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Gammon Gold Reports Second Quarter Financial Results and Reports Positive Earnings Before Other Items with Improving Operations Reported from the Ocampo Mine
Gammon Gold Reports Second Quarter Financial Results and Reports Positive Earnings Before Other I...
About this update from Auq Gold Mining Inc.
[{"type":"text","content":"\nGammon Gold Reports Second Quarter Financial Results and Reports Positive Earnings Before Other Items with Improving Operations Reported from the Ocampo Mine\n\n\n Aug. 12, 2010 (Newsfile Corp.) -- Toronto, Ontario--(August 10, 2010) - Gammon Gold Inc. (“Gammon”)(TSX:GAM and NYSE:GRS): announces its financial results for the three and six months ended June 30, 2010. All figures reported are in U.S. dollars unless otherwise indicated. Second Quarter Key Highlights In the second quarter, the Company reported its eleventh consecutive quarter of positive operating cash flow. On a consolidated basis, the Company reported $15.7 million in operating cash flow, or $0.11 per share, including $19.5 million, or $0.14 per share, generated by the improving operations at the Ocampo mine. In the second quarter, the Company reported earnings before other items of $11.4 million, or $0.08 per share (net of a charge of $1.7 million, or $0.01 per share, in accrued severance charges associated with the El Cubo mine), as compared to $3.4 million, or $0.03 per share, in the same period in 2009, an $8.0 million, or $0.05 per share, improvement over the same period in 2009. The Company ended the quarter with cash of $102.7 million, an $80.8 million increase in cash on hand since June 30, 2009. As a result of the Company’s improved cash flow profile, the Company’s Balance Sheet has been significantly strengthened, which provides management with considerable flexibility in advancing additional business development plans. During the second quarter, the Ocampo mine produced 44,363 gold equivalent(*) ounces (24,963 gold ounces and 1,066,998 silver ounces). During the second quarter, cash costs at Ocampo were $430 per gold equivalent(*) ounce. Utilizing Ocampo’s silver revenues as a by-product cost credit, second quarter total cash costs were negative $33 per gold ounce sold. Ocampo Operations Improving As reported on July 15, 2010, the Ocampo mine reported month-to-month improvements in most key operating metrics during the second quarter. During the first quarter a mill redundancy program was launched at Ocampo that is designed to help improve recoveries and ensure uninterrupted operations during periods of required maintenance. As part of the advancement of this program the seventh thickener was commissioned in early Ju...