Calgary, Alberta–(Newsfile Corp. – December 28, 2022) – Antioquia Gold Inc. (TSXV: AGD) (OTC Pink: AGDXF) (“Antioquia Gold” or the “Corporation”) is pleased to announce a summary of its financial results for the third quarter ended September 30, 2022. All amounts are in Canadian dollars, unless otherwise indicated.
For the third quarter of 2022, the company has shown an improvement in its financial performance in comparison to the previous period for the nine months. The Company has continued improvements in mine planning and mining operations, process plant optimization and increased processing of third-party mineralized material.
The main operational and financial results for the third quarter 2022 are as follows (1):
-Revenue of $22.37 million for the third quarter of 2022 compared to $27.55 million in the same period of 2021. Variation due to the decrease in the average realized gold price from $2,044 per ounce for the third quarter of 2022 compared to $2,180 in the same period of 2021.
– Gold production for the third quarter of 2022 was 11,254 ounces compared to 11,281 ounces for the third quarter of 2021 (a 0.2% decrease).
Adjusted EBITDA (2) for the third quarter of 2022 was $2.9M compared to $9.9M for the third quarter of 2021 (a 70.3% decrease). Adjusted EBITDA (2) for the period ended September of 2022 was $18.3M compared to $16.3M for the period ended September of 2021 (a 12.3% increase).
– Net loss for the third quarter of 2022 was $2.5M compared to an income of $3M for the third quarter of 2021.
– The average realized gold price (2) for the third quarter of 2022 was US$1,566/ounce compared to US$1,730/ounce for the third quarter of 2021 (a 9.5% decrease).
– Cash cost per ounce sold (2) for the third quarter of 2022 was US$1,303 compared to $1,039 for the third quarter 2021 (a 25.4% decrease).
– AISC per ounce sold (2) for the third quarter of 2022 was US$1,543 compared to $1,115 for the third quarter of 2021 (a 38.4% increase).
Cisneros Project
The Company owns and operates the Cisneros Project, located in the Municipality of Santo Domingo (Antioquia, Colombia) and approximately 70-km from the city of Medellin. The Cisneros Project consists of two operating, underground mines, Guaico and Guayabito and a processing plant with a newly expanded capacity of 1,200-tonnes/day, tailings deposit and a 10 km pipeline. Flotation and gravity concentrates are produced and sold through internationally recognized trading houses.
The Company controls the mineral rights to a large, consolidated land package of approximately 17,000 hectares and maintains an active exploration program. This program helps to identify and confirm resources around current mines.
Of the total ounces of gold produced, 70% came from the Company’s Guaico-Guayabito mine production the remaining 30% corresponds to mineralized material acquired from third parties.
Readers should be cautioned that the Corporation’s decision to move forward with the construction and production of the Cisneros Mine is not based on the results of any pre-feasibility study or feasibility study of mineral resources demonstrating economic or technical viability. Readers are referred to the Cisneros Report for details on independently verified mineral resources on the Cisneros Project. Since 2013, the Corporation has undertaken exploration and development activities; and after taking into consideration
various factors, including but not limited to: the exploration and development results to date, technical information developed internally, the availability of funding, the low starting costs as estimated internally by the Corporation’s management, the Corporation is of the view that the establishment of mineral reserves, the commissioning of a pre-feasibility study or feasibility study at this stage is not necessary, and that the most responsible utilization of the Corporation’s resources is to proceed with the development and construction of the mine. Readers are cautioned that due to the lack of pre-feasibility study or feasibility study, there is increased uncertainty and higher risk of economic and technical failure associated with the Corporation’s decision. In particular, there is additional risk that mineral grades will be lower than expected, the risk that construction or ongoing mining operations will be more difficult or more expensive than management expected. Production and economic variables may vary considerably, due to the absence of a detailed economic and technical analysis in accordance with NI 43-101. Project failure may materially adversely impact the Corporation’s future profitability, its ability to
repay existing loans, and its overall ability to continue as a going concern.