ALBUQUERQUE, N.M., Feb 09, 2012 (BUSINESS WIRE) — Santa Fe Gold Corporation is pleased to announce the financial results for its 2012 fiscal first half ending December 31, 2011.
Continued Growth in Revenue
Santa Fe recorded revenue of $4,469,219 for its 2012 fiscal first half ended December 31, 2011, up 257% from revenue of $1,250,262 in the corresponding first half of fiscal 2011. The increase of $3,218,957 is due to increased production at the Summit mine and related shipments of precious metals concentrate, flux material and the sale of refined gold. Full financial results are available in the Company’s Form 10-Q filed with the SEC and available at www.sec.gov .
“We continue to increase production at our Summit silver-gold mine in New Mexico and are closer to our target of commercial production, which we expect to achieve during the current quarter,” said Pierce Carson, CEO of Santa Fe. “With higher production and continued strength in gold and silver prices, we are optimistic that we will see even stronger operating results in the coming quarters.”
Columbus Silver Acquisition
Santa Fe continues to make progress on its pending acquisition of Columbus Silver Corporation pursuant to which Santa Fe will conditionally acquire Columbus Silver for cash. The company expects the transaction to be concluded in March or April 2012.
About Santa Fe Gold:
Santa Fe Gold is a U.S.-based mining and exploration enterprise focused on acquiring and developing gold, silver, copper and industrial mineral properties. Santa Fe controls: (i) the Summit mine and Lordsburg mill in southwestern New Mexico, which began processing operations in 2010; (ii) a substantial land position near the Lordsburg mill, comprising the core of the Lordsburg Mining District; (iii) the Ortiz gold property in north-central New Mexico; (iv) the Black Canyon mica deposit and processing equipment near Phoenix, Arizona; and (v) 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 www.santafegoldcorp.com .
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 and Canadian 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, 2011 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 www.sec.gov and its Canadian public disclosure filings may be accessed via www.sedar.com , and readers are urged to review these materials.
The following information summarizes the financial condition of Santa Fe Gold Corporation at December 31, 2011, including its balance sheets at December 31, 2011 and June 30, 2011, respectively, its results of operations for the three months and six months ended December 31, 2011 and 2010, respectively, and its cash flows for the six months ended December 31, 2011 and 2010. The summary data for the three and six months ended December 31, 2011 and 2010, respectively, are unaudited; the summary data for the financial year ended June 30, 2011 are taken from our audited financial statements contained in our annual report on Form 10-K for the financial year ended June 30, 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 www.sec.gov .
SANTA FE GOLD CORPORATION
CONSOLIDATED BALANCE SHEETS
December 31, June 30,
ASSETS 2011 2011
———————- ——————
(Unaudited)
CURRENT ASSETS:
Cash and cash equivalents $ 3,480,057 $ 172,531
Accounts receivable 1,769,830 2,230,605
Inventory 109,212 175,578
Marketable securities 176,241 97,260
Prepaid expenses and other current assets 801,287 279,064
Note receivable and accrued interest 207,511 –
———– ———–
Total Current Assets 6,544,138 2,955,038
———– ———–
MINERAL PROPERTIES 579,000 579,000
———– ———–
PROPERTY, PLANT AND EQUIPMENT,
net of depreciation of $4,326,478 and $3,090,516, respectively 12,409,643 13,104,215
———– ———–
OTHER ASSETS:
Construction in process 11,096,009 8,427,113
Idle equipment, net 1,223,528 1,223,528
Note receivable and accrued interest – 203,422
Restricted cash 231,716 410,374
Deferred financing costs 504,387 314,700
———– ———–
Total Other Assets 13,055,640 10,579,137
———– ———–
Total Assets $ 32,588,421 $ 27,217,390
==== =========== == ===========
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 1,054,548 $ 1,090,907
Accrued liabilities 1,450,826 1,976,751
Derivative instrument liabilities 4,797,174 8,973,066
Current portion, notes payable, net of discount of $440,766 and 4,030,024 78,384
$-0-, respectively
Current portion, capital leases 40,276 83,856
437,181 –
Senior subordinated convertible notes payable, net of discount of
$12,819 and $-0-, respectively
Deferred revenue 3,159,612 3,611,266
Accrued interest payable 395,628 255,109
———– ———–
Total Current Liabilities 15,365,269 16,069,339
LONG TERM LIABILITIES:
Notes payable, net discount of $125,135 and $-0-, respectively 5,543,045 58,957
Capital leases, net of current portion 24,622 45,057
– 11,001,935
Senior secured convertible notes payable, net of discount of $-0-
and $2,498,065, respectively
– 430,316
Senior subordinated convertible notes payable, net of discount of
$-0- and $19,684, respectively
Asset retirement obligation 155,363 149,236
———– ———–
Total Liabilities 21,088,299 27,754,840
———– ———–
STOCKHOLDERS’ EQUITY (DEFICIT):
215,441 188,341
Common stock, $.002 par value, 300,000,000 shares authorized;
108,294,412 and 94,744,412 shares issued and outstanding,
respectively; Includes non-vested shares of 237,500 and 575,000,
respectively
Additional paid in capital 72,764,515 59,021,550
Accumulated (deficit) (61,558,017) (59,746,543)
Accumulated other comprehensive income (loss) 78,183 (798)
———– ———– —
Total Stockholders’ Equity (Deficit) 11,500,122 (537,450)
———– ———– —
$ 32,588,421 $ 27,217,390
==== =========== == ===========
SANTA FE GOLD CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE (LOSS)
(Unaudited)
Three Months Ended Six Months Ended
December 31, December 31,
———————————– ———————————–
2011 2010 2011 2010
—————– —————– —————– —————–
SALES $ 1,918,495 $ 473,440 $ 4,469,219 $ 1,250,262
— ———- — ———- — ———- — ———-
OPERATING COSTS AND EXPENSES:
Costs applicable to sales 1,032,488 304,335 2,652,978 699,422
Exploration, mine and mill start up costs 713,067 682,378 1,242,021 1,072,397
General and administrative 920,470 726,456 1,692,160 1,491,540
Depreciation and amortization 658,312 575,844 1,316,719 1,148,001
Accretion of asset retirement obligation 4,000 – 6,127 –
———- ———- ———- ———-
3,328,337 2,289,013 6,910,005 4,411,360
———- ———- ———- ———-
LOSS FROM OPERATIONS (1,409,842) (1,815,573) (2,440,786) (3,161,098)
———- — ———- — ———- — ———- —
OTHER INCOME (EXPENSE):
(Loss) on disposal of assets – – (152,587) –
Interest income 2,336 1,930 5,085 6,438
Miscellaneous income(loss) 5,328 (1,166) 5,328 (2,471)
Gain (loss) on derivative instrument liabilities (89,636) (3,197,189) 2,798,124 (5,324,562)
Accretion of discounts on notes payable (784,839) (312,793) (1,338,685) (609,157)
Interest expense (376,109) (185,687) (687,953) (371,334)
———- — ———- — ———- — ———- —
(1,242,920) (3,694,905) 629,312 (6,301,086)
———- — ———- — ———- ———- —
(LOSS) BEFORE PROVISION FOR INCOME TAXES (2,652,762) (5,510,478) (1,811,474) (9,462,184)
PROVISION FOR INCOME TAXES – – – –
———- ———- ———- ———-
NET LOSS (2,652,762) (5,510,478) (1,811,474) (9,462,184)
OTHER COMPREHENSIVE INCOME
Unrealized gain on marketable securities 47,002 91,942 78,981 91,942
———- ———- ———- ———-
NET COMPREHENSIVE LOSS $ (2,605,760) $ (5,418,536) $ (1,732,493) $ (9,370,242)
== ========== == == ========== == == ========== == == ========== ==
Basic and Diluted Per Share data
Net (Loss) – basic and diluted $ (0.03) $ (0.06) $ (0.02) $ (0.10)
== ========== == == ========== == == ========== == == ========== ==
Weighted Average Common Shares Outstanding:
Basic and diluted 95,877,564 92,433,783 95,217,238 92,364,720
========== ========== ========== ==========
SANTA FE GOLD CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended
December 31,
——————————————-
2011 2010
———————- ——————-
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (1,811,474) $ (9,462,184)
Adjustments to reconcile net loss to net cash used in operating
activities:
Depreciation 1,316,719 1,148,001
Stock-based compensation 337,641 686,294
Accretion of discount on notes payable 1,338,686 609,157
Accretion of asset retirement obligation 6,127 –
(Gain) loss on derivative instrument liabilities (2,798,124) 5,324,562
Loss on disposal of assets 152,587 –
Amortization of deferred financing costs 335,312 49,159
Net change in operating assets and liabilities:
Accounts receivable 460,775 (657,178)
Inventory 66,366 –
Prepaid expenses and other current assets (522,223) 33,472
Accounts payable and accrued liabilities (562,284) 69,604
Deferred revenue (451,654) (117,137)
Accrued interest payable 140,519 (9,680)
———- ———- —
(1,991,027) (2,325,930)
Net Cash Used in Operating Activities
———- – ———- —
CASH FLOWS FROM INVESTING ACTIVITIES:
Decrease to restricted cash 178,658 –
Proceeds from disposal of assets 25,000 –
Purchase of marketable securities – (98,058)
Notes receivable and accrued interest (4,089) –
Purchase of property, plant and equipment (799,734) (459,345)
Construction in progress (2,668,896) (1,758,614)
———- – ———- —
Net Cash Used in Investing Activities (3,269,061) (2,316,017)
———- – ———- —
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of stock – 2,000,001
Proceeds from notes payable 15,105,119 77,306
Payments on notes payable (5,103,490) (139,634)
Payments on capital leases (64,015) (68,207)
Payment of financing costs (1,370,000) (136,000)
———- – ———- —
Net Cash Provided by Financing Activities 8,567,614 1,733,466
———- ———-
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 3,307,526 (2,908,481)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 172,531 5,540,130
———- ———-
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 3,480,057 $ 2,631,649
======== ========== === ==========
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest $ 675,039 $ 529,873
======== ========== === ==========
Cash paid for income taxes $ – $ –
======== ========== === ==========
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND
FINANCING ACTIVITIES:
Stock issued for services $ – $ 6,750
======== ========== === ==========
Issuance of common stock for conversion of convertible notes payable $ 13,432,424 $ –
======== ========== === ==========
SOURCE: Santa Fe Gold Corporation
Santa Fe Gold Corporation
W. Pierce Carson
President and Chief Executive Officer
505-255-4852
