Santa Fe Gold Reports 79% Increase in Revenues to $11.5 Million for 2012
02.10.2012 | Business Wire
Santa Fe Gold Corporation (OTCQB: SFEG) is pleased to announce 2012 ANNUAL HIGHLIGHTS OUTLOOK About Santa Fe Gold: Cautionary Note Regarding Forward-Looking Statements: See Accompanying Tables The following information summarizes the financial condition of SANTA FE GOLD CORPORATION CONSOLIDATED BALANCE SHEETS 2012 2011 SANTA FE GOLD CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) 2012 2011 2010 SANTA FE GOLD CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS 2012 2011 2010 SANTA FE GOLD CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) 2012 2011 2010
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.
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.
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.
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.
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.
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.
?
?
?
?
?
June 30,
?
?
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
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:
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
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):
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
?
?
?
?
?
?
For the Years Ended June 30,
?
?
?
?
?
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
?
?
?
?
?
?
For the Years Ended June 30,
?
?
?
?
?
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss
$
(4,219,681
)
$
(4,617,093
)
$
(1,209,354
)
Adjustments to reconcile net loss to net cash used in operating
activities:
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
?
?
?
?
?
?
For the Years Ended June 30,
?
?
?
?
?
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
Santa Fe Gold Corp
Pierce Carson, President and Chief Executive
Officer
505-255-4852
or
Investor Relations
Torrey
Hills Capital
Clay Chase, 858-456-7300
cc@sdthc.com