Gold Sales and Net Income Up While Cash Costs of Production Remain Well Below Industry Average
NEW YORK,
-- Through January 31, 2008, net sales were $8,043,000 based on 9,550
ounces of gold sold at an average price of $843, as compared to sales
of $6,526,000 based on 9,194 ounces sold at an average price of $711
for the first quarter, a 23% increase. (The London Bullion Market
Association average gold PM fix was $835 for the second fiscal quarter,
ended January 31, 2008).
-- Net income was approximately $2,126,000 in the second quarter, which
equates to a fully diluted income per share of $0.01. Net income was
$1,747,000 in the first quarter. Net income for the six months ended
January 31, 2008 was $0.02.
-- Cash costs of just $246 were achieved for the six months ending
January, 31, 2008 -- well below the gold industry average of
approximately $371 per ounce.
'Once these projects are complete they will eliminate the restrictions limiting our current gold production to 50,000 ounces per year. We anticipate these upgrades will enable us to reach 70,000 ounces of gold production in 2009. The leach pad expansion and other upgrades are being funded from cash flow generated by our operation,' Brownlie added
A conference call discussing the second quarter results; will be held on
Dial-In Numbers: 1-800-785-6502 (US)
1-212-231-2901 (International)
Please dial in and register at least five minutes prior to the call.
About Capital Gold
Capital Gold Corporation (CGLD:CGC) is a gold production and exploration
company. Through its Mexican subsidiaries and affiliates, it owns 100% of the
El Chanate gold property in Sonora,
Statements in this press release, other than statements of historical information, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from those projected or suggested due to certain risks and uncertainties, some of which are described below. Such forward- looking statements include comments regarding the establishment and estimates of mineral reserves and non-reserve mineralized material, future increases in mineral reserves, the recovery of any mineral reserves, grade, processing rates and capacity, estimated future gold production, potential mine life and future growth of the company. Factors that could cause actual results to differ materially include timing of and unexpected events during expansion; variations in ore grade, tonnes mined, crushed or milled; delay or failure to receive board or government approvals; the availability of adequate water supplies; mining or processing issues, and fluctuations in gold price and costs. There can be no assurance that future developments affecting the Company will be those anticipated by management.
Any forecasts contained in this press release constitute management's current estimates, as of the date of this press release, with respect to the matters covered thereby. We expect that these estimates will change as new information is received and that actual results will vary from these estimates, possibly by material amounts. While we may elect to update these estimates at any time, we do not undertake to update any estimate at any particular time or in response to any particular event. Investors and others should not assume that any forecasts in this press release represent management's estimate as of any date other than the date of this press release. Additional information concerning certain risks and uncertainties that could cause actual, results to differ materially from that projected or suggested is contained in the Company's filings with the Securities and Exchange Commission (SEC) over the past 12 months, copies of which are available from the SEC or may be obtained upon request from the Company.
SOURCE Capital Gold