SYS-CON MEDIA Authors: Sean Houghton, Glenn Rossman, Ignacio M. Llorente, Xenia von Wedel, Peter Silva

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SAS reports 2013 fourth quarter and year end results, beating cash cost guidance and provides 2014 guidance

All dollar amounts are stated in Canadian dollars, unless otherwise indicated

(1) See non-GAAP section for an explanation of these non-GAAP measures

TORONTO, Feb. 13, 2014 /CNW/ - St Andrew Goldfields Ltd. (T-SAS), ("SAS" or the "Company") incurred a net loss attributable to shareholders for Q4 2013 of $4.4 million or $0.01 per share, compared to net income of $12.6 million, or $0.03 per share in Q4 2012. Net earnings in Q4 2013 were significantly impacted by a 26% or US$451 per ounce decline in gold price when compared to the same period last year. Operating cash flow in the quarter was $6.9 million or $0.02 per share, compared to operating cash flow for Q4 2012 of $21.6 million, or $0.06 per share. In addition, there was an increase in non-cash depreciation and depletion charge of $2.7 million in Q4 2013 compared to Q4 2012, which also negatively impacted net earnings.

For FY 2013, SAS incurred a net loss attributable to shareholders of $5.0 million or $0.01 per share as compared to net income of $26.0 million or $0.07 per share for FY 2012. SAS generated $36.5 million in cash flow from operations, or $0.10 on a per share basis in FY 2013, compared to $54.2 million or $0.15 per share in FY 2012.

The Holt, Holloway and Hislop mines produced a total of 99,548 ounces of gold in FY 2013, at a mine cash cost of US$782 per ounce (excluding a royalty cost of US$120 per ounce). For 2014, targeted annual production is between 75,000 - 85,000 ounces of gold (excluding ounces from the second bulk sample at Taylor), with a similar mine cash cost estimate of between US$800-US$850 per ounce, before royalties. The reduced production in the near-term is due to the decrease in mineral reserves at the Holloway Mine and Hislop open pits. Through exploration and technical work planned during 2014, the Company anticipates its gold production profile will return to the 100,000 ounce level in 2015. Despite the step down in production in 2014, SAS anticipates that cash flow generation and its cash position will remain positive, which the Company views as a more significant focus in light of the current lower gold prices.

"2013 was a challenging year in the gold business, with gold price declining 16% from 2012, said Duncan Middlemiss, President & CEO of SAS. "This sharp decline which started in April of 2013 caused the Company to re-evaluate its capital programs and modify them significantly. We cut our proposed expenditures in half and delayed the advancement of the Taylor Project, which may likely be our next producing asset. With the depletion of reserves at Holloway and the Hislop open pits, both high cost operations, the Company's production guidance for this year is reduced. However, we expect to maintain positive cash flow from our mine operations as our flagship asset, the Holt Mine continues to expand."

Conference Call Information
A conference call will be held Friday, February 14, 2014 at 10:00 a.m. (EST) to discuss the fourth quarter and annual 2013 results. Participants may access the webcast via the SAS website at www.sasgoldmines.com. A recorded playback of the call will also be available via the website and will be posted within 24 hours of the call.

Q4 2013 and FY 2013 Overview

Q4 2013 Highlights FY 2013 Achievements
Produced 24,300 ounces of gold from three operations (Holt, Holloway and Hislop mines). Produced 99,548 ounces of gold in FY 2013. Achieving the mid-range of the Company's 2013 production guidance.
Sold 23,985 ounces of gold at an average realized price per ounce of gold sold (1) of US$1,259 per ounce for revenues of $31.7 million. When compared to FY 2012, gold sales revenue decreased by $13.4 million due to a US$259 per ounce decrease in the average realized price per ounce of gold sold (1), partially offset by the increase in production and a stronger US dollar relative to the Canadian dollar.
Mine cash costs of US$843 per ounce and a royalty cost of US$108 per ounce, for a total cash cost per ounce of gold sold (1) of US$951 per ounce. Mine cash cost per ounce of gold sold of US$782 per ounce for FY 2013 was below the Company's guidance. Total cash cost per ounce of gold sold (1) of US$902 per ounce for FY 2013 reduced by US$17 per ounce over FY 2012 due to the decrease in royalty cost. 
All-in sustaining costs (1) were US$1,165 per ounce. All-in sustaining cost per ounce of gold sold (1) for FY 2013 of US$1,173 per ounce, reduced by US$182 per ounce, when compared to FY 2012.
The reduction was a result of a disciplined capital expenditure program and a lower royalty cost in conjunction with a stronger US dollar for 2013.
Earned cash margin from mine operations (1) of $7.8 million and operating cash flow of $6.9 million or $0.02 per share. Both cash margin from mine operations (1) and operating cash flow remained positive, with net cash flow (1) generation of $9.2 million in FY 2013.

Holt Mine, Operations and Financial Review (see Operating and Financial Statistics - Holt Mine)

The Holt Mine ("Holt") produced 13,579 ounces of gold in Q4 2013 from processing 81,791 tonnes of ore derived from Zone 4 and Zone 6, with an average head grade of 5.42 g/t Au, which was above reserve grade for the mine. Mill recoveries were at their expected levels of approximately 95%.

Gold sales revenue for the quarter decreased by 19% over Q3 2013 and 29% over Q4 2012 due to the decrease in gold price and a 22% decrease in throughput (9% over Q4 2012) due to the hoist motor and hoist drive upgrades completed during the quarter.

Total cash cost per ounce of gold sold (1) increased by US$42 per ounce in Q4 2013 when compared to Q4 2012 due to the use of cemented backfill during the quarter and the decrease in throughput as mentioned above. Cemented backfill operations, which added an additional $10 per tonne milled to the mine-site operating cost in Q4 2013, are now fully integrated. This additional increase in mine-site cost per tonne milled (1) is expected throughout 2014. For FY 2013, total cash cost per ounce of gold sold (1) decreased by US$58 per ounce when compared to FY 2012 as the mining rate at the mine increased year over year.

Cash margin from mine operations (1) in Q4 2013 decreased by $3.8 million over Q3 2013 and $7.6 million over Q4 2012 due to the decrease in gold production and decline in gold price. Holt contributed 89% of the total cash margin from mine operations (1) earned during Q4 2013 compared to 80% for Q3 2013 and 68% for Q4 2012. For FY 2013, this performance metric decreased by $2.9 million over FY 2012 due to the decline in gold price, partially offset by the increase in throughput and a lower royalty cost. Holt contributed 76% of the total cash margin from mine operations (1) earned during FY 2013 compared to 60% for FY 2012.

Holloway Mine, Operations and Financial Review (see Operating and Financial Statistics - Holloway Mine)

The Holloway Mine ("Holloway") produced 5,654 ounces of gold from processing 47,960 tonnes of ore with an average head grade of 4.13 g/t Au primarily from the Smoke Deep Zone ("Smoke Deep"). Recoveries of approximately 89% and the production level for the quarter were both in line with expectations.

Gold sales revenue during Q4 2013 decreased by 21% when compared Q4 2012 due to the decrease in gold price, offset partially by an 8% increase in gold production which resulted from a 6% improvement in head grade.

Total cash cost per ounce of gold sold (1) increased by US$97 per ounce in Q4 2013 when compared to Q4 2012 mainly due to the increase in operating mine development. For FY 2013, total cash cost per ounce of gold sold (1) increased by US$89 per ounce when compared to FY 2012, due to the increase in labour and energy costs, offset by a US$66 per ounce decrease in royalty cost.

Cash margin from mine operations (1) in Q4 2013 decreased by $2.7 million over Q4 2012 and $7.1 million in FY 2013 over the previous year, mainly as a result of the decrease in the gold price and increase in costs. Holloway contributed 12% of the total cash margin from mine operations (1) earned during FY 2013 as compared to 19% for FY 2012.

Hislop Mine, Operations and Financial Review (see Operating and Financial Statistics - Hislop Mine)

The Hislop Mine ("Hislop") produced 5,068 ounces of gold during Q4 2013 from processing 98,293 tonnes of ore at a head grade of 1.96 g/t Au. When compared to Q3 2013, production increased by 28% as a result of the increase in throughput.

Gold sales revenue in Q4 2013 decreased by 34% or $3.5 million when compared to Q4 2012 due to the 15% decrease in gold production sold and the decline in gold price.

Total cash cost per ounce of gold sold (1) increased by US$102 per ounce in Q4 2013 when compared to Q4 2012 and increased by US$62 per ounce for FY 2013 when compared to FY 2012 as a result of increased stripping costs as mining transitioned from the East Pit to the West Pit during the quarter.

Cash margin from mine operations (1) in Q4 2013 decreased by $0.8 million when compared to Q3 2013 and decreased by $3.4 million when compared to Q4 2012 as a result of the lower gold price and increased costs. For FY 2013, cash margin from mine operations (1) decreased by $8.6 million when compared to FY 2012 due to the 14% decrease in throughput and lower gold price. Hislop contributed 12% of the total cash margin from mine operations (1) earned during FY 2013 compared to 21% for FY 2012.

Advanced Exploration Program - Taylor Project ("Taylor")
In Q4 2013, the Company conducted geological modelling and technical work to update the resource model, as well as maintain the surface and ramp infrastructure. Given the exploration potential available, a 1,500 m (7 hole) underground drill program commenced in late December to potentially expand the 1004 lens mineralization further to the east and at depth. In December 2013, the Company updated the mineral resources and mineral reserves estimate at Taylor incorporating drill results from the summer program.

Exploration Programs
Exploration activities during FY 2013 were focussed on the near mine targets, specifically exploring for strike and depth extensions of the known mineralized zones and also exploring for potential repetitions and satellite zones situated near the operations.  In 2013, SAS drilled a total of 49,900 m of surface core and an additional 8,700 m of underground drilling. The majority of surface drilling activities were focused on the evaluation of Smoke Deep at Holloway, and the 147 and Grey Fox zones and Hislop Pit Complex on the Hislop Property.  The majority of the underground drilling took place on the 550m Level at Holloway to evaluate the potential of Smoke Deep and the 220m Level at Taylor targeting the eastern extension of the 1004 lens of the West Porphry Zone ("WPZ").

More generative exploration targets were evaluated during the 2013 field season with SAS exploration personnel conducting geochemical sampling, trenching and mapping exercises. A number of field season generated targets warrant drill follow-up in 2014.

Outlook for 2014
SAS produced 99,548 ounces of gold in FY 2013 meeting the mid-range of its production guidance. SAS is forecasting 2014 annual production of between 75,000 - 85,000 ounces of gold from its three operations with similar mine cash cost estimates to 2013. In 2014, SAS plans to continue its ramp development to depth of the WPZ at Taylor and to extract the second bulk sample. Pending positive results from the second bulk sample program, SAS estimates it will be able to bring Taylor into production in the first half of 2015. Exploration in 2014 remains focused on the near-mine targets and key targets remain Zone 4 up-dip at Holt, the Ghost Zone, and several targets on the Hislop Property.  SAS is sufficiently funded to achieve its near-term objectives.

Capital Resources
During FY 2013 SAS generated $9.2 million in net cash flow (1), despite significant declines in the gold price. Working capital at the end of 2013 was $13.9 million compared to a working capital of $18.2 million as at December 31, 2012, which includes the classification of US$9.0 million owing on the term credit facility as a current liability at December 31, 2013. The Company's financial position remains positive at the end of FY 2013 with cash and cash equivalents of $33.7 million. The Company has access to additional cash resources by way of a US$10.0 million revolving credit facility, and in conjunction with the expected cash flow from operations, the Company is well positioned to finance its planned capital programs for 2014, which include the advancement of Taylor, and to fulfil its debt obligation.

Capital programs of $32.0 million for 2014 consist of the following:

           
Amounts in thousands of Canadian dollars rounded to nearest million decimal place     2014 Budget
         
           
Mine capital, Taylor and Aquarius expenditures budgeted for 2014        
  Holt   $   15,000
  Holloway     200
  Holt Mill     800
      $   16,000
  Taylor     14,000
  Aquarius     2,000
      $   32,000
         

The majority of the capital expenditures to be incurred at the producing mines are sustaining capital (see "non-GAAP Measures - All-in sustaining costs"). Expenditures at Taylor do not reflect expected revenues from the processing of ore extracted from the second bulk sample program. The $2.0 million expenditure planned at the Aquarius Project includes completing an update of the 2003 Feasibility Study for the project.

Mineral Resources and Mineral Reserves Update
Compared to the December 31, 2012, mineral resources estimate, the December 31, 2013, mineral resources have increased by approximately 552,000 ounces of gold in the measured and indicated categories and 60,000 ounces of gold in the inferred category. These increases are mainly due to the addition of indicated and inferred resources beneath the East and West pits at Hislop, and inferred resources at Zone 4 at Holt and the Deep Thunder Zone east of Holloway.

Compared to the December 31, 2012, mineral reserves estimate, the December 31, 2013 mineral reserves estimate decreased from approximately 735,000 ounces to approximately 668,000 ounces. The decrease is a result of mining activities in FY 2013, which depleted various zones at Holloway and Hislop, and as a result of a mine re-design at Taylor following a geological re-interpretation. The decrease was partially offset by an increase in mineral reserves at Holt (Zone 4, Tousignant Zone, U-100 Zone) and Hislop (Thor Zone).

SAS - Mineral Resources Estimates (December 31, 2013)

Project Measured Indicated Measured + Indicated Inferred
Tonnes
('000)
Grade
(g/t Au)
Ounces
Au
('000 oz)
Tonnes
('000)
Grade
(g/t Au)
Ounces
Au
('000 oz)
Tonnes
('000)
Grade
(g/t Au)
Ounces
Au
('000 oz)
Tonnes
('000)
Grade
(g/t Au)
Ounces
Au
('000 oz)
Holt 3,627 3.85 448 2,145 4.21 290 5,772 3.98 739 1,101 5.13 181
Holloway 281 3.83 35 3,179 4.10 419 3,460 4.07 453 3,279 4.59 484
Hislop - - - 970 4.02 125 970 4.02 125 690 4.16 92
Taylor - - - 2,068 4.54 302 2,068 4.54 302 1,936 4.32 269
Aquarius - - - 23,112 1.49 1,106 23,112 1.49 1,106 502 0.87 14
Clavos - - - 503 4.81 78 503 4.81 78 318 4.73 48
     TOTAL 3,909 3.84 483 31,977 2.26 2,320 35,886 2.43 2,803 7,826 4.33 1,089
Notes:
a)      Mineral Resources are reported exclusive of Mineral Reserves effective December 31, 2012;
b)      Mineral Resources were estimated by Management according to CIM Definition Standards -  November 2010;
c)      Mineral Resources for Holt, Holloway and Hislop used a US$1,400 per ounce gold price and an exchange rate of C$1.03 = US$1.00;
d)      Mineral Resources for Holt, Holloway, and Hislop (Hislop Pit Complex only) were estimated at a cut-off grade of 2.50 g/t Au;
e)      Mineral Resources were estimated using a block cut-off grade of 2.50 g/t Au, a US$1,400 per ounce gold price and an exchange rate of C$1.03 = US$1.00 for the WPZ. A block cut-off grade of 3.00 g/t Au, A US$1,200 per ounce gold price and an exchange rate of C$1.00 = US$0.98 was used for Shoot Zone;
f)      Mineral Resources for Aquarius are as of the October 2, 2006, RPA Technical Report. Mineral Resources were calculated using a long term gold price of US$500 per ounce and an exchange rate of C$1.00 = US$0.90. No cut-off grade was applied because of uncertainty about selectivity within the deposit;
g)      Mineral Resources for the Clavos Joint Venture were estimated as of the October 2012, RPA Technical Report. Mineral Resources were calculated using a long term gold price of US$1,600 per ounce and an exchange rate of C$1.00 = US$1.00. A cut-off grade of 2.75 g/t Au was applied.
h)      Mineral resources for Clavos noted in the table represents SAS' 40% share of the project resource.
i)      Tonnes and gold ounce information is rounded to the nearest thousands. As a result, rows and columns may not add exactly due to rounding.

SAS - Mineral Reserves Estimates (December 31, 2013)

Property Proven Probable Proven + Probable
Tonnes
('000)
Grade (g/t
Au)
Ounces Au
('000 oz)
Tonnes
('000)
Grade (g/t
Au)
Ounces Au
('000 oz)
Tonnes
('000)
Grade (g/t
Au)
Ounces Au
('000 oz)
Holt 1,479 4.17 198 1,623 5.26 275 3,101 4.74 473
Holloway 37 4.47 5 22 4.53 3 60 4.49 9
Hislop 7 1.07 0 381 4.36 53 388 4.30 54
Taylor - - - 736 5.63 133 736 5.63 133
         TOTAL 1,523 4.16 204 2,762 5.23 465 4,286 4.85 668
Notes:
a)      Mineral Reserves are excluded from Mineral Resources effective December 31, 2012;
b)      Mineral Reserves were estimated by Management according to CIM Definition Standards -  November 2010;
c)      Mineral Reserves were estimated using a gold price of US$1,300 per ounce and an exchange rate of C$1.03 = US$1.00;
d)      Mineral Reserves for  Holt were estimated using a cut-off grade of 3.01 g/t Au;
e)      Mineral Reserves for Holloway were estimated using a cut-off grade of 3.93 g/t Au
f)      Mineral Reserves for Hislop were estimated using a cut-off grade of 1.64 g/t Au at the West Pit, and 3.00 g.t Au for Thor;
g)      Mineral Reserves for Taylor were estimated using a "stope-by-stope" cut-off grade;
h)      Tonnes and gold ounce information is rounded to the nearest thousands. As a result, rows and columns may not add exactly due to rounding.

Qualified Person
Production at the Holt, Holloway and Hislop mines, processing at the Holt Mill, and mine development and production activities at the operations were being conducted under the supervision of Duncan Middlemiss, P.Eng. Mr. Middlemiss was the Company's Chief Operating Officer and Vice-President of Operations, until his appointment as SAS' President & CEO on October 1, 2013. Subsequent to Mr. Middlemiss' appointment, Marc-Andre Pelletier, P. Eng, was appointed General Manager of Operations in Q4 2013, and is the qualified person responsible for activities at the operations.

Exploration activities on the Company's various mineral properties, including the drilling program at Taylor, and the update of mineral resources is under the supervision of Mr. Doug Cater P. Geo, the Company's Vice-President, Exploration.

Mineral reserves were updated under the supervision of Mr. Pierre Rocque, P. Eng., the Company's Vice-President, Engineering.

Messrs. Middlemiss, Pelletier, Cater and Rocque are qualified persons as defined by NI 43-101, and have reviewed and approved this news release.

 
The following abbreviations are used to describe the periods under review throughout this release.
Abbreviation   Period Abbreviation   Period
Q1 2013 January 1, 2013 - March 31, 2013 Q1 2012 January 1, 2012 - March 31, 2012
Q2 2013 April 1, 2013 - June 30, 2013 Q2 2012 April 1, 2012 - June 30, 2012
Q3 2013 July 1, 2013 - September 30, 2013 Q3 2012 July 1, 2012 - September 30, 2012
Q4 2013 October 1, 2013 - December 31, 2013 Q4 2012 October 1, 2012 - December 31, 2012
FY 2013  January 1, 2013 - December 31, 2013  FY 2012  January 1, 2012 - December 31, 2012

 

Non-GAAP Measures
The Company has included the following non-GAAP performance measures: adjusted net earnings ; total cash cost per ounce of gold sold; all-in sustaining cost per ounce of gold sold; mine-site cost per tonne milled; cash margin from mine operations; average realized price per ounce of gold sold; cash margin per ounce of gold sold; net cash flow; and operating cash flow per share; and throughout this press release, which do not have standardized meanings prescribed by International Financial Reporting Standards ("IFRS") and are not necessarily comparable to other similarly titled measures of other companies due to potential inconsistencies in the method of calculation. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, the Company and certain investors use this information to evaluate the Company's performance. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Refer to the non-GAAP section of this press release for a discussion and the reconciliation of these non-GAAP measurements to the Company's 2013 Annual Financial Statements.

The unaudited Balance Sheets, Statements of Operations and Statements of Cash Flows for the Company for the three and twelve months ended December 31, 2013, can be found at the end of this release.

To review the complete 2013 Annual Financial Statements and the Annual Management's Discussion and Analysis for 2013, please see SAS's SEDAR filings under the Company's profile at www.sedar.com or the Company's website at www.sasgoldmines.com.

About SAS
SAS (operating as "SAS Goldmines"), is a gold mining and exploration company with an extensive land package in the Timmins mining district, north-eastern Ontario, which lies within the Abitibi greenstone belt, the most important host of historical gold production in Canada.

SAS owns and operates the Holt, Holloway and Hislop mines and produced approximately 100,000 ounces of gold in 2013. The Company is also advancing the Taylor Project and is conducting aggressive exploration across 120km of land straddling the Porcupine-Destor Fault Zone.

FORWARD-LOOKING INFORMATION

This news release contains forward-looking information and forward-looking statements (collectively, "forward-looking information") under applicable securities laws, concerning the Company's business, operations, financial performance, condition and prospects, as well as management's objectives, strategies, beliefs and intentions. Forward-looking information is frequently identified by such words as "may", "will", "plan", "expect", "estimate", "anticipate", "believe", "intend" and similar words referring to future events and results, including the Company's production and cash cost guidance for 2014; the increase in the Company's production level in 2015; the continuation of advanced exploration at the Taylor Project including the planned second bulk sample, and the commencement of production at Taylor and the respective timing thereof; the extent of the exploration programs in 2014; and the sufficiency of the Company's capital resources to carry out its planned objectives. In addition, mineral resources and mineral reserves constitute forward-looking information as they involve the assessment, based on certain estimates and assumptions, that such mineral resources and mineral reserves can be profitably produced in the future.

This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied by the forward-looking information. Factors that may cause actual results to vary materially include, but are not limited to, uncertainties relating to the interpretation of the geology, continuity, grade and size estimates of the mineral reserves and resources; unanticipated operational or technical difficulties which could escalate operating and/or capital costs and reduce anticipated production levels; the Company's dependence on key employees and changes in the availability of qualified personnel; fluctuations in gold prices and exchange rates; insufficient funding or delays or inability to raise additional financing on satisfactory terms if required; operational hazards and risks, including the inability to insure against all risks; changes in laws, regulations and the risks of obtaining necessary licenses and permits; changes in general economic conditions and changes in conditions in the financial markets. Such forward looking information is based on a number of assumptions, including but not limited to the level and volatility of the price of gold, the accuracy of reserve and resource estimates and the assumptions on which such estimates are based, the ability to achieve capital and operating cost estimates, the ability of the Company to retain and attract qualified personnel, the sufficiency of the Company's cash reserves and operating cash flow to complete planned development and exploration activities, the availability of additional financing on acceptable terms if and as required and the level of stability of general business and economic conditions. Should one or more risks and uncertainties materialize or should any assumptions prove incorrect, then actual results could vary materially from those expressed or implied in the forward-looking information and accordingly, readers are cautioned not to place undue reliance on this forward-looking information. SAS does not assume the obligation to revise or update this forward‐looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws. A description of these risks and uncertainties are can also be found in the Company's Annual Information Form obtained on SEDAR at www.sedar.com.

NON-GAAP MEASURES

Adjusted net earnings (loss)
Adjusted net earnings (loss) is a non-GAAP performance measure and does not constitute a measure recognized by IFRS and does not have a standardized meaning defined by IFRS, as well it may not be comparable to information in other gold producers' reports and filings. Adjusted net earnings (loss) is calculated by removing the gains and losses, resulting from the mark-to-market revaluation of the Company's gold-linked liabilities and foreign currency derivative contracts, one-time gains or losses on the disposition of non-core assets, periodic adjustments to the Company's asset retirement obligations, and expenses, asset impairment gains or losses and significant tax adjustments not related to current period's earnings, as detailed in the table below.  The Company discloses this measure, which is based on its Financial Statements, to assist in the understanding of the Company's operating results and financial position.

                         
Amounts in thousands of Canadian dollars, except per share amounts     Q4 2013     Q4 2012     FY 2013     FY 2012
                         
Net income (loss) per Financial Statements   $   (4,365)   $   12,632   $  (5,018)   $  25,992
Reversal of unrecognized deferred income tax assets     -     (8,312)     (1,256)     (8,312)
Mark-to-market loss (gain) on gold-linked liabilities     (594)     (151)     (1,596)     1,667
Mark-to-market loss (gain) on foreign currency derivatives     91     333     1,065     (2,061)
Write-down of investment in joint venture     -     -     -     -
Write-down of mining equipment     -     -     994     -
Impairment loss on available-for-sale investments     67     825     567     825
Gain on divestiture of non-core assets     -     272     -     (247)
Tax effect of above items     126     (114)     (116)     160
Adjusted net earnings (loss)   $ (4,675)   $  5,485   $  (5,360)   $  18,024
                         
Weighted average number of shares outstanding (000s)                        
  Basic     368,295     368,246     368,270     368,246
  Diluted     368,295     368,692     368,270     368,604
                         
Adjusted net earnings (loss) per share - basic and diluted   $ (0.01)   $  0.01   $  (0.01)   $  0.05
                         

Total cash cost per ounce of gold sold
Total cash cost per ounce of gold sold is a non-GAAP performance measure and does not constitute a measure recognized by IFRS and does not have a standardized meaning defined by IFRS, as well it may not be comparable to information in other gold producers' reports and filings. The Company has included this non-GAAP performance measure throughout this document as the Company believes that this generally accepted industry performance measure provides a useful indication of the Company's operational performance. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company's performance and ability to generate cash flow. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The following table provides a reconciliation of total cash costs per ounce of gold sold to production expenses per the Financial Statements for Q4 2013, Q4 2012, FY 2013 and FY 2012:

                         
Amounts in thousands of Canadian dollars, except where indicated     Q4 2013     Q4 2012     FY 2013     FY 2012
                         
Mine site operating costs per Financial Statements   $   21,216   $   19,242   $  79,499   $  73,769
Production royalties per Financial Statements     2,720     3,590     12,208     12,753
Adjustments (1)     -     -     -     (99)
Total cash costs   $  23,936   $  22,832   $  91,707   $  86,423
                         
Divided by gold ounces sold     23,985     26,050     98,654     94,067
                         
Total cash cost per ounce of gold sold (Canadian dollars)   $  998   $  876   $  930   $  919
                         
Average USD:CAD exchange rate   $  1.05   $  0.99   $  1.03   $  1.00
                         
Total cash cost per ounce of gold sold (US$)   $  951   $  884   $  902   $  919
                         
Note:
(1)     In Q1 2012, the Company accrued a royalty liability of $99 at Holloway which was incurred during the period from August 2011 to December 2011. This amount has been retroactively applied to the calculation of the total cash cost per ounce of gold sold for FY 2012.

All-in sustaining cost per ounce of gold sold
All-in sustaining cost per ounce of gold sold is a non-GAAP performance measure and does not constitute a measure recognized by IFRS and does not have a standardized meaning defined by IFRS, as well it may not be comparable to information in other gold producers' reports and filings. The Company has included this non-GAAP performance measure throughout this document as the Company believes that this generally accepted industry performance measure provides a useful indication of the Company's operational performance. Effective Q3 2013, the Company has adopted the all-in sustaining definition as set out in the guidance note released by the World Gold Council on June 27, 2013. All-in sustaining costs include mine-site operating costs and production royalties incurred at the Company's mining operations, sustaining capital expenditures (which the Company defines as any capital expenditures that are reinvested into the business to maintain the current level of operations), corporate administration expense, mine-site exploration costs, and reclamation cost accretion. The Company believes that this measure represents the total costs of producing gold from current operations, and provides the Company and other stakeholders with additional information that illustrates the Company's operational performance and ability to generate cash flow. This cost measure is reported on a consolidated level and on a per ounce of gold sold basis. As the measure seeks to reflect the full cost of gold production from current operations, new project capital is not included. Certain other cash expenditures, including tax payments and financing costs are also not included.

                         
Amounts in thousands of Canadian dollars, except where indicated     Q4 2013     Q4 2012     FY 2013     FY 2012
                         
Mine site operating costs per Financial Statements   $   21,216   $  19,242   $  79,499   $   73,769
Production royalties per Financial Statements     2,720     3,590     12,208     12,753
Adjustments (1)     -     -     -     (99)
                         
Add (less):                        
  Sustaining mine capital     3,255     7,580     14,416     31,857
  Mine site exploration     335     757     5,501     1,309
  Mine reclamation obligation      98     87     396     349
  Corporate administration      1,703     2,340     7,148     7,491
All-in sustaining costs   $  29,327   $  33,596   $  119,168   $  127,429
                         
Divided by gold ounces sold     23,985     26,050     98,654     94,067
                         
All-in sustaining cost per ounce of gold sold (Canadian dollars)   $   1,223   $   1,290   $   1,208   $   1,355
                         
Average USD:CAD exchange rate   $   1.05   $   0.99   $   1.03   $   1.00
                         
All-in sustaining cost per ounce of gold sold (US$)   $   1,165   $   1,301   $   1,173   $   1,355
                         
Note:
(1)      In Q1 2012, the Company accrued a royalty liability of $99 at Holloway which was incurred during the period from August 2011 to December 2011. This amount has been retroactively applied to the calculation of the total cash cost per ounce of gold sold for FY 2012.

Mine-site cost per tonne milled
Mine-site cost per tonne milled is a non-GAAP performance measure and does not constitute a measure recognized by IFRS and does not have a standardized meaning defined by IFRS, as well it may not be comparable to information in other gold producers' reports and filings. As illustrated in the table below, this measure is calculated by adjusting Production Costs, as shown in the statements of operations for inventory level changes and then dividing by tonnes processed through the mill. Since total cash cost per ounce of gold sold data can be affected by fluctuations in foreign currency exchange rates, Management believes that mine-site cost per tonne milled provides additional information regarding the performance of mining operations and allows Management to monitor operating costs on a more consistent basis as the per tonne milled measure reduces the cost variability associated with varying production levels. Management also uses this measure to determine the economic viability of mining blocks. As each mining block is evaluated based on the net realizable value of each tonne mined, the estimated revenue on a per tonne basis must be in excess of the mine-site cost per tonne milled in order to be economically viable. Management is aware that this per tonne milled measure is impacted by fluctuations in throughput and thus uses this evaluation tool in conjunction with production costs prepared in accordance with IFRS. This measure supplements production cost information prepared in accordance with IFRS and allows investors to distinguish between changes in production costs resulting from changes in production versus changes in operating performance.

                         
Amounts in thousands of Canadian dollars, except per tonne amounts     Q4 2013     Q4 2012     FY 2013     FY 2012
                         
Holt Mine                         
Mine-site costs   $   9,196   $   8,546   $   36,340   $   31,941
Inventory adjustments (1)     85     (230)     770     617
Mine site operating costs   $ 9,281   $   8,316   $   37,110   $   32,558
                         
Divided by tonnes of ore milled     81,791     89,901     369,657     316,486
                         
Mine-site cost per tonne milled   $   113   $   93   $   100   $   103
                         
Holloway Mine                         
Mine-site costs   $  5,580   $   4,119   $   21,247   $   17,513
Inventory adjustments (1)     254     277     401     309
Mine site operating costs   $  5,834   $   4,396   $   21,648   $   17,822
                         
Divided by tonnes of ore milled     47,960     46,606     177,006     191,472
                         
Mine-site cost per tonne milled   $   122   $   94   $   122   $   93
                         
Hislop Mine                        
Mine-site costs   $   6,440   $   6,577   $   21,912   $   24,315
Inventory adjustments (1)     391     (391)     341     (80)
Mine site operating costs   $   6,831   $   6,186   $   22,253   $   24,235
                         
Divided by tonnes of ore milled     98,293     95,516     333,097     389,550
                         
Mine-site cost per tonne milled   $   69   $   65   $   67   $   62
                         
Note:
(1)      Inventory adjustment reflects production costs associated with unsold bullion and in-circuit inventory.

Cash margin from mine operations
Cash margin from mine operations is a non-GAAP measure and does not constitute a measure recognized by IFRS and does not have a standardized meaning defined by IFRS, as well it may not be comparable to information in other gold producers' reports and filings. It is calculated as the difference between gold sales and production costs (comprised of mine-site operating costs and production royalties) per the Company's Financial Statements. The Company believes it illustrates the performance of the Company's operating mines and enables investors to better understand the Company's performance in comparison to other gold producers who present results on a similar basis.

                           
Amounts in thousands of Canadian dollars       Q4 2013     Q4 2012     FY 2013     FY 2012
                           
Gold sales per Financial Statements [A]   $   31,707   $   44,332   $  142,983   $  156,391
                           
Mine site operating costs per Financial Statements       21,216     19,242     79,499     73,769
Production royalties per Financial Statements       2,720     3,590     12,208     12,753
  [B]     23,936     22,832     91,707     86,522
Cash margin from mine operations [A] - [B]   $  7,771   $  21,500   $  51,276   $  69,869
                           
Breakdown of cash margin from mine operations by mines:                          
  Holt Mine     $  6,915   $  14,538   $  38,820   $  41,728
  Holloway Mine       562     3,262     6,309     13,394
  Hislop Mine       294     3,700     6,147     14,747
      $  7,771   $  21,500   $  51,276   $  69,869
                           

 

Average realized price per ounce of gold sold
Average realized price per ounce of gold sold is a non-GAAP measure and does not constitute a measure recognized by IFRS and does not have a standardized meaning defined by IFRS. It is calculated by dividing gold sales proceeds received by the Company for the relevant period by the ounces of gold sold. It may not be comparable to information in other gold producers' reports and filings.

                           
Amounts in thousands of Canadian dollars, except where indicated     Q4 2013     Q4 2012     FY 2013     FY 2012
                           
Gold sales per Financial Statements   $   31,707   $   44,332   $   142,983   $   156,391
Foreign exchange gain realized on the settlement of gold sales     (186)     (146)     (683)     25
Loss on foreign currency derivative cash flow hedges realized     244     -     650     -
      $   31,765   $   44,186   $   142,950   $   156,416
                           
Average USD:CAD exchange rate     1.05     0.99     1.03     1.00
                             
      $   30,193   $   44,545   $   138,869   $   156,750
                           
Divided by gold ounces sold     23,985     26,050     98,654     94,067
                           
Average realized price per ounce of gold sold (US$)   $   1,259   $   1,710   $   1,408   $   1,667
                           

Cash margin per ounce of gold sold
Cash margin per ounce of gold sold is a non-GAAP measure and does not constitute a measure recognized by IFRS and does not have a standardized meaning defined by IFRS. It is calculated by subtracting the total cash cost per ounce of gold sold from the average realized price per ounce of gold sold. It may not be comparable to information in other gold producers' reports and filings.

                             
Amounts in United States dollars       Q4 2013     Q4 2012     FY 2013     FY 2012
                             
Per ounce of gold sold:                          
  Average realized price per ounce of gold sold [A]   $   1,259   $   1,710   $   1,408   $   1,667
  Total cash cost per ounce of gold sold [B]       951       884       902       919
Cash margin per ounce of gold sold [A] - [B]   $  308   $   826   $   506   $   748
                             

 

   

Net cash flow
Net cash flow is a non-GAAP measure and does not constitute a measure recognized by IFRS and does not have a standardized meaning defined by IFRS. It is calculated by taking cash flow from operating activities less cash used in investing activities as reported in the Company's Financial Statements. It may not be comparable to information in other gold producers' reports and filings.

         
Amounts in thousands of Canadian dollars Q4 2013 Q4 2012 FY 2013 FY 2012
           
Cash flow from operating activities per Financial Statements  $ 6,903  $ 21,583  $ 36,531  $ 54,158
Less:        
Cash used in investing activities per Financial Statements 4,128 11,282 27,359 36,599
     $ 2,775  $ 10,301  $ 9,172  $ 17,559
           

 

Operating cash flow per share
Operating cash flow per share is a non-GAAP measure and does not constitute a measure recognized by IFRS and does not have a standardized meaning defined by IFRS. It is calculated by dividing cash flow from operating activities in the Company's Financial Statements by the weighted average number of shares outstanding for each year.  It may not be comparable to information in other gold producers' reports and filings.

         
Amounts in thousands of Canadian dollars, except per share amounts Q4 2013 Q4 2012 FY 2013 FY 2012
         
Cash flow from operating activities per Financial Statements $ 6,903 $ 21,583 $ 36,531 $ 54,158
         
Weighted average number of shares outstanding (000s) 368,295 368,246 368,270 368,246
         
Operating cash flow per share $ 0.02 $ 0.06 $ 0.10 $ 0.15
         

 

Operating and Financial Statistics - Holt Mine

                     
Amounts in thousands of Canadian dollars, except per unit amounts Q4 2013 Q3 2013 Q2 2013 Q1 2013 Q4 2012 Q3 2012 Q2 2012 Q1 2012 FY 2013 FY 2012
                     
Tonnes milled 81,791 104,800 93,081 89,985 89,901 80,219 78,429 67,937 369,657 316,486
Head grade (g/t Au) 5.42 5.25 4.83 5.40 5.51 5.40 4.71 5.36 5.22 5.25
Average mill recovery 95.2% 95.0% 94.9% 94.8% 94.7% 94.4% 94.2% 94.1% 95.0% 94.4%
                     
Gold produced (ounces) 13,579 16,807 13,706 14,806 15,082 13,145 11,193 11,025 58,898 50,445
Commercial gold production sold (ounces) 13,775 16,381 14,230 13,715 15,043 12,373 11,073 10,674 58,101 49,163
                     
Gold sales revenue $ 18,239  $ 22,417  $ 20,865  $ 22,750  $ 25,584  $ 20,000  $ 18,250  $ 18,015 $ 84,271 $ 81,849
                     
Cash margin from mine operations (1) $ 6,915  $ 10,677  $ 9,341  $ 11,887  $ 14,538  $ 9,250  $ 8,886  $ 9,054 $ 38,820 $ 41,728
                     
Mine-site cost per tonne milled (1) $ 114  $ 90  $ 95  $ 106  $ 93  $ 112  $ 96  $ 114 $ 100 $ 103
                     
Total cash cost per ounce of gold sold (US dollars) (1)                    
  Mine cash costs $ 636  $ 548  $ 636  $ 619  $ 573  $ 708  $ 671  $ 670 $ 607 $ 651
  Royalty costs 147 143 155 166 168 165 166 168 152 166
Total cash cost per ounce of gold sold $ 783  $ 691  $ 791  $ 785  $ 741  $ 873  $ 837  $ 838 $ 759  $ 817
                     
Capital expenditures $ 2,991  $ 3,104  $ 3,487  $ 3,383  $ 4,536  $ 4,990  $ 5,036  $ 3,177 $ 12,965  $ 17,739
                     
Depreciation and depletion expense  $ 2,602  $ 2,338  $ 2,667  $ 2,709  $ 2,979  $ 2,293  $ 1,804  $ 1,549 $ 10,316  $ 8,625
                     
Notes:
(1) Total cash cost per ounce of gold sold, mine-site cost per tonne milled and cash margin from mine operations are non-GAAP measures and are not necessarily comparable to similarly titled measures of other companies due to potential inconsistencies in the method of calculation (see non-GAAP section for an explanation and reconciliation of non-GAAP measurements).
   

Operating and Financial Statistics - Holloway Mine

                                           
Amounts in thousands of Canadian dollars, except per unit amounts Q4 2013 Q3 2013 Q2 2013 Q1 2013 Q4 2012 Q3 2012 Q2 2012 Q1 2012 FY 2013 FY 2012
                     
Tonnes milled 47,960 40,152 45,642 43,252 46,606 44,546 53,169 47,151 177,006 191,472
Head grade (g/t Au) 4.13 4.02 4.32 4.04 3.90 4.15 3.80 3.77 4.13 3.90
Average mill recovery 88.9% 89.7% 92.6% 91.5% 89.7% 91.0% 91.2% 88.6% 90.7% 90.2%
                     
Gold produced (ounces) 5,654 4,662 5,874 5,140 5,240 5,408 5,923 5,058 21,330 21,629
Commercial gold production sold (ounces) 5,105 5,741 5,175 5,126 4,981 5,749 5,744 4,907 21,147 21,381
                     
Gold sales revenue  $ 6,734  $ 7,831  $ 7,568  $ 8,521  $ 8,473  $ 9,267  $ 9,467  $ 8,275 $ 30,654  $ 35,482
                     
Cash margin from mine operations (1) $ 562  $ 1,561  $ 1,795  $ 2,391  $ 3,262  $ 3,835  $ 3,805  $ 2,492 $ 6,309  $ 13,394
                     
Mine-site cost per tonne milled (1) $ 122  $ 131  $ 113  $ 124  $ 94  $ 92  $ 82  $ 105 $ 122  $ 93
                     
Total cash cost per ounce of gold sold (US dollars)(1)                    
  Mine cash costs $ 1,041  $ 938  $ 947  $ 977  $ 834  $ 746  $ 771  $ 948 $ 975  $ 820
  Royalty costs (2) 111 114 143 209 221 204 205 209 143 209
Total cash cost per ounce of gold sold $ 1,152  $ 1,052  $ 1,090  $ 1,186  $ 1,055  $ 950  $ 976  $ 1,157 $ 1,118  $ 1,029
                     
Capital expenditures $ 130  $ 816  $ 1,189  $ 912  $ 1,443  $ 1,794  $ 2,539  $ 4,342 $ 3,047  $ 10,118
                     
Depreciation and depletion expense $ 4,848  $ 4,843  $ 2,149  $ 2,144  $ 1,970  $ 2,346  $ 2,181  $ 1,808 $ 13,984  $ 8,305
                     
Notes:
(1) Total cash cost per ounce of gold sold, mine-site cost per tonne milled and cash margin from mine operations, are non-GAAP measures and are not necessarily comparable to similarly titled measures of other companies due to potential inconsistencies in the method of calculation (see non-GAAP section for an explanation and reconciliation of non-GAAP measurements).
(2) In Q1 2012, the Company accrued a royalty liability of $99 at Holloway, which was incurred during the period from August 2011 to December 2011. This amount has been retroactively applied to the calculation of the total cash cost per ounce of gold sold for each of these quarters, respectively.
   

Operating and Financial Statistics - Hislop Mine

                     
Amounts in thousands of Canadian dollars, except per unit amounts Q4 2013 Q3 2013 Q2 2013 Q1 2013 Q4 2012 Q3 2012 Q2 2012 Q1 2012 FY 2013 FY 2012
                                         
Overburden stripped (m3)   19,646   43,094   64,807   -   -   (32,205)   29,236   4,212   127,547   1,243
                                         
Tonnes mined (ore)   35,540   92,378   105,900   82,361   101,617   99,287   76,764   118,918   316,179   396,586
(waste)   377,627   389,978   312,705   267,906   453,629   513,988   536,015   680,221   1,348,216   2,183,853
    413,167   482,356   418,605   350,267   555,246   613,275   612,779   799,139   1,664,395   2,580,439
                                         
Waste-to-Ore Ratio   10.6   4.2   3.0   3.3   4.5   5.2   7.0   5.7   4.3   5.5
                                         
Tonnes milled   98,293   66,940   88,093   79,771   95,516   102,191   97,183   94,660   333,097   389,550
Head grade (g/t Au)   1.96   2.27   2.43   2.14   2.22   2.53   2.21   1.88   2.19   2.21
Average mill recovery   81.6%   81.0%   84.0%   82.1%   80.8%   86.5%   85.6%   86.4%   82.3%   84.8%
                                         
Gold produced (ounces)   5,068   3,965   5,773   4,515   5,507   7,189   5,899   4,935   19,321   23,530
Commercial gold production sold (ounces)   5,105   4,478   5,655   4,168   6,026   7,075   5,678   4,744   19,406   23,523
                                         
Gold sales revenue  $ 6,734  $ 6,115  $ 8,290  $ 6,919  $ 10,275  $ 11,423  $ 9,356  $ 8,006  $ 28,058  $ 39,060
                                         
Cash margin from mine operations (1)  $ 294  $ 1,143  $ 2,579  $ 2,131  $ 3,700  $ 5,165  $ 3,505  $ 2,377  $ 6,147  $ 14,747
                                         
Mine-site cost per tonne milled (1)  $ 69  $ 67  $ 64  $ 67  $ 65  $ 62  $ 61  $ 61  $ 67  $ 62
                                         
Total cash cost per ounce of gold sold (1)(2)  $ 1,202  $ 1,070  $ 987  $ 1,139  $ 1,100  $ 889  $ 1,020  $ 1,185  $ 1,096  $ 1,034
                                         
Capital expenditures  $ -  $ 20  $ -  $ -  $ (39)  $ 390  $ 970  $ 463  $ 20  $ 1,784
                                         
Depreciation and depletion expense  $ 2,186  $ 2,364  $ 4,252  $ 3,224  $ 1,981  $ 1,644  $ 1,363  $ 885  $ 12,026  $ 5,873
                                         
Notes:
(1) Total cash cost per ounce of gold sold, mine-site cost per tonne milled and cash margin from mine operations are non-GAAP measures and are not necessarily comparable to similarly titled measures of other companies due to potential inconsistencies in the method of calculation (see non-GAAP section for an explanation and reconciliation of non-GAAP measurements).
(2) Hislop is subject to a 4% net smelter return royalty, which includes a minimum Advance royalty payment obligation (see "Gold-linked Liabilities" in the Company's Q4 and annual 2013 MD&A).
   

Statements of Operations (unaudited)
St Andrew Goldfields Ltd.
Expressed in thousands of Canadian dollars except per share information

             
             
    Three months ended December 31,    Twelve months ended December 31, 
    2013 2012   2013 2012
             
             
Gold sales $ 31,707 $ 44,332    $ 142,983  $ 156,391
             
Operating costs and expenses:          
  Mine site operating 21,216 19,242   79,499 73,769
  Production royalty 2,720 3,590   12,208 12,753
  Site maintenance 9 232   182 684
  Exploration 929 2,149   7,971 7,040
  Corporate administration 1,703 2,340   7,148 7,491
  Depreciation and depletion 9,862 7,127   37,220 23,481
  Write-down of mining equipment and investment - -   994 -
    36,439 34,680   145,222 125,218
Operating income (loss) (4,732) 9,652   (2,239) 31,173
             
Finance costs 461 507   1,960 2,687
Mark-to-market (gain) loss on gold-linked liabilities (594) (151)   (1,596) 1,667
Mark-to-market (gain) loss on foreign currency derivatives 91 333   1,065 (2,061)
Foreign exchange (gain) loss 864 (4)   1,455 323
Impairment loss on available-for-sale investments 67 825   567 825
Gain (loss) on divestiture of non-core assets - 272   - (247)
Finance income and other (79) (77)   (308) (260)
    810 1,705   3,143 2,934
Income (loss) before taxes (5,542) 7,947   (5,382) 28,239
Net deferred tax expense (recovery) (1,177) (4,685)   (364) 2,247
Net income (loss) attributable to shareholders $ (4,365) $ 12,632   $ (5,018)  $ 25,992
             
Other comprehensive income (loss)          
Unrealized loss on available-for-sale investments (nil tax effect) (75) (193)   (151) (596)
Reclassification adjustment for impairment loss on available-for-sale investments (nil tax effect) 67 825   567 825
Unrealized gain (loss) on derivatives designated as cash flow hedges, net of tax ($48),  $86,  $191,  ($144) 142 (258)   (574) 433
Reclassification adjustment for unrealized loss on the ineffective portion of cash flow hedges, net of tax $64 (192) -   - -
    (58) 374   (158) 662
Comprehensive income (loss) for the period $ (4,423) $ 13,006   $ (5,176)  $ 26,654
             
Basic and diluted income (loss) per share  $ (0.01) $ 0.03   $ (0.01)  $ 0.07
             
Weighted average number of shares outstanding (000's)          
Basic   368,295 368,246   368,270 368,246
Diluted   368,295 368,692   368,270 368,604
             

 

Statements of Cash Flows (unaudited)
St Andrew Goldfields Ltd.
Expressed in thousands of Canadian dollars

               
               
      Three months ended December 31,    Twelve months ended December 31, 
      2013 2012   2013 2012
               
Operating activities:          
  Net Income (loss) for the period $ (4,365)  $ 12,632   $ (5,018)  $ 25,992
  Items not affecting cash:          
    Net deferred tax expense (recovery) (1,177) (4,685)   (364) 2,247
    Mark-to-market loss (gain) on gold-linked liabilities (594) (151)   (1,596) 1,667
    Non-cash interest 351 369   1,434 2,269
    Mark-to-market loss (gain) on foreign currency derivatives 91 333   1,065 (2,061)
    Depreciation and depletion 9,862 7,127   37,220 23,481
    Write-down of mining equipment and investment - -   994 -
    Impairment loss on available-for-sale investments 67 825   567 825
    Loss (gain) on divestiture of non-core assets - 272   - (247)
    Share-based payments 386 272   1,209 1,018
    Net change in non-cash operating working capital and other   2,382 4,673   1,474 (660)
    Interest paid   (100) (131)   (454) (373)
    Cash provided by operating activities 6,903 21,583   36,531 54,158
Investing activities:          
    Additions to exploration and evaluation assets (783) (3,953)   (7,014) (6,774)
    Mine development expenditures (2,056) (4,038)   (12,013) (21,092)
    Additions to plant and equipment (1,295) (3,893)   (6,014) (11,411)
    Amounts payable on capital additions - 837   (1,925) 1,136
    Reclamation costs and other (17) (235)   (393) (143)
    Cash collateralized for banking facilities 23 -   - 1,685
    Cash used in investing activities (4,128) (11,282)   (27,359) (36,599)
Financing activities:          
    Advance royalty payments (416) (506)   (1,799) (1,993)
    Capital lease payments (261) (11)   (710) (44)
    Repayment of term credit facility - -   (4,092) (1,966)
    Proceeds from term credit facility - -   - 14,975
    Bank facility transaction costs - -   - (644)
    Repayment of Gold Notes - -   - (14,775)
    Cash used in financing activities (677) (517)   (6,601) (4,447)
               
Effects of exchange rate changes on cash and cash equivalents 33 154   463 (73)
Increase in cash and cash equivalents 2,131 9,938   3,034 13,039
Cash and cash equivalents, beginning of period 31,559 20,718   30,656 17,617
Cash and cash equivalents, end of period $ 33,690  $ 30,656   $ 33,690  $ 30,656
               

 

Balance Sheets
St Andrew Goldfields Ltd.
Expressed in thousands of Canadian dollars

       
      December 31, 2013   December 31, 2012
           
Assets        
Current assets:        
  Cash and cash equivalents $ 33,690 $ 30,656
  Accounts receivable   951   4,475
  Inventories   8,638   8,568
  Derivative assets   -   725
  Prepayments and other assets   193   237
      43,472   44,661
           
Exploration and evaluation assets   38,390   31,382
Producing properties   49,751   64,363
Plant and equipment   49,025   50,537
Reclamation deposits   8,373   8,307
Restricted cash   1,695   1,695
Deferred tax assets   20,228   18,064
Other assets   136   739
    $ 211,070 $ 219,748
           
Liabilities and Shareholders' Equity        
Current liabilities:        
  Accounts payable and other liabilities $ 9,793 $ 14,042
  Employee-related liabilities   5,241   4,613
  Royalties payable   956   1,254
  Provisions   777   669
  Derivative liabilities   1,105   -
  Current portion of long-term debt   11,754   5,873
      29,626   26,451
           
Long-term debt   3,295   12,896
Asset retirement obligations   12,023   11,743
Deferred tax liabilities   2,330   721
      47,274   51,811
           
Shareholders' equity:        
  Share capital    98,575   98,556
  Contributed surplus   20,317   19,892
  Stock options    4,267   3,676
  Retained earnings    40,778   45,796
  Accumulated other comprehensive income (loss)   (141)   17
      163,796   167,937
    $ 211,070 $ 219,748
           

 

 

SOURCE St Andrew Goldfields Ltd.

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