lordsburg Mining District; (iii) the Ortiz gold property in north-central New Mexico; (iv) the Black Canyon mica deposit near Phoenix, Arizona; and (v) a deposit of micaceous iron oxide (MIO) in western Arizona. Santa Fe Gold intends to build a portfolio of high-quality, diversified mineral assets with an emphasis on precious metals.
To learn more about Santa Fe Gold, visit www.santafegoldcorp.com.
Cautionary Note Regarding Forward-Looking Statements:
This press release contains forward-looking statements and forward-looking information (collectively, “forward-looking statements”) within the meaning of applicable US and Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward-looking statements as a result of various factors, including, but not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, variations in the market price of any mineral products the Company may produce or plan to produce, the Company's inability to obtain any necessary permits, consents or authorizations required for its activities, the Company's inability to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies, and other risks and uncertainties disclosed in the Company’s Annual Report on Form 10-K for the year ended June 30, 2012 and its most recent quarterly reports filed with the United States Securities and Exchange Commission (the “SEC”), and other information released by the Company and filed with the appropriate regulatory agencies. All of the Company's US public disclosure filings may be accessed via www.sec.gov and its Canadian public disclosure filings may be accessed via www.sedar.com, and readers are urged to review these materials.
See Accompanying Tables
The following information summarizes the financial condition of Santa Fe Gold Corporation at June 30, 2012, including its balance sheets for the twelve months ended June 30, 2012 and 2011, respectively, and its results of operations and cash flows for the twelve months ended June 30, 2012, 2011 and 2010, respectively. The summary data are taken from our audited financial statements contained in our annual reports on Form 10-K for the financial years ended June 30, 2012, 2011 and 2010 but do not include the footnotes and other information that is included in the complete financial statements. Readers are urged to review the Company’s Form 10-K in its entirety, which can be found on the SEC’s website at www.sec.gov.
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SANTA FE GOLD CORPORATION CONSOLIDATED BALANCE SHEETS |
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| June 30, | ||||||||||
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2012 |
2011 |
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| ASSETS | ||||||||||
| CURRENT ASSETS: | ||||||||||
| Cash and cash equivalents | $ | 614,385 | $ | 172,531 | ||||||
| Accounts receivable | 2,442,399 | 2,230,605 | ||||||||
| Inventory | 951,458 | 175,578 | ||||||||
| Marketable securities | 48,776 | 97,260 | ||||||||
| Prepaid expenses and other current assets | 329,466 | 279,064 | ||||||||
| Total Current Assets | 4,386,484 | 2,955,038 | ||||||||
| MINERAL PROPERTIES | 579,000 | 579,000 | ||||||||
| PROPERTY, EQUIPMENT AND MINE DEVELOPMENT, net | 24,139,166 | 13,104,215 | ||||||||
| OTHER ASSETS: | ||||||||||
| Construction in process | - | 8,427,113 | ||||||||
| Idle equipment, net | 1,223,528 | 1,223,528 | ||||||||
| Note receivable | - | 203,422 | ||||||||
| Restricted cash | 231,716 | 410,374 | ||||||||
| Deferred financing costs, net | 1,102,070 | 314,700 | ||||||||
| Total Other Assets | 2,557,314 | 10,579,137 | ||||||||
| Total Assets | $ | 31,661,964 | $ | 27,217,390 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||||||||
| CURRENT LIABILITIES: | ||||||||||
| Accounts payable | $ | 2,199,026 | $ | 1,090,907 | ||||||
| Accrued liabilities | 2,505,785 | 2,231,860 | ||||||||
| Derivative instrument liabilities | 1,026,765 | 8,973,066 | ||||||||
| Current portion, notes payable | 9,931,468 | 78,384 | ||||||||
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Current portion, senior subordinated convertible notes payable, net of discount of $5,564 and $-0-, respectively |
444,436 | - | ||||||||
| Current portion, capital leases | 41,487 | 83,856 | ||||||||
| Completion guarantee payable | 3,359,873 | - | ||||||||
| Deferred revenue | - | 3,611,266 | ||||||||
| Total Current Liabilities | 19,508,840 | 16,069,339 | ||||||||
| LONG TERM LIABILITIES: | ||||||||||
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Senior secured convertible notes payable, net of discount of $-0- and $2,498,065, respectively |
- | 11,001,935 | ||||||||
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Senior subordinated convertible notes payable, net of discount of $-0- and $19,684, respectively |
- | 430,316 | ||||||||
| Notes payable, net of current portion | 936,996 | 58,957 | ||||||||
| Capital leases, net of current portion | 3,545 | 45,057 | ||||||||
| Asset retirement obligation | 159,048 | 149,236 | ||||||||
| Total Liabilities | 20,608,429 | 27,754,840 | ||||||||
| STOCKHOLDERS' EQUITY (DEFICIT): | ||||||||||
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Common stock, $.002 par value, 300,000,000 shares authorized; 111,143,684 and 94,744,412 shares issued and outstanding, respectively; Includes non-vested shares of -0- and 237,500, respectively |
222,287 | 188,341 | ||||||||
| Additional paid in capital | 74,846,754 | 59,021,550 | ||||||||
| Accumulated (deficit) | (63,966,224 | ) | (59,746,543 | ) | ||||||
| Accumulated other comprehensive (loss) | (49,282 | ) | (798 | ) | ||||||
| Total Stockholders' Equity (Deficit) | 11,053,535 | (537,450 | ) | |||||||
| $ | 31,661,964 | $ | 27,217,390 | |||||||
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SANTA FE GOLD CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) |
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| For the Years Ended June 30, | |||||||||||||||
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2012 |
2011 |
2010 |
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| SALES, Net | $ | 11,531,869 | $ | 6,440,897 | $ | 320,145 | |||||||||
| OPERATING COSTS AND EXPENSES: | |||||||||||||||
| Costs applicable to sales | 7,347,158 | 3,317,914 | - | ||||||||||||
| Exploration | 2,680,856 | 2,147,511 | 1,004,256 | ||||||||||||
| General and administrative | 3,303,763 | 2,823,548 | 2,119,270 | ||||||||||||
| Depreciation and amortization | 4,039,875 | 2,322,736 | 477,760 | ||||||||||||
| Accretion of asset retirement obligation | 9,812 | - | - | ||||||||||||
| 17,381,464 | 10,611,709 | 3,601,286 | |||||||||||||
| LOSS FROM OPERATIONS | (5,849,595 | ) | (4,170,812 | ) | (3,281,141 | ) | |||||||||
| OTHER INCOME (EXPENSE): | |||||||||||||||
| Interest income | 9,108 | 11,645 | 16,410 | ||||||||||||
| Miscellaneous income | 5,328 | - | 4,278 | ||||||||||||
| Other expense | (1,749,742 | ) | - | - | |||||||||||
| Gain on derivative instrument liabilities | 6,568,533 | 1,652,961 | 3,295,947 | ||||||||||||
| Accretion of discounts on notes payable | (1,066,843 | ) | (1,275,811 | ) | (1,052,160 | ) | |||||||||
| Interest expense | (2,136,470 | ) | (835,076 | ) | (192,688 | ) | |||||||||
| 1,629,914 | (446,281 | ) | 2,071,787 | ||||||||||||
| LOSS BEFORE PROVISION FOR INCOME TAXES | (4,219,681 | ) | (4,617,093 | ) | (1,209,354 | ) | |||||||||
| PROVISION FOR INCOME TAXES | - | - | - | ||||||||||||
| NET LOSS | (4,219,681 | ) | (4,617,093 | ) | (1,209,354 | ) | |||||||||
| OTHER COMPREHENSIVE LOSS | |||||||||||||||
| Unrealized loss on marketable securities | (48,484 | ) | (798 | ) | - | ||||||||||
| NET COMPREHENSIVE LOSS | $ | (4,268,165 | ) | $ | (4,617,891 | ) | $ | (1,209,354 | ) | ||||||
| Basic and Diluted Per Share data | |||||||||||||||
| Net Loss - basic and diluted | $ | (0.04 | ) | $ | (0.05 | ) | $ | (0.01 | ) | ||||||
| Weighted Average Common Shares Outstanding: | |||||||||||||||
| Basic and diluted | 101,959,367 | 93,249,081 | 87,639,127 | ||||||||||||
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SANTA FE GOLD CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS |
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| For the Years Ended June 30, | |||||||||||||||
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2012 |
2011 |
2010 |
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| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||
| Net loss | $ | (4,219,681 | ) | $ | (4,617,093 | ) | $ | (1,209,354 | ) | ||||||
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Adjustments to reconcile net loss to net cash used in operating activities: |
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| Depreciation and amortization | 4,039,875 | 2,322,736 | 477,760 | ||||||||||||
| Stock-based compensation | 926,727 | 1,010,081 | 717,547 | ||||||||||||
| Accretion of discount on notes payable | 1,066,843 | 1,275,811 | 1,052,160 | ||||||||||||
| Accretion of asset retirement obligation | 9,812 | - | - | ||||||||||||
| Write-off of note receivable | 210,889 | - | - | ||||||||||||
| (Gain) on derivative instrument liabilities | (6,568,533 | ) | (1,652,961 | ) | (3,295,947 | ) | |||||||||
| Loss on disposal of assets | 152,587 | - | 3,572 | ||||||||||||
| Amortization of deferred financing costs | 882,629 | 98,317 | 89,026 | ||||||||||||
| Net change in operating assets and liabilities: | |||||||||||||||
| Accounts receivable | (211,794 | ) | (2,230,605 | ) | - | ||||||||||
| Inventory | (775,880 | ) | (175,578 | ) | - | ||||||||||
| Prepaid expenses and other current assets | 54,719 | (11,856 | ) | (116,957 | ) | ||||||||||
| Accounts payable and accrued liabilities | 1,382,044 | 2,523,580 | (654,285 | ) | |||||||||||
| Deferred revenue | (755,442 | ) | (388,734 | ) | - | ||||||||||
| Completion guarantee payable | 504,049 | - | - | ||||||||||||
| Net Cash Used in Operating Activities | (3,301,156 | ) | (1,846,302 | ) | (2,936,478 | ) | |||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||
| Decrease to restricted cash | 178,658 | - | - | ||||||||||||
| Proceeds from disposal of assets | 25,000 | - | 31,400 | ||||||||||||
| Purchase of marketable securities | - | (98,058 | ) | - | |||||||||||
| Note receivable | (7,467 | ) | (203,422 | ) | - | ||||||||||
| Additions of property, equipment and mine development | (1,826,306 | ) | (1,156,276 | ) | (402,858 | ) | |||||||||
| Construction in progress | (4,208,960 | ) | (3,665,034 | ) | (4,893,365 | ) | |||||||||
| Net Cash Used in Investing Activities | (5,839,075 | ) | (5,122,790 | ) | (5,264,823 | ) | |||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||
| Proceeds from issuance of stock | 1,200,000 | 2,000,001 | 10,301,003 | ||||||||||||
| Proceeds from notes payable | 15,000,000 | 77,306 | 212,762 | ||||||||||||
| Proceeds from deferred revenue | - | - | 4,000,000 | ||||||||||||
| Payment of private placement fees | - | (136,000 | ) | (625,000 | ) | ||||||||||
| Payments on notes payable | (5,164,034 | ) | (201,701 | ) | (238,369 | ) | |||||||||
| Payments on capital leases | (83,881 | ) | (138,113 | ) | (130,811 | ) | |||||||||
| Payment of financing costs | (1,370,000 | ) | - | (288,000 | ) | ||||||||||
| Net Cash Provided by Financing Activities | 9,582,085 | 1,601,493 | 13,231,585 | ||||||||||||
| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 441,854 | (5,367,599 | ) | 5,030,284 | |||||||||||
| CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 172,531 | 5,540,130 | 509,846 | ||||||||||||
| CASH AND CASH EQUIVALENTS, END OF YEAR | $ | 614,385 | $ | 172,531 | $ | 5,540,130 | |||||||||
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SANTA FE GOLD CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) |
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| For the Years Ended June 30, | ||||||||||||
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2012 |
2011 |
2010 |
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| SUPPLEMENTAL CASH FLOW INFORMATION: | ||||||||||||
| Cash paid for interest | $ | 1,482,441 | $ | 799,354 | $ | 521,642 | ||||||
| SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||||||||||||
| Stock issued for services | $ | 300,000 | $ | - | $ | - | ||||||
| Stock issued for conversion of convertible notes payable | $ | 13,432,424 | $ | - | $ | - | ||||||
| Stock issued for conversion of accrued interest | $ | - | $ | - | $ | 483,000 | ||||||
| Stock issued for conversion of accrued liability | $ | - | $ | - | $ | 200,000 | ||||||
| Stock issued for conversion of note payable | $ | - | $ | - | $ | 18,219 | ||||||
| Insurance premiums financed with note payable | $ | 105,121 | $ | - | $ | - | ||||||
| Equipment purchased with note payable | $ | 790,035 | $ | - | $ | 16,825 | ||||||