NEW YORK, Oct. 15 /PRNewswire-FirstCall/ -- Capital Gold Corporation (NYSE AMEX: CGC; TSX: CGC) ("Capital Gold" or the "Company") reported today approximately a 42% increase in revenue for fiscal 2010 and a 95% increase in cash flow from operations for fiscal 2010 compared to the previous year. The Company recorded gold sales of 54,304 ounces for fiscal year end July 31, 2010, and expects to produce between 65,000-70,000 gold ounces in fiscal 2011.
Below is a table comparing both fiscal 2009 and 2008 performance to fiscal 2010.
For the year
For the year
For the year
Summary of Annual Results
(000's except per share data and ounces sold)
Basic net income per share
Diluted net income per share
Gold ounces sold
Average price received
Cash cost per ounce sold(1)
Total cost per ounce sold(1)
(1) "Cash costs per ounce sold" is a Non-GAAP measure, which includes all direct mining costs, refining and transportation costs, by-product credits and royalties as reported in the Company's financial statements. It also excludes intercompany management fees. "Total cost per ounce sold" is a Non-GAAP measure which includes "cash costs per ounce sold" as well as depreciation and amortization as reported in the Company's financial statements.
The following table reconciles the Non-GAAP measure "Cash costs per ounce sold" to the GAAP measure of "Costs applicable to sales per ounce sold":
Reconciliation from non-GAAP measure to US GAAP
For the year
For the year
For the year
Cash cost per ounce sold
Intercompany management fee
Costs applicable to sales per ounce sold(2)
(2) This measurement excludes depreciation and amortization
"This has been an exceptionally productive year for Capital Gold," said Company President Colin Sutherland. "We continue to develop the Orion and Saric exploration projects and optimize operations at our El Chanate open pit mine as we increase production in order to achieve our fiscal year 2011 goal of producing 65,000 to 70,000 ounces of gold."
Highlights from the year ended July 31, 2010, as compared to the prior year include:
- Cash flow from operations increased 95%
- Revenue increased 42%
- Net income increased 15%
- Basic net income per share increased 14%
- Gold ounces sold increased 12%
Outlook and Strategy
- The Company expects fiscal 2011 gold sales of 65,000 to 70,000 ounces;
- Cash costs per ounce sold for fiscal 2011 are expected to be approximately $485 per ounce;
- We anticipate capital expenditures of approximately $12,500 in fiscal 2011 with $7,200 being allocated to leach pad expansion, $1,500 for the addition of agglomeration equipment, $750 in property interest payments; and $600 for additional conveyors; (3)
- Repayments on Credit Facility of approximately $3,600 during fiscal 2011. (3)
(3) These amounts are in the 000’s.
About Capital Gold
Capital Gold Corporation (CGC) is a gold production and exploration company. Through its Mexican subsidiaries and affiliates, it owns 100% of the "El Chanate" gold mine located near the town of Caborca in Sonora, Mexico. On August 2, 2010, Capital Gold acquired Nayarit Gold Inc. Capital Gold is focused on optimizing the El Chanate operations and advancing the Del Norte deposit in the Orion District in the state of Nayarit, Mexico. Capital Gold also owns and leases mineral concessions near the town of Saric, also located in Sonora, that are undergoing exploration for gold and silver mineralization. Additional information about Capital Gold and the El Chanate Gold Mine is available on the Company's website, www.capitalgoldcorp.com.
Statements in this press release and the statements of representatives and partners of Capital Gold Corporation (the "Company") related thereto, other than statements of historical information, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements with respect to the Company's plans, objectives, projections, expectations and intentions and other statements identified by words such as "projects," "may," "could," "would," "should," "believes," "expects," "anticipates," "estimates," "intends," "plans," or similar expressions. Investors are cautioned that forward-looking statements are inherently uncertain and subject to material risks. Actual performance and results may differ materially from those projected or suggested due to certain risks and uncertainties, some of which are described below. Such forward-looking statements include comments regarding the future growth of the Company. Factors that could cause actual results to differ materially include timing of and unexpected events during construction, expansion and start-up; variations in ore grade, strip ratio, tonnes mined, crushed or milled; delay or failure to receive board, regulatory or government approvals; the availability of adequate water supplies; mining or processing issues, and fluctuations in gold price and costs. Many of these factors are beyond the Company's control. There can be no assurance that future developments affecting the Company will be those anticipated by management.
Any forecasts contained in this press release constitute management's current estimates, as of the date of this press release, with respect to the matters covered thereby. We expect that these estimates will change as new information is received and that actual results will vary from these estimates, possibly by material amounts. While we may elect to update these estimates at any time, we do not undertake to update any estimate at any particular time or in response to any particular event. Investors and others should not assume that any forecasts in this press release represent management's estimate as of any date other than the date of this press release.
Additional information concerning certain risks and uncertainties that could cause actual results to differ materially from that projected or suggested is contained in the Company's filings with the Securities and Exchange Commission (SEC), copies of which are available from the SEC or may be obtained upon request from the Company. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
SOURCE Capital Gold Corporation