Gammon Gold Reports Second Quarter Financial Results, the Seventh Consecutive Quarter of Positive Operating Cash Flow

About this update from Auq Gold Mining Inc.

[{"type":"text","content":"\n\n\n\nHALIFAX, Aug. 13 /CNW/ - Gammon Gold Inc. ("Gammon Gold") (TSX:GAM and\nNYSE:GRS) announces its unaudited financial results for the three and six\nmonths ended June 30, 2009. All figures reported are in U.S. dollars unless\notherwise indicated.\n\n\nSecond Quarter Financial Highlights\n\n\nFor the three-month period ended June 30, 2009:\n\n\n- Revenues of $43.3 million\n- Cash from operations of $13.7 million, the seventh consecutive quarter\n of positive operating cash flow\n- Earnings before other items of $3.4 million or $0.03 per share\n- A $7 million foreign exchange loss resulting from the strengthening of\n the Mexican peso and Canadian dollar relative to the U.S. dollar\n negatively impacted earnings and contributed to a net loss of\n $7.6 million, or $0.06 per share, for the quarter\n- The Company ended the quarter with a strong cash position of\n $22 million and as a result, the Company's net debt position, defined\n as long-term debt and capital leases less cash, improved to\n $21.5 million\n- Successfully renegotiated the amendment of its $50 million credit\n facility and received a waiver of first quarter covenant violations and\n thereby restored full access to the undrawn portion of the facility\n\nFor the six-month period ended June 30, 2009:\n\n- Revenues of $90.7 million\n- Cash from operations of $32.7 million\n- Earnings before other items of $8 million or $0.07 per share\n- A $5.1 million foreign exchange loss recognized in the period\n contributed to a net loss of $4.7 million or $0.04 per share for the\n period\n\nSecond Quarter Operational Highlights\n\n- Production of 31,115 ounces of gold, 1,083,471 ounces of silver or\n 47,123 gold equivalent ounces, using the gold-to-silver ratio of 67:1\n experienced in the quarter. Using the Company's long term gold-to-\n silver ratio of 55:1, gold equivalent production was 50,814 ounces.\n While production at Ocampo during the quarter was in line with Q1 2009\n production levels, production at El Cubo was negatively impacted by a\n 7-week labour disruption that adversely affected consolidated\n production during the quarter.\n\n- Cash costs for the quarter were $453 per gold equivalent ounce, using\n the gold-to-silver ratio of 67:1 experienced during the quarter. Using\n the Company's long term gold-to-silver ratio of 55:1, cash costs were\n $420...

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