Santa Fe Gold Reports Strong Operating Results for March 2012 Quarter
10.05.2012 | Business Wire
Santa Fe Gold Corporation (OTCBB: SFEG) is pleased to announce 2012 Third Quarter Highlights About Santa Fe Gold: Cautionary Note Regarding Forward-Looking Statements: See Accompanying Tables The following information summarizes the financial condition of
the financial results for the three and nine months ended March 31,
2012. Santa Fe reported record revenues of $8.1 million for the nine
months ended March 31, representing a 97% increase over the same period
of the prior fiscal year. The Company′s earnings from mining operations
also grew significantly over the period to $3.9 million, a 110% increase
over the comparable nine month period in 2011. Revenues for the three
months ended March 31, 2012 increased by 27% to a record $3.7 million,
while earnings from mining operations increased by 59% to $2.1 million.
The full version of the financial statements and management's discussion
and analysis are available in the Company′s Form 10-Q filed with the SEC
and available at www.sec.gov.
'We continue to increase production at our Summit silver-gold mine in
New Mexico and recently announced commercial production effective the
current quarter,? said Pierce Carson, CEO of Santa Fe. 'Our record
breaking third quarter is indicative of the Company′s commitment to
achieve its objectives for fiscal 2012. We look forward to fiscal 2013
as an established and growing producer of silver and gold with even
stronger operating results.?
110% increase in revenue to a record $3.7 million for the three months
ended March 31, 2012.
59% increase in earnings from mining operations to $2.1 million for
the three months ended March 31, 2012.
1,879% increase in EBITDA to $248,120 for the three months ended March
31, 2012.
97% increase in revenue to a record $8.1 million for the nine months
ended March 31, 2012.
110% increase in earnings from mining operations to $3.9 million for
the nine months ended March 31, 2012.
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 processing operations in 2010; (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 and
processing equipment 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.
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, 2011
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.
Santa Fe Gold Corporation at March 31, 2012, including its balance
sheets at March 31, 2012 and June 30, 2011, respectively, its results of
operations for the three months and nine months ended March 31, 2012 and
2011, respectively, and its cash flows for the nine months ended March
31, 2012 and 2011. The summary data for the three and nine months ended
March 31, 2012 and 2011, respectively, are unaudited; the summary data
for the financial year ended June 30, 2011 are taken from our audited
financial statements contained in our annual report on Form 10-K for the
financial year ended June 30, 2011, 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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?
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?
SANTA FE GOLD CORPORATION CONSOLIDATED BALANCE SHEETS
?
March 31, June 30, ASSETS 2012 2011 (Unaudited)
CURRENT ASSETS:
Cash and cash equivalents
$
597,871
$
172,531
Accounts receivable
2,649,654
2,230,605
Inventory
140,970
175,578
Marketable securities
190,642
97,260
Prepaid expenses and other current assets
1,356,022
279,064
Note receivable and accrued interest
?
209,533
?
-
Total Current Assets
?
5,144,692
?
2,955,038
MINERAL PROPERTIES
?
579,000
?
579,000
PROPERTY, PLANT AND EQUIPMENT,
net of depreciation of
$4,994,932 and $3,090,516, respectively
?
12,403,235
?
13,104,215
OTHER ASSETS:
Construction in process
12,577,447
8,427,113
Idle equipment, net
1,223,528
1,223,528
Note receivable and accrued interest
-
203,422
Restricted cash
230,716
410,374
Deferred financing costs
?
479,307
?
314,700
Total Other Assets
?
14,510,998
?
10,579,137
Total Assets
$
32,637,925
$
27,217,390
?
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES:
Accounts payable
$
1,200,052
$
1,090,907
Accrued liabilities
1,729,125
1,976,751
Derivative instrument liabilities
3,495,452
8,973,066
Current portion, notes payable, net of discount of $410,316 and
$-0-, respectively
6,641,766
78,384
Current portion, capital leases
40,877
83,856
Senior subordinated convertible notes payable, net of discount of
$9,252 and $-0-, respectively
440,748
-
Deferred revenue
2,855,824
3,611,266
Accrued interest payable
?
10,063
?
255,109
Total Current Liabilities
16,413,907
16,069,339
LONG TERM LIABILITIES:
Notes payable, net discount of $50,479 and $-0-, respectively
3,006,335
58,957
Capital leases, net of current portion
14,162
45,057
Senior secured convertible notes payable, net of discount of $-0-
and $2,498,065, respectively
-
11,001,935
Senior subordinated convertible notes payable, net of discount of
$-0- and $19,684, respectively
-
430,316
Asset retirement obligation
?
155,363
?
149,236
Total Liabilities
?
19,589,767
?
27,754,840
STOCKHOLDERS' EQUITY (DEFICIT):
Common stock, $.002 par value, 300,000,000 shares authorized;
109,000,030 and 94,744,412 shares issued and outstanding,
respectively; Includes non-vested granted shares of 237,500 and
575,000, respectively
217,525
188,341
Additional paid in capital
73,759,989
59,021,550
Accumulated (deficit)
(61,021,940
)
(59,746,543
)
Accumulated other comprehensive income (loss)
?
92,584
?
(798
)
Total Stockholders' Equity (Deficit)
?
13,048,158
?
(537,450
)
Total Liabilities and Stockholders' Equity (Deficit)
$
32,637,925
$
27,217,390
?
?
?
?
SANTA FE GOLD CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited)
?
Three Months Ended Nine Months Ended
?
March 31,
?
March 31, 2012
?
2011 2012
?
2011
SALES
$
3,675,293
$
2,894,007
$
8,144,512
$
4,144,269
OPERATING COSTS AND EXPENSES:
Costs applicable to sales
1,623,592
1,604,449
4,276,570
2,303,871
Exploration, mine and mill start up costs
1,001,225
597,266
2,243,246
1,669,663
General and administrative
802,356
679,757
2,494,516
2,171,297
Depreciation and amortization
668,454
577,857
1,985,173
1,725,858
Accretion of asset retirement obligation
?
-
?
-
?
6,127
?
-
Total Operating Costs and Expenses
?
4,095,627
?
3,459,329
?
11,005,632
?
7,870,689
LOSS FROM OPERATIONS
?
(420,334
)
?
(565,322
)
?
(2,861,120
)
?
(3,726,420
)
OTHER INCOME (EXPENSE):
(Loss) on disposal of assets
-
-
(152,587
)
-
Interest income
2,662
2,750
7,747
9,188
Miscellaneous income
-
2,485
5,328
14
Gain (loss) on derivative instrument liabilities
1,301,722
4,425,628
4,099,846
(898,934
)
Accretion of discounts on notes payable
(108,673
)
(322,782
)
(1,447,358
)
(931,939
)
Interest expense
?
(239,300
)
?
(180,457
)
?
(927,253
)
?
(551,791
)
Total Other Income (Expense)
?
956,411
?
3,927,624
?
1,585,723
?
(2,373,462
)
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES
536,077
3,362,302
(1,275,397
)
(6,099,882
)
PROVISION FOR INCOME TAXES
?
-
?
-
?
-
?
-
NET INCOME (LOSS)
536,077
3,362,302
(1,275,397
)
(6,099,882
)
OTHER COMPREHENSIVE INCOME (LOSS)
Unrealized gain (loss) on marketable securities
?
14,401
?
(25,102
)
?
93,382
?
66,840
COMPREHENSIVE INCOME (LOSS)
$
550,478
$
3,337,200
$
(1,182,015
)
$
(6,033,042
)
Basic and Diluted Per Share data
Net Earnings (Loss) - basic and diluted
$
0.00
$
0.04
$
(0.01
)
$
(0.07
)
Weighted Average Common Shares Outstanding:
Basic and diluted
?
108,675,592
?
94,126,551
?
99,670,730
?
92,943,423
?
?
?
SANTA FE GOLD CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
?
Nine Months Ended
?
March 31, 2012
?
?
2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss
$
(1,275,397
)
$
(6,099,882
)
Adjustments to reconcile net loss to net cash used in operating
activities:
Depreciation
1,985,173
1,725,858
Stock-based compensation
635,199
864,965
Accretion of discount on notes payable
1,447,358
931,939
Accretion of asset retirement obligation
6,127
-
(Gain) loss on derivative instrument liabilities
(4,099,846
)
898,934
Loss on disposal of assets
152,587
-
Amortization of deferred financing costs
360,393
73,738
Net change in operating assets and liabilities:
Accounts receivable
(419,049
)
(2,783,632
)
Inventory
34,608
-
Prepaid expenses and other current assets
(1,076,958
)
(109,951
)
Accounts payable and accrued liabilities
(138,481
)
1,649,185
Deferred revenue
(755,442
)
(195,326
)
Accrued interest payable
?
(245,046
)
?
209,104
Net Cash Used in Operating Activities
?
(3,388,774
)
?
(2,835,068
)
CASH FLOWS FROM INVESTING ACTIVITIES:
Decrease to restricted cash
179,658
-
Proceeds from disposal of assets
25,000
-
Purchase of marketable securities
-
(98,058
)
Notes receivable and accrued interest
(6,111
)
(201,400
)
Purchase of property, plant and equipment
(1,461,780
)
(862,720
)
Construction in progress
?
(4,150,334
)
?
(2,737,147
)
Net Cash Used in Investing Activities
?
(5,413,567
)
?
(3,899,325
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of stock
700,000
2,000,001
Proceeds from notes payable
15,105,120
77,306
Payments on notes payable
(5,133,565
)
(170,400
)
Payments on capital leases
(73,874
)
(103,013
)
Payment of private placement fees
-
(136,000
)
Payment of financing costs
?
(1,370,000
)
?
-
Net Cash Provided by Financing Activities
?
9,227,681
?
1,667,894
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
425,340
(5,066,499
)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
?
172,531
?
5,540,130
CASH AND CASH EQUIVALENTS, END OF PERIOD
$
597,871
$
473,631
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest (Includes $153,965 capitalized interest)
$
1,319,807
$
558,331
Cash paid for income taxes
$
-
$
-
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING
ACTIVITIES:
Stock issued for services
$
48,000
$
16,550
Issuance of common stock for conversion of convertible notes payable
$
13,432,424
$
-
Santa Fe Gold Corporation
Pierce Carson, President and Chief
Executive Officer
505-255-4852
or
Investor Relations:
Torrey
Hills Capital
Clay Chase
858-456-7300
cc@sdthc.com