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Gammon Gold Reports Third Quarter Financial Results and the Eighth Consecutive Quarter of Positive Operating Cash Flow
Gammon Gold Reports Third Quarter Financial Results and the Eighth Consecutive Quarter of Positiv...
About this update from Auq Gold Mining Inc.
[{"type":"text","content":"\n\n\n\nNov. 12, 2009 (Canada NewsWire Group) -- HALIFAX, Nov. 12 /CNW/ -- Gammon Gold Inc. (\"Gammon\") (TSX:GAM and NYSE:GRS): announces its unaudited financial results for the three and nine months ended September 30, 2009. All figures reported are in U.S. dollars unless otherwise indicated.Q3 & Subsequent Key Highlights- The Company has reported its eighth consecutive quarter of positiveoperating cash flow. During the third quarter the Company has generated$13.9 million in operating cash flow primarily as a result of theongoing operational enhancements achieved throughout the Company'soperations.- Adjusted earnings of $0.05 per share prior to foreign exchange lossesand severance costs and stock-based compensation associated withchanges to executive management.- During the quarter, the Company produced 31,537 gold ounces and1,265,645 silver ounces, or 51,047 gold equivalent ounces at agold-to-silver ratio of 64:1. Assuming the Company's long-termgold-to-silver ratio of 55:1, the Company produced 54,549 goldequivalent ounces.- During the quarter, cash costs were $500 per gold equivalent ounce, a$257, or 34%, decrease over the same period in 2008. Assuming theCompany's long-term gold-to-silver ratio of 55:1, cash costs declinedby $266 per gold equivalent ounce, or 36%, over the same period in2008.- The Company ended the quarter with cash of $12.3 million, a$9.0 million increase in cash on hand since December 31, 2008. As aresult, net debt improved in the first nine months of 2009 by$8.6 million to $26.6 million at September 30, 2009.- During the quarter the Company announced the retirement and rescissionof all existing compensatory retirement entitlements with Mr. FredGeorge as President, Chairman and member of the Board of Directors thatwas effective October 13, 2009. Mr. René Marion, the Company's ChiefExecutive Officer, was subsequently appointed as President and remainsas Chief Executive Officer. Mr. Ron Smith, an independent director,will temporarily assume the position of interim Chair of the Board ofDirectors. Also on September 22, 2009 the Company announced theresignation of Mr. Canek Rangel as a member of the Board of Directors.Following the resignations of Mr. George and Mr. Rangel, the NominatingCommittee of the Board of Directors began the process of identifyingpotential new independent members with the objecti...