Santa Fe Gold Reports 49% Increase in Revenues to $14.6 Million for 2013

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Santa Fe Gold Reports 49% Increase in Revenues to $14.6 Million for 2013

ALBUQUERQUE, N.M.--(BUSINESS WIRE)-- Santa Fe Gold Corporation (OTCBB: SFEG) today announced financial results for its fiscal year ended June 30, 2013. Santa Fe Gold reported revenues of $14.6 million for the year ended June 30, 2013, which represents an increase of 49% over 2012. The Company's gross profit (or earnings from mining operations) decreased by 32% to $2.4 million in 2013. The full version of the financial statements and management's discussion and analysis can be viewed on the Company's website at or at

"We are pleased to be able to announce continued significant growth in revenues and continued positive earnings from mining operations despite lower metal prices," commented Pierce Carson, President and CEO. "We also are excited about our growth prospects for 2014. The recent developments at Summit are expected to contribute to higher grades and increased production in 2014."


  • 49% increase in revenues to a record $14.6 million.
  • 32% decrease in gross profit (earnings from mining operations) to $2.4 million.


For 2014, the Company expects to experience continued growth, in part due to the following positive developments:

  • Underground advancement has reached the upper part of the main Summit ore body. As a result, the Company is now in a position to access higher silver and gold grades.
  • Discussions are underway with mining contractors to increase tonnage production rates to 12,000 tons per month. Metal output in calendar 2014 is anticipated to increase substantially with increased tonnage production and higher grades from the main ore body.
  • An independent engineering assessment of the Ortiz gold project concludes the project could produce 874,000 ounces of gold from two open cut mines over an operating life ranging from 9 to 18 years depending on the development sequence employed. At a three-year moving average gold price of $1550 per ounce, revenues would total $1.35 billion and cash flows would approximate $350 million net of all costs including royalties, operating costs, taxes and capital expenses. Baseline environmental work is continuing in preparation for permit application.

About Santa Fe Gold

Santa Fe Gold is a U.S.-based mining enterprise with producing mining operations in Lordsburg, New Mexico, and exploration and development projects in southwestern New Mexico, north-central New Mexico and Arizona. Santa Fe controls: (i) the Summit mine and Lordsburg mill in southwestern New Mexico, which began commercial production in 2012; (ii) a substantial land position near the Lordsburg mill, comprising the core of the Lordsburg Mining District; (iii) the Mogollon gold-silver project, within trucking distance of the Lordsburg mill; (iv) the Ortiz gold property in north-central New Mexico; (v) the Black Canyon mica deposit near Phoenix, Arizona; and (vi) a deposit of micaceous iron oxide (MIO) in western Arizona. Santa Fe Gold intends to build a portfolio of high-quality, diversified mineral assets with an emphasis on precious metals.

To learn more about Santa Fe Gold, visit

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable US securities legislation. All statements, other than statements of historical fact, included herein are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward-looking statements as a result of various factors, including, but not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, variations in the market price of any mineral products the Company may produce or plan to produce, the Company's inability to obtain any necessary permits, consents or authorizations required for its activities, the Company's inability to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies, and other risks and uncertainties disclosed in the Company's Annual Report on Form 10-K for the year ended June 30, 2012 and its most recent quarterly reports filed with the United States Securities and Exchange Commission (the "SEC"), and other information released by the Company and filed with the appropriate regulatory agencies. All of the Company's US public disclosure filings may be accessed via and readers are urged to review these materials.

See Accompanying Tables

The following information summarizes the financial condition of Santa Fe Gold Corporation at June 30, 2013, including its balance sheets for the twelve months ended June 30, 2013 and 2012, respectively, and its results of operations and cash flows for the twelve months ended June 30, 2013, 2012 and 2011, respectively. The summary data are taken from our audited financial statements contained in our annual reports on Form 10-K for the financial years ended June 30, 2013, 2012 and 2011 but do not include the footnotes and other information that is included in the complete financial statements. Readers are urged to review the Company's Form 10-K in its entirety, which can be found on the SEC's website at .




  June 30,  
ASSETS   2013         2012  
Cash and cash equivalents $ 115,094 $ 614,385
Accounts receivable 273,797 2,442,399
Inventory 241,214 951,458
Marketable securities - 48,776
Prepaid expenses and other current assets   457,377         329,466  
Total Current Assets   1,087,482         4,386,484  
MINERAL PROPERTIES   599,897         579,000  
PROPERTY, EQUIPMENT AND MINE DEVELOPMENT, net   21,726,196         24,139,166  
Idle equipment, net 1,223,528 1,223,528
Restricted cash 231,716 231,716
Mogollon option costs 761,914 -
Deferred financing costs, net   323,348         1,102,070  
Total Other Assets   2,540,506         2,557,314  
Total Assets $ 25,954,081       $ 31,661,964  
Accounts payable $ 2,748,549 $ 2,199,026
Accrued liabilities 4,606,409 2,505,785
Derivative instrument liabilities 496,920 1,026,765
Current portion, notes payable 7,185,877 9,931,468

Current portion, Senior subordinated convertible notes payable, net of
discount of $-0- and $5,564, respectively

- 444,436
Current portion, capital leases - 41,487
Completion guarantee payable   3,359,873         3,359,873  
Total Current Liabilities 18,397,628 19,508,840
Convertible notes payable, net of discount of $60,482 and $-0-, respectively 3,951,310 -
Notes payable, net of current portion 330,192 936,996
Capital leases, net of current portion - 3,545
Asset retirement obligation   167,746         159,048  
Total Liabilities   22,846,876         20,608,429  

Common stock, $.002 par value, 300,000,000 shares authorized; 117,599,598
and 111,143,684 shares issued and outstanding, respectively

235,199 222,287
Additional paid in capital 77,210,649 74,846,754
Accumulated (deficit) (74,338,643 ) (63,966,224 )
Accumulated other comprehensive (loss)   -         (49,282 )
Total Stockholders' Equity   3,107,205         11,053,535  
Total Liabilities and Equity $ 25,954,081       $ 31,661,964  



  For the Years Ended June 30,  
  2013         2012         2011  
SALES, Net $ 14,571,973       $ 9,762,054       $ 5,904,640  
Costs applicable to sales 12,185,244 6,274,033 3,180,105
Exploration and mine related costs 2,012,785 371,584 309,399
General and administrative 3,998,392 3,710,921 3,002,955
Depreciation and amortization 4,149,034 4,039,875 2,322,736
Accretion of asset retirement obligation   8,698         9,812         -  
  22,354,153         14,406,225         8,815,195  
LOSS FROM OPERATIONS   (7,782,180 )       (4,644,171 )       (2,910,555 )
Interest income - 9,108 11,645
Foreign currency translation 440,449 - -
Miscellaneous income 23,608 5,328 -
Other expense - (1,245,694 ) -
Gain on derivative instrument liabilities 1,617,987 6,568,533 1,652,961
Accretion of discounts on notes payable (21,918 ) (1,066,843 ) (1,275,811 )
Financing costs - commodity supply agreements (2,008,730 ) (1,709,472 ) (1,260,257 )
Interest expense   (2,641,635 )       (2,136,470 )       (835,076 )
  (2,590,239 )       424,490         (1,706,538 )
LOSS BEFORE PROVISION FOR INCOME TAXES (10,372,419 ) (4,219,681 ) (4,617,093 )
PROVISION FOR INCOME TAXES   -         -         -  
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