Besra Announces Q1 FY2014 Results

Besra Announces Q1 FY2014 Results 
TORONTO, CANADA -- (Marketwired) -- 11/14/13 -- Besra
(TSX:BEZ)(ASX:BEZ)(OTCQX:BSRAF)(FRANKFURT:OP6) today announced its Q1
FY2014 results with 14,425 oz of gold produced with a cash cost per
oz of US$1,002 and all-in sustaining costs of US$1,463 per oz. These
costs were higher than budget owing to a disputed export tax
assessment.  
The Vietnam Customs assessment (see Besra press release dated 5 July
2013 and subsequent updates) resulted in temporary import and export
restrictions which affected our ability to import parts, stopping
significant portions of our mine equipment and mill circuits
including crushing and grinding at both mines, also causing us to
sell gold in country or export dore, incurring 10% VAT or 10% export
tax respectively. 
But for those interruptions and one-off additional costs, normalised
all-in sustaining costs would have been below FY2014 target of $1,150
and operating cash costs below $700. The Company calculates that over
3,000 ounces of lost production occurred due to the restrictions.
Future quarters are expected to revert to the normalized figures. 


 
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                                                        Q1 2014      Q1 2013
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Ore mined (tonnes)                                      156,587       96,189
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Average mill feed grade (g/t)                              3.18         4.33
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Recovery (%)                                                 90           89
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Gold production (oz)                                     14,425       11,912
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EBITDA (US$)                                           (904,564)   3,022,891
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Average realized gold price (US$/oz)                      1,293        1,649
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Operating cash cost (US$/oz)                              1,002          874
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All-in sustaining cost (US$/oz)                           1,463        1,381
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According to Besra CEO John Seton, "The first quarter of 2014
presented an array of challenges for our operations in Vietnam
alongside a range of efficiencies and cost reductions as well as good
progress on our feasibility work at Bau. Despite making real
efficiencies and cost savings across the board, including a 35%
reduction in corporate and administrative expenses, we've been
frustrated by two issues in Vietnam which have hampered operations. 
"The export tax assessment is still in dispute, however we were able
to have the import and export restrictions lifted after high level
discussions with government Ministers and senior bureaucrats. As a
result all items that were stuck in Customs during the period have
since been released and delivered. We are hopeful the dispute will be
finally resolved in the coming months." 
The delays meant that Q1 2014 ounce production was less than planned
and at higher costs. Despite this, the Company is maintaining its
production forecast for FY2014 of 65-70,000 oz and is still targeting
annual all-in sustaining costs of $1,150 per ounce. 
"We were also concerned by a proposal put forward to the Government
of Vietnam by the Ministry of Finance that included an increase in
gold royalty. We immediately undertook an extensive education
campaign, invited members of the National Assembly to visit our sites
in Vietnam, held briefings, financial model presentations and
meetings with senior politicians. As a result the Standing Committee
returned the proposal to the Ministry of Finance. We continue to seek
a reduction in royalties that would provide a far more encouraging
environment both for Besra and other potential foreign investors and
achieve higher overall revenues for Vietnam," said Seton. 
There were a number of positives in Q1, particularly in the
implementation of efficiencies and cost reductions in Vietnam, where
the Company: 


 
--  purchased a used OroStudio refining circuit which will go into
    production in mid November saving approximately US$2 million in total
    costs over the next year; 
--  renegotiated ore haul contracts at both the Company's Vietnam sites
    saving approximately US$600,000 per year; 
--  completed electrification basic engineering studies for both Bong Mieu
    and Phuoc Son which when implemented will result in US$6 million per
    year in diesel savings for a capex of US$2.4 million; 
--  booked savings on completed projects to date reducing cash costs by
    US$107/oz; 
--  completed roll out of an industry leading integrated exploration and
    mining software solution.

 
The Company is also undertaking a restructure of our Vietnam
operating companies to enable us to undertake a local initial public
offering (IPO) in FY2014 as market conditions allow. 
Regarding the Bau Project, Seton said, "The Jugan Hill Feasibility
Study for our Bau project has now progressed to third party review.
After extensive test work we have been able to produce concentrate at
greater than 40g/t which is currently with several smelters for
testing. In the event that we are able to secure suitable terms for
concentrate sales, significant savings will be made on capital costs
and financing of the development should be attainable on more
attractive terms than previously thought. We are on target for the
public release of the Jugan Hill feasibility study this quarter once
commercial negotiations are complete. We are also progressing
financing options with the aim of having the project financing plan
well advanced by the time the feasibility is released. This will be a
major step forward for the project and will provide a clear path to
production from our third mine." 
Seton stated, "In all, a difficult quarter, not least because of the
wallowing gold price and broad equities market malaise. However we
have so far overcome every obstacle that has come across our path.
With a unified management team, strict financial regime and excellent
progress on bringing our Bau project to fruition, we're upbeat about
the remainder of the year, and Besra's future as a multi-mine,
multi-country diversified gold production company." 
Besra Gold Inc. 
John A G Seton, Chief Executive Officer 
Besra - www.besra.com 
Besra is a diversified gold company focused on four advanced
properties; the Bau Goldfield in East Malaysia, Bong Mieu and Phuoc
Son in Central Vietnam, and Capcapo in the Philippines. Besra expects
to expand existing gold production capacity in Vietnam over the next
two years and is projecting new production capacity from Bau Central
during late 2015 (start up and production forecasts will depend on
the result of the current Jugan feasibility, which is scheduled for
completion in 2013).  
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS 
Certain of the statements made and information contained herein is
"Forward-looking information" within the meaning of applicable
securities laws, including statements concerning our plans at our
producing mines and exploration projects, which involve known and
unknown risks, uncertainties, and other factors which may cause the
actual results, performance or achievements of the Company, or
industry results, to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking information. Forward-looking information is subject
to a variety of risks and uncertainties that could cause actual
events or results to differ from those reflected in the
forward-looking information, including, without limitation, failure
to establish estimated resources or to convert resources to mineable
reserves; the grade and recovery of ore which is mined varying from
estimates; capital and operating costs varying significantly from
estimates; delays in obtaining or failure to obtain required
governmental, environmental, or other project approvals; changes in
national and local government legislation or regulations regarding
environmental factors, royalties, taxation or foreign investment;
political or economic instability; terrorism; inflation; changes in
currency exchange rates; fluctuations in commodity prices; delays in
the development of projects; shortage of personnel with the requisite
knowledge and skills to design and execute exploration and
development programs; difficulties in arranging contracts for
drilling and other exploration and development services; dependency
on equity market financings to fund programs and maintain and develop
mineral properties; and risks associated with title to resource
properties due to the difficulties of determining the validity of
certain claims and other risks and uncertainties, including those
described in each management's discussion and analysis released by
the Company. In addition, forward-looking information is based on
various assumptions including, without limitation, the expectations
and beliefs of management; the assumed long-term price of gold; the
availability of permits and surface rights; access to financing,
equipment and labour and that the political environment in the
jurisdictions within which the Company operates will continue to
support the development of environmentally safe mining projects.
Should one or more of these risks and uncertainties materialize, or
should underlying assumptions prove incorrect, actual results may
vary materially from those described in forward-looking statements.
Accordingly, readers are advised not to place undue reliance on
forward-looking statements, which speak only as of the date they are
made. Except as required under applicable securities legislation, the
Company undertakes no obligation to publicly update or revise
forward-looking information, whether as a result of new information,
future events or otherwise.
Contacts:
Besra Gold Inc.
James W Hamilton
Investor Relations
+1 (416) 572 2525 or TF: 1 888 902 5522 (North America)
+1 (416) 572 4202 (FAX)
ir@besra.com 
Besra Gold Inc.
Steve Wilson
Corporate Communications
+64 9 9121765 or M: +64 21675660
TF: 800 308 602 (Australia)
steve.wilson@besra.com
 
 
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