Page 36 By Gregory Reynolds Despite the problems created by the fuctuating gold price St Andrew Goldfelds Ltd expects to reach its tar get of 95000 to 105000 ounces of gold production this year St Andrew operating as SAS Gold Mines is a gold mining and explora tion company with an extensive land package in the T immins Mining Dis trict in Northeastern Ontario which lies within the Abitibi Greenstone Belt the most important host of his torical gold production in Canada SAS owns and operates the Holt Holloway and Hislop Mines which contribute approximately 100000 ounces of annual gold production The company is also advanc ing the T aylor Project and is conducting a number of exploration programs across 120km of land straddling the Destor Porcupine Fault Zone W e had another strong quarter of production with cash costs coming in below guidance said Jacques Perron president and CEO of SAS on Aug 13 Although we saw a slight net cash outfow due to onetime changes in operating working capital we be lieve we will return to a net cash fow positive state in the second half of 2013 In light of the drastic fuctuation in the gold price at the end of the frst quarter we revised our capital ex penditure programs and at the end of the second quarter we saw a substan tial reduction in our overall level of spending Grade improved at both Holloway and Hislop and we expect to transition mining at Hislop to the W est Pit in the third quarter W e are poised to meet our production guidance for the year and we are confdent we will also meet or beat our cash cost guidance SAS reported a net loss attributable to shareholders for Q2 2013 of 11 mil lion or nil on a per share basis com pared to net income of 44 million or 001 per share for Q2 2012 For Q2 2013 adjusted net loss was 09 mil lion or nil on a per share basis com pared to adjusted net earnings of 56 million or 002 per share for Q2 2012 Net loss and adjusted net loss for the quarter were impacted by the signif cant decrease in the price of gold as well as an increase in noncash depre ciation and depletion expense of 38 million when compared to Q2 2012 Cash provided by operating activities for Q2 2013 was 7 million or 002 per share compared to 91 million or 002 per share in Q2 2012 Net cash outfow for the quarter was 03 mil lion as compared to net cash fow of 1 million in Q2 2012 Net cash fow was negatively impacted by a 32 million decrease in net changes in operating working capital during Q2 2013 Production was in line with a total of 25353 ounces of gold derived from the three operations Cash costs during the quarter were below guidance with mine cash costs of US780 per ounce and total cash costs including royalty costs of US897 per ounce SAS re iterated its 2013 production guidance of between 95000 to 105000 ounces of gold with mine cash costs between US800 to US850 per ounce As of Oct 1 of Duncan Middlemiss P Eng became president CEO and a direct or of SAS in succession to Jacques Perron While external candidates as well as internal candid ates were considered by the board the excellent perfor mance of Middlemiss as chief operat ing offcer and vicepresiden t of op erations and his intimate knowledge of the operations and activities of SAS in Northeastern Ontario made his appointment logical and appropri ate in maintaining the SAS objective of consistent reliable gold production Middlemiss graduated from Queen s University in 1989 with a Bachelor of Science in Mining Enginee ring and then had six years with INCO Ltd in it Sudbury operations This was followed by seven years with Barrick Gold Corporation at the Holt McDermott Mine now owned and operated by SAS and then six years with Kirkland Lake Gold Inc at the Macassa Mine all of which has con tributed to his extensive background and knowledge of working with the various stakeholders in mining opera tions in Northeastern Ontario As Perron and Middlemiss worked closely together since 2008 in bring ing SAS to its current steady operat ing performance the board of SAS anticipates a smooth transition for this logical evolution at the senior man agement level On Aug 27 SAS provided an update on the recent under ground defnition drilling program at its T aylor Project located on the western portion of the company s land package in the T im Contd on pg 37 95000105000 ounce gold target unchanged at St Andr ew