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November 12, 2012
Veris Gold Corp. Reports Record Net Income of US $9.0 Million and Positive Cash Flow of US $3.8 Million for the Third Quarter 2012
Vancouver, BC -- November, 12, 2012 -- Veris Gold Corp. (TSX: VG) (OCTQB: YNGFD) (Frankfurt Xetra Exchange: NG6A) (the "Company") today announced its financial and operational results for the third quarter ended September 30, 2012. This information should be read in conjunction with the Company's condensed consolidated interim financial statements, including the notes thereto, and Management's Discussion and Analysis. All dollar amounts are expressed in United States Dollars unless otherwise specified.
(in thousands of U.S. dollars)1 Three months ended September 30
2012 2011
Payable gold ounces produced 35,524 Oz 21,296 Oz
Cash cost per ounce $ 1,038 $ 2,874
Revenue $ 51,487 $ 30,116
Net income (loss) $ 9,027 $ (17,973)
Earnings (loss) per share -- basic $ 0.09 $ (0.019)
Cash generated by (used in) operating activities2 $ 3,832 $ (10,534)
Other than number of ounces, cash cost per ounce, and per share amounts
Excluding proceeds from deferred revenue
Highlights for the three-month period ended September 30, 2012 include:
The Company recorded net income of $9.0 million in the third quarter of 2012 compared to a loss of $18.0 million in the third quarter of 2011. The record net income in the quarter is primarily attributable to $51.5 million in revenue achieved through the increased gold production and a continued focus on controlling costs. The Company also achieved positive cash-flow from operations of $3.8 million during the quarter, the first positive operating cash-flow achieved since the third quarter of 2007.
During the quarter the Jerritt Canyon Mill produced 35,524 payable ounces at a total cash cost of $1,038 per payable ounce produced, a level of gold production from the Jerritt Canyon mines not achieved since 2006, and a significant increase from the comparative 21,296 ounces of produced in the third quarter of 2011 which included high grade purchased ore from Newmont. The record level of production this quarter is attributable to the steady state production achieved in June and maintained throughout the quarter, with the Company having overcome all the equipment commissioning issues experienced after the major mill refurbishment work undertaken in the first quarter. The cash costs have declined from prior quarters ($1,654 and $1,566 per payable ounce for the first and second quarter respectively) due to increased throughput in the mill and an improvement in grades as the SSX-Steer and Smith mines ramped up to the targeted production levels for the quarter. Had it not been for two shutdowns during the quarter to complete the replacement of the bucket elevator (ten days) and reline the ball mill (two days) the Company's performance would have shown even further improvement.
The Company continued to invest in the development of the SSX-Steer mine, opening up several new zones for long term mining and bringing in the remaining underground trucks to increase the tonnage to an average of 1,066 tons per day, close to the targeted 1,200 tons per day (achieved several times throughout the quarter). The Company also began testing long hole open stoping methods, a more productive method of mining that will lower the overall production cost. The ground conditions at the SSX-Steer were amenable to this form of mining and the Company has taken delivery of a long hole drill early in the fourth quarter to implement this on a long term basis.
Early in the quarter the Company commenced earthworks at Starvation Canyon, including construction of the road infrastructure and drilling of the portal. Full development of this third mine commenced later in the quarter, with Small Mine Development, LLC ("SMD") mobilizing to the site to establish the portal and begin collaring the initial shaft. Starvation Canyon is a higher grade deposit and will provide between 300 and 600 tons per day of additional ore to the mill by the second quarter of 2013.
Jerritt Canyon
The Company continued to increase the tonnage mined at the Company operated SSX-Steer mining complex, delivering 98,069 tons (an 87% increase from the previous quarter's delivery) containing an estimated 15,720 ounces during the quarter. Production was partially increased through the use of longhole open stoping for mining three stopes, as this method of mining is more effective than the drift and fill method historically used at SSX-Steer. As well, the Company completed a total refurbishment of the underground electrical system and received the remaining underground trucks resulting in a full complement of underground mining equipment. Subsequent to the third quarter, the operation also took delivery of an Atlas Copco Simba longhole drill following successful trial mining of longhole stoping during the third quarter.
The Smith mine, operated by SMD, delivered 120,400 tons to the mill, containing an estimated 18,374 ounces, an increase of 17% over the prior quarter as the mine produced an average of 1,309 tons per day, exceeding the daily production target of 1,200 tons.
Overall, mining from both Smith and SSX mines in the third quarter of 2012 averaged 2,375 tons per day, an increase of 40% from the previous quarter.
Development of the Starvation Canyon mine started with surface excavation of the area and proceeded to drilling and blasting to establish a face for the portal and a laydown area for the required temporary facilities. The surface work was completed by the end of October 2012 at which time the underground mine contractor, SMD, started the decline to provide access to the ore.
For the third quarter of 2012 the mill processed 323,575 tons through the roaster containing an estimated 40,538 ounces of gold. This compares to the previous quarter when 282,803 tons were processed containing an estimated 30,425 ounces of gold. From this the processing facility recovered 35,524 ounces of gold, a 41% increase from the 25,429 ounces recovered in the second quarter of 2012.
Ketza River
Final 2011 drill holes were sampled and sent in for assay. Work continued on the Land Assessment reports and acQuire drill hole database. Reclamation of previous exploration drill roads and drill pads commenced in June. The Yukon Environmental and Socio-economic Assessment Application that was submitted in late September of 2011 is still under review by the Yukon Environmental and Socio-economic Assessment Board.
Outlook
The Company achieved its targeted production rate of 150,000 ounce of gold per annum in the month of September. With the delivery of the remaining underground trucks and other equipment to the SSX-Steer mine, the production target of 1,200 tons per day of ore from this mine is within reach and has been achieved several times. The Company continues to process available stockpiles and receive ore from the contractor operated Smith mine, which is performing above targeted levels. The Company is currently developing the necessary infrastructure to open a third mine on the property, Starvation Canyon, located on the south end of Jerritt Canyon that will provide up to 600 tons per day of higher grade ores.
As part of the longer term strategy and to provide additional cash flows to the existing operations, the Company is currently focusing on negotiations with third parties for profitable ore processing opportunities. The Company believes the operations will run profitably with the currently planned 3,000 tons per day that will be delivered from the three underground operations by the end of Q2 2013, but will benefit from filling the remaining capacity by toll milling third party ores as the revenues from these agreements will be recorded as an offset against production costs, resulting in a significant cash cost advantage.
The Company has continued to pass all independent stack tests for mercury and other emissions, continuing to emit lowest level of these emissions in the area, and has recently received approval to run at the permitted rate of 250 tons of ore per hour through each roaster circuit based on current emissions. In addition, the Company has also substantially completed the double lined second tailings facility and the two water storage reservoirs.
The surface exploration program in 2011 has identified a number of areas of interest and proven the viability of the East and West Mahala resources which lie between the Smith and the SSX-Steer mine. Additional survey work in the Starvation area has identified further areas of interest that will need to be explored in the 2012 drill program as well.
Randy Reichert, Co-CEO and COO states, "The Q3 2012 results are a huge milestone for the Company since assuming the Jerritt Canyon operations. The positive cash flow and decrease in cost per ounce demonstrates that the operation is now running at profitable levels and the period of rebuilding the operations is quickly coming to a close. We look forward to successive quarters of increased production and decreasing cash costs."
This news release was reviewed and approved by the Company's Co-CEO and COO, Randy Reichert, M.Sc. P.Eng., the Qualified Person under NI 43-101 for purposes of this release.
Veris Gold Corp. is a growing mid-tier North American gold producer in the business of developing and operating gold mines in geo-politically stable jurisdictions. The Company's primary asset is the permitted and operating Jerritt Canyon gold mine located 50 miles north of Elko, Nevada, USA. The Company also holds a diverse portfolio of precious metals properties in British Columbia and the Yukon Territory, Canada, including the former producing Ketza River mine. The Company's focus has been on the re-development of the Jerritt Canyon mining and milling facility.
Wonder how this will affect the share price...
__________________
Quote:
Originally Posted by jasonturbo
Follow me on Instagram @jasonturtle if you want to feel better about your life
Does anyone have any advice/resources for someone looking to get into stocks? I have a pretty strong background in statistics (not sure of that is of any help) and currently taking a few courses in finance so familiar with some terminology.
I'm looking to maybe starting off with around 2000-3000 then slowly move my way up just so I don't lose too much money at the start.
Does anyone have any advice/resources for someone looking to get into stocks? I have a pretty strong background in statistics (not sure of that is of any help) and currently taking a few courses in finance so familiar with some terminology.
I'm looking to maybe starting off with around 2000-3000 then slowly move my way up just so I don't lose too much money at the start.
Learn the "street smarts" of the market + book smarts( for things like TA etc) *( No emotion / discipline) = success
Either way, I appreciate it, and worst case scenario - I lose a bunch of money, and provide others with some amusement as they laugh at my misfortune.
The joys of disclosure... not like so many others who invest and claim to make tons of money.. but never actually provide any proof. (Many of my co-workers who know nothing about investments).
__________________
Quote:
Originally Posted by jasonturbo
Follow me on Instagram @jasonturtle if you want to feel better about your life
Either would be appropriate in your case, but best of luck!
Disclosure is nice... my long term GIC's have matured and I have everything sitting in a HISA at the moment. I think I will be purchasing a big lump of VCE & VTI before the new year and another big lump a few months later depending on market conditions.
Either way, I appreciate it, and worst case scenario - I lose a bunch of money, and provide others with some amusement as they laugh at my misfortune.
The joys of disclosure... not like so many others who invest and claim to make tons of money.. but never actually provide any proof. (Many of my co-workers who know nothing about investments).
If you're playing catalyst, why don't you buy calls instead?
If it's acquired in near term, the problem with options is that you don't know when. So to be safe you have to buy later expiration options.
I thought you were buying for the FDA orange book? I'm not familiar with pharma stuff so if you're playing that, i don't see why options isn't a better way to play it.
It seems like people are betting on that since I saw a lot of Nov 17 expiration call options. But it looks like some have hedged it with puts too.
Hopefully someone else on the board can help us with options.
Highly doubt amrn gets NCE, good luck. if they pull it off somehow should be big pop
My little bet really has nothing to do with expecting a pop if they get NCE status, more so a bet that once the FDA makes its decision (good or bad) a potential suitor will finally come forward with a formal offer.
Either way, I need all the luck I can get lol.
__________________
Quote:
Originally Posted by jasonturbo
Follow me on Instagram @jasonturtle if you want to feel better about your life
525.xx today!, did you buy or are you waiting for more of a drop?
what part of "wait for a GOOD GREEN DAY" didnt u understand lol
Quote:
Originally Posted by Ulic Qel-Droma
you don't catch a falling knife.
what you perceive as a low price, may not actually be low.
say apple is at 700, and it drops to 547. is that low? would u buy there?
to some that's low. what a deal! 150 bux cheaper!
what if it drops to 400? 300? 200? 100? 0?
the strategy is knowing WHEN it's ACTUALLY a "low" (as in it's gonna turn around). not just guessing out of your ass.
always wait for a confirmation before entering.
if it's going up, you can buy anywhere and you'll make money.
so why the fuck would buy when its going down? why not wait till it's going up and reduce your risk by THAT much.
you gotta be able to flip your "buy" mentality to "short".
if it's going down, you gotta remember, all the bears that are short the stock have the OPPOSITE mentality as you.
it was HIGH, and it started to go DOWN and it was CONFIRMED going down, therefore they SHORT the stock.
and all the poor bulls are trying to buy it as it goes down. no. wrong mentality. you'll get fucking slaughtered.
as it's going down the bears are selling into it everyday. and as it slides they make money everyday.
if you're a bull, you should do the opposite, WAIT (patience) till it's actually going up (after it's gone down), and buy in. and if you're confident in your trade, then that means the market will go up almost immediately. meaning you can keep buying in as long as it keeps going up.
im a big bear, i can tell you, things always drop faster than they rise.
could take 3-4 years to build a position, and in a fraction of the time the bears can wipe it out.
fear is the strongest human emotion. as markets are going up, there's always doubt that it's topped out. but as it's tanking, everyone is fearful, and dumps.
it would be 100% retarded to buy as it's dropping like a stone. that's just gambling. trying to pick a low based off of nothing. you always wait for a confirmation.
wait for confirmation.
it can bounce here (temporarily... or not)
it can bounce at the next level or around ~466.
or ~390...etc
Honestly, I would already be short apple, and today I would have added on to my position and short more. I would double to triple my position in shorts today.
Last edited by Ulic Qel-Droma; 11-15-2012 at 03:39 PM.
Damnnn AAPL 505 to 530 today, there are definitely a lot of options players who bankedddd on the burst from 505
Attributed to "Story going around that several hedge funds were forced to liquidate Apple holdings owing to sizeable margin calls. This makes sense. $AAPL"
what part of "wait for a GOOD GREEN DAY" didnt u understand lol
wait for confirmation.
it can bounce here (temporarily... or not)
it can bounce at the next level or around ~466.
or ~390...etc
Honestly, I would already be short apple, and today I would have added on to my position and short more. I would double to triple my position in shorts today.
What do you think of todays action? looks like a hammer reversal off that 505 point. Anyone think it was telegraphed since 505 is exactly 200 point from its all time high lol.
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