Veris Gold posts $6.5 million third-quarter net loss; gold revenue up

By Caroline Salls

Pittsburgh, Nov. 14 – Veris Gold Corp. reported a $6.5 million net loss for the quarter ended Sept. 30 on $57.3 million in gold revenue, according to a company news release.

Those figures showed improvement over the $18.2 million net loss posted for the quarter ended Sept. 30, 2013 on $57 million in gold revenue.

According to the release, the net loss is primarily the result of reduced income from operations, an increase in depreciation and depletion driven by the commissioning and improved mining of the Starvation Canyon mine and the commissioning of a second tailing facility in mid-2013, as well as an increase related to increased professional fees and directors fees incurred since the company entered creditor protection.

These factors were offset by a lower realized exchange rate on the Canadian dollar and reduced salaries and benefits business development costs.

Also, the company said it realized decreased interest expense as a result of a reduction in interest from the decreased time to maturity of a senior secured gold facility, a decrease in interest on convertible debt, a reduction in interest on forward contracts and a reduction in accretion from a decrease in short-term interest rates.

Veris said the increase in revenue was driven by a 6% increase in gold ounces sold, offset by a 4% decrease in the price-per-ounce of gold sold in the third quarter of 2014 compared to the same period of 2013.

In addition, the company said the development of Saval 4, the fourth underground mine at Jerritt Canyon, continued throughout the third quarter of 2014, completing the primary access portal and substantially advancing the secondary access to allow for the commencement of production.

Veris also said it continued to advance proceedings under its Companies' Creditors Arrangement Act case, signing a final cash collateral order with Deutsche Bank AG, which provided the framework for the restructuring process in the coming months.

Under this order, the company will continue refinancing efforts to allow for the purchase the DB Gold Forward Facility.

Veris said it launched sales proceedings for some or all of its assets on Nov. 1.

Veris is a Vancouver, B.C.-based gold production company. The Chapter 15 case number is 14-51015.

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