Pure Gold Sees Q1 Results Outline Poor Financial Position

Pure Gold Mining (TSXV: PGM) early this morning posted its first quarter 2022 production results. The short of it is that the company has become very good at losing significant sums of money.

Gold production for the three month period amounted to 6,653 ounces, a decline of 12% from the 7,656 ounces produced in the fourth quarter. A total of 50,892 tonnes of ore was processed during the quarter, or approximately 570 tonnes per day, a decline over the 51,129 tonnes processed in the fourth quarter. Head grades meanwhile declined to 4.27 g/t.

Gold sold during the quarter meanwhile amounted to 7,876 ounces at an average price of $1,848, resulting in revenue of $18.4 million for the three month period. Cost of sales meanwhile hit $41.8 million, with the company failing to provide any costing on a per ounce basis. Loss from mine operations totaled $23.4 million during the three month period.

After additional corporate costs of $1.1 million and interest and financing costs of $5.7 million, which was partially offset by foreign exchange gains and income tax recovery, Pure Gold recorded a net loss of $21.5 million for the three month period, or a loss of $0.05 per share.

Cash as of the quarter end amounted to $6.5 million, with total current assets sitting at $17.3 million. This is despite raising $31.2 million in February. Negative operating cash flow amounted to $18.5 million, while negative investing cash flow came in at $6.2 million. Financing cash flow meanwhile contributed $23.0 million during the quarter. Accounts payable meanwhile came in at $22.4 million, while total current liabilities hit $192.1 million.

A $30.0 million financing remains outstanding at $0.15 per unit, with the company expecting to close the financing tomorrow. A further update on the firms financial position was not provided by the company.

Pure Gold Mining last traded at $0.165 on the TSX Venture.

Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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