Business
Goldgroup Increases Gold Production By 39% and Revenue By 59%
Goldgroup Increases Gold Production By 39% and Revenue By 59%
About this update from Goldgroup Mining Inc.
[{"type":"text","content":"\n\n\n\n May 18, 2010 (Canada NewsWire Group) -- Records Earnings of US$708,821 in Q1 2010\n\n Goldgroup Mining Inc. (TSX: GGA) ("Goldgroup" or the "Company") today announced its unaudited financial results for the first quarter ended March 31, 2010. The consolidated interim financial statements along with management's discussion and analysis are available on SEDAR at www.sedar.com and on the Company's website at www.goldgroupmining.com. All currency references are to United States dollars unless otherwise noted.\n\n\n >\n\n\nCommentary\n\nKeith Piggott, Chief Executive Officer of Goldgroup, stated:\n"We are extremely pleased with the Company's first quarter results which resulted in our highest ever quarterly production, net earnings supported by record metal sales revenue and cash flow from operations before changes in non-cash working capital. Goldgroup is scheduled to produce between 25,000 and 30,000 ounces of gold in 2010 and is realizing record gold sale prices. With the additional production upgrades being implemented at the Cerro Colorado mine, the Company expects to continue delivering strong operating results. Goldgroup became debt free during the quarter and now, having completed the business combination with Goldgroup Resources Inc. on April 30th, the Company is well positioned as a junior gold producer possessing one of the best project portfolios in Mexico relative to our peers."\n\nSummary of financial and operating results\n\n\n >\n\n\nNet earnings for the first quarter of 2010 were $708,821 compared to $611,837 during the first quarter of 2009.\nRevenue from metal sales increased in the first quarter of 2009 compared to the first quarter of 2009 from $4,496,701 to $7,168,658 or 59%. Gold ounces sold increased 30% from 4,911 to 6,375 and the average realized price of gold sold rose 22% from $909 to $1,112 per ounce.\nFirst quarter 2010 production was 6,382 ounces compared to 4,599 in the first quarter of 2009 or an increase of 39%. Cost of sales was $782 per ounce sold for the first quarter of 2010 compared to $572 for the first quarter of 2009. Much of the increase was due to the rental of a secondary crusher, increased cyanide use associated with leaching ore on two leach pads and increased maintenance and labour costs associated with a larger fleet of mining equipment. In April 2...